Tag Archives: wage and hour
SCOTUS: Employers Can Compel Individual Arbitration of Wage and Hour Claims
In its eagerly-awaited opinion in Epic Systems Corp. v. Lewis, the U.S. Supreme Court held on May 21 that class action waivers in arbitration agreements between employers and employees do not violate the National Labor Relations Act. The opinion resolves a split among federal circuits, and reiterates—once again—the strong federal policy favoring arbitration. While … Continue Reading
California Changes Rules on Independent Contractors
As reported by my colleagues in Proskauer’s California Employment Law Update, the Supreme Court of California established new rules on April 30, 2018 for determining whether a worker is an independent contractor or an employee for purposes of California’s Industrial Welfare Commission (IWC) Wage Orders. The Wage Orders set forth California’s requirements for minimum wage, … Continue Reading
DOL Clarifies Pay Rules for FMLA-Related Breaks
In an opinion letter issued on April 12, 2018, the U.S. Department of Labor concluded that 15-minute breaks throughout the day required by an employee’s serious health condition are not compensable—notwithstanding the general rule that breaks of 20 minutes or less are to be paid. The agency explained the exception as follows: [R]est breaks up … Continue Reading
DOL Clears Up Travel Time Issue For Employees With No “Normal Working Hours”
The rules on what kinds of travel time are (and are not) compensable for non-exempt employees are complex. As opposed to exempt employees—who generally receive a salary intended to compensate them for all working time, including time spent in business-related travel—non-exempt employees are often only paid for the particular hours that the law deems compensable. … Continue Reading
States’ Attorneys General Throw Shade on USDOL’s “PAID” Program
Last month, we discussed some serious concerns about the efficacy of the U.S. Department of Labor’s “PAID” program, under which employers can self-report wage and hour violations to the federal agency and negotiate a seeming resolution of potential claims. Chief among our concerns was that the resolution would not extend to state law claims, leaving … Continue Reading
Second Circuit Prohibits “Double Recovery” of Liquidated Damages Under FLSA and New York Labor Law
In a case of first impression, the Second Circuit held on April 6, 2018 that liquidated damages may not be awarded for the same course of conduct under both the Fair Labor Standards Act and the New York Labor Law. In its per curiam opinion in Rana v. Islam, No. 16‐3966‐cv, the Court of Appeals … Continue Reading
SCOTUS Soundly Rejects Notion That FLSA Exemptions Are To Be “Narrowly Construed”
In an April 2, 2018 decision of otherwise narrow appeal to most employers (whether the exemption in Section 13(b) (10)(A) of the Fair Labor Standards Act for an automobile “salesman, partsman, or mechanic” applies to “service advisors”), the Supreme Court flatly debunked the well-worn notion that FLSA exemptions are to be construed narrowly. To be fair, … Continue Reading
DOL’s “New” PAID Self-Reporting Program of Questionable Value to Employers
Earlier this week, the U.S. Department of Labor’s Wage and Hour Division announced the upcoming launch of a “new” pilot program called the Payroll Audit Independent Determination program (“PAID”). Under PAID, employers can come forward voluntarily to disclose wage and hour violations to the DOL, the DOL will supervise a settlement of any monetary claims … Continue Reading
DOL Adopts “Primary Beneficiary” Test For Internship Programs
The U.S. Department of Labor announced in a January 5, 2018 press release that it was scrapping the six-factor test it had used for years to determine whether interns are employees for purposes of the Fair Labor Standards Act and adopting the “primary beneficiary” test favored by a number of U.S. Courts of Appeals. Under the … Continue Reading
New York Minimum Salary for Exemption and Minimum Wage To Increase on December 31
It’s that time of year again! New York State’s annual threshold increases for overtime exemption and minimum wage go into effect on December 31, 2017. On that date: The minimum salary for exemption as an “administrative” or “executive” employee increases from $825 per week ($42,900 annually) to $975 per week ($50,700 annually) for New York … Continue Reading
SDNY Denies Approval in FLSA Settlement Based In Part on Overly Broad Non-Disparagement Clause
In its November 17, 2017 opinion in Galindo v. East County Louth, Inc. (No. 16 Civ. 9149), the Southern District of New York denied a motion to approve an individual FLSA settlement, including on the ground that the settlement agreement contained what the Court deemed to be an overly broad non-disparagement provision. In the settlement … Continue Reading
Ninth Circuit Joins Others in Endorsing Hourly Pay Averaging Under FLSA
On November 15, 2017, in a case of first impression in the Ninth Circuit, the Court of Appeals adopted the longstanding position of sister circuits and the U.S. Department of Labor that for purposes of determining whether an employee has received the minimum wage under federal law, the employer can divide total weekly earnings by … Continue Reading
Fifth Circuit Dismisses Appeal of Nationwide Injunction of Obama-Era Overtime Rule
In light of the Texas district court’s recent judgment invalidating the 2016 overtime rule, the DOL filed an unopposed motion to withdraw its appeal of the November 2016 order that preliminarily enjoined the rule on a nationwide basis. The Fifth Circuit Court of Appeals granted the motion and dismissed the appeal on September 6. Unless … Continue Reading
Texas Court Invalidates 2016 Federal Overtime Rule; DOL Seeks to Withdraw Appeal of Injunction
On August 31, 2017, the Texas federal district court that had issued a preliminary injunction in November 2016 blocking implementation of the Obama Administration’s revised overtime rule granted the plaintiffs’ motion for summary judgment, declaring the rule invalid and ending the case at the district court. The DOL had appealed the injunction with the Fifth Circuit Court … Continue Reading
Wage and Hour Considerations During Weather-Related Emergencies
As Tropical Storm Harvey continues wreak havoc across Texas and beyond, it’s the right time to revisit employer rights and responsibilities during a weather-related emergency or other major disruption. Here are some typical scenarios that employers face during weather-related or other emergencies, and the consequences under the wage and hour laws. “Our office was closed … Continue Reading
Top Five Proactive Ways for Start-Ups to Avoid HR Nightmares
DOL Pushes Ahead With Appeal of Overtime Rule Injunction
Earlier today, the U.S. Department of Labor filed a reply brief in further support of its appeal of the November 22, 2016 order in State of Nevada v. United States Dep’t of Labor, No. 4:16-CV-00731 (E.D. Tex.). That order, issued by federal district judge Judge Amos L. Mazzant, enjoined the DOL’s 2016 overtime rule on a nationwide … Continue Reading
DOL to Restart Conversation on New Overtime Rule
On June 27, 2017, the U.S. Department of Labor sent a Request for Information related to the now-enjoined overtime rule to the Office of Management and Budget for review. After OMB completes its review, the RFI will be published in the Federal Register for public comment. The new overtime rule, which was to take effect … Continue Reading
DOL Wage and Hour Division to (Once Again) Issue Opinion Letters
In what likely signals the end of the era of “Administrator’s Interpretations,” the DOL announced today that it will return to the practice of issuing opinion letters to provide guidance to employers and employees on Fair Labor Standards Act matters. DOL stopped issuing opinion letters in 2010, in favor of issuing broad guidance in the … Continue Reading
11th Circuit Denies Private Federal Right of Action for Withheld Tips
The Court of Appeals for the 11th Circuit held earlier this week that a plaintiff who received at least the minimum wage and any overtime pay owed could not sue under the FLSA for withheld tips. The federal minimum wage is $7.25 per hour. Section 203(m) of the FLSA permits employers to pay tipped employees … Continue Reading
DOL Withdraws Obama-Era Administrator’s Interpretations on Independent Contractors and Joint Employment
Employers across the U.S. were troubled by the sub-regulatory guidance issued by the DOL in 2015 and 2016 on independent contractors and joint employment. Today, the DOL announced the withdrawal of that guidance (Administrator’s Interpretations No. 2015-01 (July 15, 2015, on independent contractors) and No. 2016-01 (Jan. 20, 2016, on joint employment)). As you may … Continue Reading
UPDATE: Philadelphia Law Prohibiting Salary History Inquiries Survives Legal Challenge … For Now
A Pennsylvania federal district court has dismissed a lawsuit seeking to declare unconstitutional a Philadelphia ordinance making it unlawful for employers to inquire into a job applicant’s wage history during the hiring process. As we previously reported, the Chamber of Commerce for Greater Philadelphia (the “Chamber”) sought to enjoin the new city law in April 2017, … Continue Reading
NYC Mayor Signs Into Law Suite of Retail and Fast Food Employee Protections
On May 30, 2017, New York City Mayor Bill de Blasio signed a bill package into law that will impose new restrictions on retail and fast food employers with regard to employee scheduling, hiring, and pay practices. The laws take effect on November 26, 2017. The “Fair Workweek” bills address issues including more predictable working schedules, … Continue Reading
