Under the Fair Labor Standards Act (“FLSA”), employers are required to pay non-exempt employees a minimum hourly wage of $7.25. However, employers with “tipped employees” are able to pay such employees a cash wage of $2.13 per hour and take a “tip credit” toward their minimum wage obligation to make up the difference between the … Continue Reading
Our colleague Brent Owen at the FrESH Law Blog (which covers perspectives on Environmental, Safety, and Health law) authored the post below addressing the US Supreme Court’s upcoming decision in Kisor v. Wilkie, which will address the Auer standard of deference that is applied by the courts to administrative agencies’ interpretations of their regulations. Although Kisor involves the Department of … Continue Reading
On January 15, 2019, the United States Supreme Court held in New Prime Inc. v. Oliveira that a trucking company could not compel its drivers, which it classified as independent contractors, to arbitrate their wage and hour claims against the company because Congress intended to exempt all interstate transportation workers from the Federal Arbitration Act … Continue Reading
Earlier this year, the United States Supreme Court held in Epic Systems Corp. v. Lewis that employers can require employees to agree to arbitrate disputes between them solely on an individual basis and to waive class and collective action litigation procedures without running afoul of federal law. (See our post here). Addressing an issue not … Continue Reading
We’ve been keeping you apprised of the many developments over the past few years coming from the United States Supreme Court and other courts concerning agreements between employers and their employees to arbitrate disputes arising out of the employment relationship. The Supreme Court’s decision last term in Epic Systems v. Lewis, which we discussed in … Continue Reading
On August 28, 2018, the Wage and Hour Division of the United States Department of Labor (“WHD”) issued four new opinion letters interpreting various aspects of the federal Fair Labor Standards Act (“FLSA”). In addition, the WHD has announced plans to analyze and consider changes to the FLSA’s white collar overtime exemption regulations applicable to … Continue Reading
This week, U.S. Secretary of Labor Alexander Acosta announced that the Department of Labor (DOL), in collaboration with other federal employment agencies, was creating an Office of Compliance Initiatives (OCI). The DOL, through its various divisions, oversees compliance with and enforces the Fair Labor Standards Act, the Family and Medical Leave Act, the Occupational Safety and … Continue Reading
On July 26, 2018, the California Supreme Court ruled in Troester v. Starbucks Corporation that the federal de minimis doctrine does not apply to a California employee’s class action wage claims. This ruling will have widespread impact, particularly on those employers with large numbers of non-exempt employees such as retailers and food service providers, as … Continue Reading
In a case of straightforward statutory interpretation, the U.S. Supreme Court held on April 2, 2018 in Encino Motorcars LLC v. Navarro that service advisors employed at car dealerships are exempt from the overtime pay requirement under the Fair Labor Standards Act (FLSA). The dispute began in 2011, when service advisors employed by Encino Motorcars, … Continue Reading
On March 6, 2018, the U.S. Department of Labor (“DOL”) announced a new, nationwide pilot program which it claims will facilitate quick and efficient resolutions of Fair Labor Standards Act (“FLSA”) minimum wage and overtime violations by allowing employers to promptly pay back wages to employees and at the same time avoid time consuming litigation … Continue Reading
In his first State of the Union Address, President Trump made the case for his first year in office as one of extraordinary legislative and regulatory accomplishments as part of his Administration’s efforts to build a “Safe, Strong, and Proud America.” In fact, 2017 was not a year of major legislative accomplishments, with the exception … Continue Reading
In the wake of fluctuations in federal labor law, in particular, as interpreted by the National Labor Relations Board (“NLRB”), regarding who may be considered a joint or co-employer of an employee, in 2017, Arizona enacted its own joint employer law. A.R.S. § 23-1604 makes clear that, at least under Arizona law, a franchisor is not a … Continue Reading
With much of the United States covered in ice and snow, many employers are questioning when they need to pay employees who are affected by weather-related disruptions. All throughout the United States employees have been late to work because they were stuck in the snow or their kids’ school was yet again delayed and businesses … Continue Reading
On January 5, 2018, the Wage and Hour Division of the U.S. Department of Labor (DOL) reissued 17 advisory Opinion Letters that were published during the final months of former President George W. Bush’s administration, but were subsequently rescinded by the Obama administration. Opinion Letters do not establish new law, but instead are vehicles through … Continue Reading
On Friday, January 5, 2018, the United States Department of Labor (“DOL”) issued a statement that it will no longer follow its six-factor test in determining whether an individual is a non-employee intern (rather than an employee) under the Fair Labor Standards Act (“FLSA”), and instead will apply a broader analysis commonly referred to as … Continue Reading
On October 13, 2017, the US Court of Appeals for the Third Circuit ruled in a precedential decision that employers are obligated by the Fair Labor Standards Act (FLSA) to pay their employees for breaks of 20 minutes or less, even if they are logged off their computers and free from any work-related duties. The … Continue Reading
The Fair Labor Standards Act (“FLSA”) provides that employers ordinarily must pay their non-exempt employees at least the federal minimum hourly wage of $7.25. However, employers may pay “tipped employees” as little as $2.13 per hour if they regularly earn more than $30 per month in tips, and then make up the difference between the … Continue Reading
In 2016, the Department of Labor issued long-awaited amendments to the Fair Labor Standards Act (“FLSA”) regulations that would have raised the minimum salary for employees exempt under the so-called “white collar” exemptions from $455/week ($23,660 annually) to $913/week ($47,476 annually) (the “Final Rule”). The Final Rule also would have required an upward adjustment to … Continue Reading
In early August, the United States Court of Appeals for the Fifth Circuit issued two decisions regarding class and collective action waivers. Like its earlier decisions in D.R. Horton, Inc. and Murphy Oil USA, Inc., both decisions supported employers’ use of waivers to eliminate group lawsuits against them in employment cases. The two new cases, … Continue Reading
Newly appointed Secretary of Labor Alexander Acosta announced on June 27 that the U.S. Department of Labor (“DOL”) would resume issuing opinion letters in response to employers and employees who submit inquiries seeking fact-specific interpretations of the Fair Labor Standards Act (“FLSA”) and the Family and Medical Leave Act (“FMLA”). Opinion letters are official, interpretative … Continue Reading
On June 7, 2017, the US Department of Labor (DOL) withdrew its 2015 Administrator’s Interpretation on “independent contractor” status under the Fair Labor Standards Act (FLSA) and its 2016 Administrator’s Interpretation for determining “joint employment” under the FLSA. The two guidance memos specifically were intended to increase liability for employers under the Fair Labor Standards … Continue Reading
On May 16, 2017, a two-member majority (Members McFerran and Pearce) of the National Labor Relations Board held that it was an unfair labor practice for the Grand Sierra Resort &Casino (GSR) to bar a former employee from its premises after she filed a class and collective action lawsuit against the employer.… Continue Reading
On May 2, 2017, the House passed H.R. 1180, The Working Families Flexibility Act of 2017, which would allow private employers to offer paid time off, also known as “comp time,” instead of time-and-a-half wages for overtime hours. Congress had previously amended the Fair Labor Standards Act in 1985 to allow public-sector employees to be … Continue Reading
As we previously reported, in November 2016, a Texas District Court’s temporary restraining order halted implementation of the Obama administration’s Department of Labor (DOL) regulations that were set to expand overtime pay for many US workers starting in December 2016. The Obama administration’s Department of Justice (DOJ) appealed that order, and asked for expedited review by the … Continue Reading
