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US Supreme Court Begins New Term with Three Arbitration Cases Set for Oral Argument in October

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

Eyes and Ears on the FLSA – U.S. Department of Labor Issues New Opinion Letters and Schedules Public Listening Sessions (US)

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

State Law Round-Up: New Sick Leave, Sexual Harassment Laws and Other State Law Developments (MA, MD, MN, NJ, NYC, TX, VT)

Massachusetts Imposes One-Year Cap and Other Restrictions On Non-Compete Agreements The Massachusetts Noncompetition Agreement Act (see link, at Section 24L) (“MNAA”) effective October 1, 2018, places new restrictions on the length and applicability of non-compete agreements between employers and employees who work within the state of Massachusetts. (Note that the law defines employees to include … Continue Reading

US DOL’s Voluntary Wage Underpayment Reporting Program – PAID – Now Underway

As we blogged earlier this year, in March 2018, the United States Department of Labor (DOL) announced a new program, referred to as PAID (or, Payroll Audit Independent Determination), under which employers may voluntarily apply for DOL assistance in resolving potential claims for wage underpayment under the federal Fair Labor Standards Act (FLSA).  As previously … Continue Reading

US Supreme Court Says No Overtime Pay for Auto Service Advisors

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

U.S. Department of Labor Announces New Pilot Employer Self-Reporting Program To Address Overtime and Minimum Wage Violations (US)

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

California Supreme Court Applies DLSE Overtime Pay Calculation Requirements Retroactively (US)

Few issues strike fear into the hearts of payroll professionals like trying to calculate overtime pay, especially given the challenges associated with determining the “regular rate of pay,” which serves as the foundation for the calculation of overtime pay for non-exempt, hourly employees. On Monday, March 5, 2018, the California Supreme Court ruled in favor … Continue Reading

Arizona Law Generally Exempts Franchisors From Being Considered Joint Employers With Franchisees (US)

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

U.S. Department of Labor Reinstates Previously Rescinded Wage and Hour Opinion Letters (US)

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

U.S. Department of Labor Abandons Strict, Six-Factor Intern Test In Favor Of Flexible “Primary Beneficiary” Test (US)

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

Paid Family Leave On the Rise – California and New York State Both Set to Expand Benefits Starting January 1, 2018

Come January 1, 2018, employees in California and New York will enjoy new and expanded rights to time off work, with pay, to attend to certain family needs.  New York, whose law was enacted in 2016 (see our prior post here), boasts its law as being the nation’s “strongest and most comprehensive” on paid family … Continue Reading

Accident or bad luck – not reasons to avoid paying the National Minimum Wage

As more employers are ‘named and shamed’ in the press for paying below the National Minimum Wage, the immediate question is “How can a large employer, with significant resources, be paying below the NMW by accident?” There are numerous areas where employers may find themselves unwittingly paying below the NMW and on the naughty step … Continue Reading
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