Archives: Wage and Hour

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State Law Round-Up: Minimum Wage Hikes (MD, NM, CA); Kentucky Pregnant Workers Act; New Jersey Employee Rights; New York Voting Leave; Salary History Bans (OH, NM) (US)

Minimum Wage Updates On March 28, 2019, Maryland’s legislators voted to raise the state’s minimum wage to $15.00 per hour by January 1, 2025 for employers with 15 or more employees and July 1, 2026 for employers with 14 or fewer employees.… Continue Reading

More DOL Letters Needed For Clarity On Enforcement Strategy (US)

Expanding on their previous post on the subject, on April 3, 2019, Law360 published the following article authored by Squire Patton Boggs labor and employment attorneys Laura Lawless Robertson and Melissa Legault. The U.S. Department of Labor recently issued a trio of opinion letters offering employers guidance in implementing the Family and Medical Leave Act and the Fair Labor … Continue Reading

Department of Labor Proposes Update To Rules Governing Calculation Of Overtime Pay (US)

On March 28, 2019, the United States Department of Labor (“DOL”) issued a Notice of Proposed Rulemaking announcing proposed updates to the rules that govern how employers calculate overtime payments under the Fair Labor Standards Act (“FLSA”).  As a reminder, the FLSA requires employers to pay additional compensation to non-exempt employees for work that exceeds … Continue Reading

DOL Opinion Letter Clarifies Employer Responsibilities Regarding FMLA Leave Designation (US)

On March 14, 2019, the U.S. Department of Labor (“DOL”), Wage and Hour Division, released an opinion letter, FMLA2019-1-A, stating that employers cannot delay the designation of FMLA-qualifying leave or designate more than 12 weeks of leave (or 26 weeks of military caregiver leave) as FMLA leave.… Continue Reading

State Law Round-Up: Minimum Wage Hikes (IL, NJ, CA, NM); Michigan Paid Sick Leave; New York Employee Rights, New Jersey Leave and Benefits Expansion (US)

Minimum Wage Updates On January 17, 2019, New Jersey’s governor and state legislators agreed to a deal that will raise the state’s minimum wage to $15.00 by 2024. The current minimum wage in New Jersey is $8.85 an hour.  Under the new law, the state’s minimum wage will increase to $10.00 an hour on July … Continue Reading

Belgian social partners reach agreement on employment conditions for the next two years. Or do they?

Group of 10 reaches agreement on employment conditions In the very early morning of 26 February, the Belgian social partners in the so-called Group of 10 (the main representatives of employers’ federations and trade unions) reached the bones of an agreement on employment conditions for 2019-2020. In this draft agreement, the margin for increases in … Continue Reading

Déjà Vu All Over Again: U.S. Department of Labor Previews New(-ish) FLSA Overtime Exemption Requirements (Again)

For years – spanning two Presidential administrations – employers have been awaiting long-anticipated updates to the overtime exemption regulations to the Fair Labor Standards Act (FLSA).  Since 2004, to be exempt from the FLSA’s overtime compensation requirements under the so-called “white collar” exemptions (e.g., executive, administrative, professional employees), employees must be paid on a salary … Continue Reading

Department of Labor Says Employers Are Not Required to Pay Tipped Employees the Full Minimum Wage for Non-Tipped Activities (US)

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

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

Minutes Count: California Supreme Court Rejects De Minimis Doctrine for Wage Claim

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

Sleepovers and the NMW – clarity at last for the UK care sector

The Court of Appeal handed down its much anticipated judgment on Friday last week in the joined cases of Royal Mencap v Thompson Blake and John Shannon v Jakishan and Prithee Rampersad (t/a Clifton House Residential Home). The decision provides much-needed clarity on whether workers are entitled to the national minimum wage for each hour during … Continue Reading

Reducing UK holiday pay principles to individual contract terms

Here is a new case which you think initially might be quite helpful on the calculation of holiday pay, but which then suddenly veers off into the contractual undergrowth, and actually isn’t.  However, what it does do is administer a sharp lesson about the wisdom of trying to incorporate broad principles into individual employment contracts. … Continue Reading

California’s New “ABC Test” For Independent Contractors Is Anything But Elementary

On April 30, the California Supreme Court adopted in Dynamex Operations West, Inc. v. Superior Court the so-called “ABC test” to determine whether individuals are employees or independent contractors for purposes of determining the applicability of California’s Wage Orders.  The Wage Orders govern important employment issues including California’s unique daily overtime regimen and its requirements … Continue Reading

Cómo el cambio de gobierno en España podría aumentar los costes para los empleadores (Spain)

Tras una moción de censura en el Congreso español el 1 de junio, España tiene un nuevo Presidente del Gobierno, Pedro Sánchez, y un nuevo gobierno socialista. Si bien aún no se conocen todas las implicaciones de este cambio trascendental, el nuevo Presidente del Gobierno ha declarado que su gobierno: Continuará respetando la estructura y … Continue Reading

United States Supreme Court Issues “Epic” Decision for Employers

For the past six years, employers have challenged the National Labor Relations Board’s (“NLRB”) position that the National Labor Relations Act (“NLRA”) prohibits employers from requiring employees to forego class and collective action and instead individually litigate their employment-related claims.  (Our prior coverage on this issue has been extensive – see here.)  After a long … 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

New UK minimum wage rates bring employers closer to non-compliance

Following the Chancellor’s announcement in November’s budget regarding changes to the National Living Wage and National Minimum Wage rates, the National Minimum Wage (Amendment) Regulations 2018 have now been laid before Parliament. The Regulations implement these increases from 1 April 2018: National Living Wage (Over 25’s) – £7.83 (previously £7.50) 21-24 year olds – £7.38 … Continue Reading

California Federal Court Finds That “Gig Economy” Workers Are Independent Contractors, Not Employees (US)

Uber, Lyft, Airbnb, Postmates, DoorDash.  All are companies participating in what has been labeled the “gig economy,” where tasks are performed by workers on a short-term or freelance basis rather than through long-term or permanent employment.  As more people participate in this new, mostly smartphone application or Internet-based work model, litigation has followed centering on … Continue Reading
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