It is a common feature in many sectors for potential new recruits to undertake a work trial prior to being offered a permanent role. This type of trial, normally undertaken without pay, has obvious potential for the exploitation of the would-be employee. It certainly leads to a grey area when it comes to National Minimum … 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
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
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
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
Perhaps that is not really fair – Acas’ new guidance on overtime certainly does what it can to help employers on the vexed question of whether and how you take overtime into account for holiday pay purposes. However, it is held back from saying anything either new or useful because there haven’t been any developments … Continue Reading
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
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
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
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
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
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
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
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
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
The New York State Department of Labor has issued new, proposed regulations regarding “just-in-time,” “call-in,” and “on-call” pay – or pay required when an employer unexpectedly cancels a covered employee’s shift or calls them into work, or requires them to be on-call. The draft regulations supplement the state’s existing Minimum Wage Order for Miscellaneous Industries … Continue Reading
A federal court recently provided guidance on an issue that still vexes some employers, i.e., when they must pay employees for time spent on tasks immediately before or after a shift. Many employers require employees to take certain steps immediately before or after they start their actual shifts. For example, an employer might require an … Continue Reading
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
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
