Archives: Wage and Hour

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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

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

Does the US Winter Weather Impact Employee Wages? (US)

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

U.S. Department of Labor Reinstates Previously Rescinded Wage and Hour Opinion Letters (US)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that were published during the final months of former President George W. Bush’s administration, but were subsequently rescinded by the Obama administration.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

New York Proposes Expanded Call In and Scheduling Regulations (US)

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

Federal Court Clarifies When Employers Must Pay Employees For Pre- or Post-Shift Activities

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

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

Department of Labor Takes Surprise Appeal From Texas Decision Overturning Overtime Rule

The Department of Labor (DOL) is appealing a Texas judge’s decision to toss out an Obama-era rule that would have extended overtime pay to some 4 million Americans. As we reported previously, the Secretary of Labor under former President Obama announced a rule raising the salary basis threshold for overtime exemption from $455/week to $913/week, … Continue Reading

Third Circuit Refuses to Give Progressive a (Rest) Break on Compensable Flex Time Policy

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

Ninth Circuit Refuses to Defer to DOL’s Interpretative Guidance on FLSA Tip Credit Regulation

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

Texas Federal Judge Invalidates Obama-Era Overtime Regulations

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

Class Action Waivers: Two More Fifth Circuit Opinions Favor Waivers Over NLRB Challenges

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

Attention Kmart Shoppers! Oregon Passes Law Regulating Retail Worker Scheduling Practices

Oregon is the first state to mandate that the state’s largest employers in the retail industry, as well as in the hospitality and food service industries – those with more than 500 workers  – provide employees with their schedules, in writing, at least a week ahead of time.  They’ll also have to give workers a … Continue Reading

UK Employment Appeal Tribunal confirms that statutory holiday pay should include voluntary overtime

One of the last remaining pieces in the jigsaw of what constitutes “normal pay” for the purpose of calculating statutory holiday pay was slotted into place by the Employment Appeal Tribunal on Monday when it confirmed that such calculations should include voluntary overtime. Willetts and Others v. Dudley Metropolitan Borough Council is a claim for … Continue Reading

US Department of Labor Resumes Issuing Opinion Letters To Assist Employers Navigate Federal Wage & Hour and Leave Laws

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

US Department of Labor Withdraws Obama-Era Interpretation Letters On Key Wage And Hour Issues

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

Sixth Circuit Joins Two Sister Circuits In Holding That Class Action Waivers In Employment Arbitration Agreements Violate National Labor Relations Act

Court joins Seventh and Ninth Circuits in holding that employer’s requiring employees to waive class and collective action procedures as a condition of employment is unenforceable, but issue will be resolved late this year by United States Supreme Court The issue of whether an employer can require, as a condition of employment, that an employee … Continue Reading
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