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On November 8, 2018, the U.S. Department of Labor (DOL) re-issued an opinion letter rescinding the “80/20 Rule,” which prohibited employers from taking a tip credit if a tipped employee spent more than 20% of his or her working time on non-tipped work. The DOL’s new guidance provides restaurant and hospitality employers with clarity and a more practical approach regarding when a tip credit can be taken.

Under the Fair Labor Standards Act (FLSA), the tip credit allows employers to pay tipped employees not less than $2.13 per hour and to take a tip credit equal to the difference between that amount and the federal minimum wage. So, before an employer can take the tip credit, it must determine whether the employee is working in a tipped job.

If an employee works in separate jobs, one of which is tipped and the other of which is not, the employee has “dual jobs,” and the employer can only take the tip credit when the employee is working in the tipped job. For example, if an employee works at times as a waiter and at other times as a maintenance worker, the employer can take the tip credit only for the time the employee spends working as a waiter and must pay the full minimum wage for the time the employee spends working as a maintenance worker.Continue Reading Here’s a tip for you: DOL offers new tip credit guidance rescinding 80/20 rule

Employers considering requiring their employees sign arbitration agreements with class waivers just got a real-world example of the effectiveness of such agreements. On September 25, 2018, the U.S. Court of Appeals for the Ninth Circuit upheld the enforceability of arbitration agreements signed by thousands of Uber drivers in California. In the underlying lawsuits, the Uber

The Occupational Safety and Health Administration’s (OSHA) new reporting rule goes into effect August 10, 2016. Although it does not expressly address post-accident drug testing, OSHA’s commentary related to the new rule makes clear that such testing will now be squarely in the agency’s crosshairs. Accordingly, many employers may want to consider updating their drug-testing policies to ensure OSHA compliance.
Continue Reading New OSHA Rule May Require Employers to Update Drug-Testing Policies

As technology accelerates and electronic information theft becomes more difficult to detect and prevent, vigilant companies constantly look for ways to protect the trade secrets they consider their “crown jewels.” The passage of the Defend Trade Secrets Act of 2016 (DTSA) will help company management and counsel sleep better knowing that federal courts will be empowered to provide consistent, uniform trade secret protection across the country.

The House voted yesterday to pass the DTSA, which the Senate had unanimously passed.  President Obama is expected to sign it into law.

The DTSA amends the Economic Espionage Act of 1996 (EEA) by allowing plaintiffs to file civil lawsuits for trade secret misappropriation in federal court.  Thus, the DTSA provides an option to bring claims for misappropriation of trade secrets in federal court when federal jurisdiction would not otherwise exist. It also provides uniformity in the law regarding trade secrets at a federal level, and should result in the development of national case law in an area that is often viewed as patchwork at best. This consistency, along with the benefit of access to federal courts, is one of the main reasons company management strongly supported the DTSA.
Continue Reading Landmark Federal Trade Secrets Legislation on Its Way to President Obama for Signature

No online shopping day is bigger than Cyber Monday. According to the National Retail Federation, an estimated 127 million people shopped on Cyber Monday last year—significantly more than the estimated 87 million in-store, Black Friday shoppers. In fact, Cyber Monday 2014 brought online retailers a staggering $2.5 billion in sales.

Given the temptation Cyber Monday provides to employees to use company and/or personal devices to shop for deals while at work, the shoppers’ “holiday” – like its springtime counterpart for sports fans, March Madness – serves as a reminder for employers: you would be wise to plan ahead, including by reviewing and updating your computer-use and monitoring policies. Below we offer some practical and legal considerations employers should keep in mind when deciding the appropriate scope of policies that limit employees’ at-work, personal use of company-provided devices.
Continue Reading Employers’ Thanksgiving Plans Should Include Cyber Monday Prep: Are Your Computer Policies Up to Date?

The recent hacking attack against the Houston Astros is a wake-up call for all employers: no organization is safe from its adversaries’ attempts to steal proprietary information to gain a leg up in the competition. The infiltration of the Houston Astros’ network reportedly was carried out by employees of the Cardinals – an Astros’ arch