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 … Continue Reading
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 … Continue Reading
On July 18, 2018, New York City’s temporary scheduling provisions of the New York City Fair Workweek Law went into effect. As a reminder, this law requires covered employers to grant employees a maximum of two temporary work schedule changes per calendar year for qualifying personal events. Also, the law prohibits employers from retaliating against … Continue Reading
Today, the California Supreme Court issued its much-anticipated opinion in Troester v. Starbucks Corp., No. S234969 (Cal. July 26, 2018), regarding whether the long-standing de minimis doctrine adopted under the federal Fair Labor Standards Act (FLSA) applies to claims for unpaid wages for minute increments of time under the California Labor Code. The majority opinion … Continue Reading
The California Supreme Court handed down its highly anticipated decision in Dynamex Operations West, Inc. v. The Superior Court of Los Angeles County, No. S222732 (Cal. April 30, 2018), adopting a new legal standard to be used in determining whether workers should be classified as employees or as independent contractors. Specifically, in the unanimous Dynamex … Continue Reading
Ruling has encouraging implications for all employers Earlier today, the U.S. Supreme Court ruled that auto service advisors—employees at car dealerships who advise customers about repair work—are exempt from the Fair Labor Standards Act’s (FLSA) overtime requirements. The ruling reverses unexpected decisions by the Department of Labor and the Ninth Circuit that upended what had … Continue Reading
An employee of a marijuana dispensary in Colorado filed a claim in federal court alleging that he was not paid overtime in violation of the federal Fair Labor Standards Act (FLSA). The dispensary attempted to dismiss the case by arguing that its business is illegal under federal law and, therefore, typical legal protections are unavailable … Continue Reading
On October 13, 2017, the Court of Appeals for the Third Circuit held that short breaks during the work day of 20 minutes or fewer are compensable as a “bright-line rule” under the Fair Labor Standards Act (“FLSA”). The case, DOL v. American Future Systems, et al., arose out of the employer’s policy of withholding … Continue Reading
In a recent Wage and Hour development, the Fifth Circuit held that the “fluctuating workweek method,” which allows employers to decrease their liability for overtime payments in situations where they misclassify exempt employees, should not automatically be used where the employee works a different number of hours each week, based on a recurring, fixed schedule. … Continue Reading
On July 13, 2017, in a decision with serious repercussions on the scope of PAGA discovery, the California Supreme Court overruled the Court of Appeals in Williams v. Superior Court to allow state-wide discovery of Marshalls employees’ contact information, without the plaintiff first having to show any evidence to support his own individual claims or the … Continue Reading
While pundits and practitioners eagerly await the U.S. Supreme Court’s looming decision on whether class action waivers in employment-related agreements violate the National Labor Relations Act (NLRA) – which will not be issued until 2018 – one New York State court has decided to wade into the fracas. On July 18, a New York State … Continue Reading
As we previously reported, the New York City “Freelance Isn’t Free” Act (the Act) took effect on May 15, 2017. The Act requires virtually all entities that engage an independent contractor in NYC for $800 or more in services to execute a written agreement with the contractor before work begins. The Act additionally bars wage … Continue Reading
On May 15, a new law takes effect in New York City that will require written agreements between many, if not most, independent contractors and the entities that engage them. As we previously reported, the “Freelance Isn’t Free” Act (the Act) requires that virtually all entities that engage a “freelance worker” for $800 or more … Continue Reading
Recently, New York’s Industrial Board of Appeals (IBA) revoked regulations issued by the State’s Department of Labor (NYSDOL) governing employee wage payments via direct deposit and payroll debit cards, which were scheduled to go into effect March 7, 2017. The IBA, an independent agency with certain oversight authority over the NYSDOL, held that the proposed … Continue Reading
In New York, a large number of wage and hour requirements are statutorily codified in the Labor Law. Many others requirements, however, are set forth in regulations known as wage orders, which are issued and updated from time-to-time by the New York State Department of Labor (NYSDOL). The NYSDOL publishes wage orders covering the hospitality, … Continue Reading
This installment of our ongoing series prognosticating about the new Presidential administration focuses on the regulatory environment employers may face. President-elect Trump has promised to revoke a number of the more employee-friendly measures that the Obama Administration has passed over the previous eight years. Additionally, Ivanka Trump, who was influential throughout her father’s campaign, has … Continue Reading
A Texas federal court judge has issued a preliminary nationwide injunction blocking the U.S. Department of Labor (DOL) from implementing the controversial overtime rule set to take effect December 1. The rule would have more than doubled the weekly salary threshold for the federal Fair Labor Standards Act’s so-called “white collar” exemptions, from $455/week to … Continue Reading
We invite our blog readers to attend a free one-hour seminar on Thursday, December 1: “The (Over) Time is Now.” Reed Smith attorney Miriam Edelstein will join a panel to discuss the Department of Labor’s new overtime rules. The program will be held at the headquarters of Namely (the HR, Payroll, and Benefits platform provider) … Continue Reading
In New York, a large number of wage and hour requirements are statutorily codified in the Labor Law. Many others requirements, however, are set forth in regulations known as wage orders, which are issued and updated from time-to-time by the New York State Department of Labor (NYSDOL). The NYSDOL publishes wage orders covering the hospitality, … Continue Reading
On October 27, the New York City Council, long known for pushing the envelope when it comes to employment legislation, passed a first-of-its-kind bill, known as the “Freelance Isn’t Free” Act, that requires written agreements between certain independent contractors and the entities that engage them (the Act). The Act also bars wage theft and retaliation … Continue Reading
The Southern District of New York (SDNY) recently announced a new pilot mediation program for cases filed under the Fair Labor Standards Act (FLSA). Effective October 3, 2016, any federal wage and hour cases that are assigned to Judges Abrams, Bricetti, Carter, Daniels, Ramos, Sebel, and Woods, will be ordered directly to mediation. The mediation … Continue Reading
On September 30, 2016, the U.S. Department of Labor issued the long-awaited Final Rule implementing President Obama’s Executive Order 13706, which requires federal contractors (and their subcontractors) to provide workers with a minimum of seven days of paid sick leave. The Rule will impose substantial new obligations on many employers beginning January 1, 2017, and … Continue Reading
Get ready, set…but wait…maybe not… As employers gear up to meet the swiftly approaching December 1, 2016, deadline to implement the Department of Labor’s (‘DOL”) new overtime pay requirements for white-collar workers, 21 states, the U.S. Chamber of Commerce, and several other business groups filed legal challenges in various courts to halt the changes The DOL’s … Continue Reading
The New York State Department of Labor (NYSDOL) recently finalized a new rule that significantly changes how employers pay their employees through direct deposit and payroll debit cards. Even though the new regulation does not go into effect until March 7, 2017, Empire State employers should begin preparing for the effective date now, especially for … Continue Reading
