Wage and Hour

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In a challenge to the Department of Labor’s (DOL) 2019 overtime rule, the U.S. Court of Appeals for the Fifth Circuit affirmed the DOL’s authority to use a salary threshold requirement to define the executive, administrative, and professional (EAP) exemptions under the Fair Labor Standards Act (FLSA). See Mayfield, et al. v. U.S. Department of Labor, et al., No. 23-50724 (5th Cir. Sept. 11, 2024). This decision is a victory for the DOL as it currently defends challenges to its 2024 overtime rule that raised the minimum salary thresholds for the EAP exemptions.Continue Reading Fifth Circuit upholds DOL’s 2019 salary threshold amid ongoing 2024 threshold challenges

On August 28, 2024, New York State’s new law governing workplace-related contracts with freelancer workers – known as the Freelance Isn’t Free Act (FIFA) – will take effect. FIFA is designed to protect freelancers, i.e., independent contractors, from non-payment, late payment, and retaliation by hiring parties. It also imposes new requirements on hiring parties to provide written contracts, timely payment, and recordkeeping for freelance workers.

Background

In 2016, New York City enacted its own Freelance Isn’t Free Act, which was one of the first laws in the country to provide protections and remedies for freelance workers (and which we detailed here). The state law largely mirrors the city law, but with some key differences. For example, the state law excludes certain categories of workers from its coverages, including sales representatives, attorneys, licensed medical professionals, and construction contractors.Continue Reading How to prepare for New York State’s Freelance Isn’t Free Act

Beginning October 1, 2024, Maryland will require employers to disclose wage ranges and “other compensation” in job postings and upon the request of an applicant in an effort to promote greater wage transparency in the hiring process. The Maryland Wage Range Transparency Act amends the state’s existing law prohibiting employers from making salary history inquiries to now include these job posting wage transparency requirements. Maryland joins a growing number of states that have passed job posting pay disclosure requirements, including California, Colorado, Connecticut, the District of Columbia, Hawaii, Illinois, Minnesota, Nevada, New York, Rhode Island, and Washington.

Maryland’s new pay disclosure requirements apply both to external and internal job postings and cover any solicitation intended to recruit applicants for a specific available position. It also applies to any job posting for a job where work will be “physically performed at least in part” in Maryland but does not explain what “in part” means, leaving employers to guess if a single day or several months meets the test, or whether a remote worker who comes to periodic meetings in Maryland is covered. Continue Reading Maryland joins the growing list of states requiring pay disclosure in job postings

“Under an amendment to the state labor law that took effect June 19, 2024, New York employers must now provide up to 30 minutes of paid lactation break time “each time such employee has reasonable need to express breast milk.” The amended law – which previously only required business to provide reasonable unpaid break time for such purpose – does not cap the amount of paid lactation breaks to which an employee is entitled and guidance issued by the New York State Department of Labor suggests that employees may be entitled to multiple paid lactation breaks in a given day, so long as the employee “reasonably need[s]” the break. Employers must also allow employees to use existing paid break or meal time for breast milk expression in excess of 30 minutes.Continue Reading Changes to New York employment law: Paid lactation breaks now in effect

The U.S. Supreme Court agreed to review a case on appeal from the Fourth Circuit involving the burden of proof required for an employer to show that an employee’s job position is exempt from overtime under the Fair Labor Standards Act (FLSA). The high court’s decision will have a notable impact on the ability of employers to defend misclassification claims brought under the FLSA.

While the Fifth, Sixth, Seventh, Ninth, Tenth, and Eleventh Circuits have applied the “preponderance of the evidence” standard, the Fourth Circuit has repeatedly applied the notably higher “clear and convincing” standard, including most recently in Carrera v. EMD Sales, 75 F.4th 345 (4th Cir. Jul. 27, 2023). The Court agreed to review the Fourth Circuit’s decision in Carrera to resolve this split among the federal circuits on the appropriate burden of proof for FLSA exemptions.Continue Reading U.S. Supreme Court agrees to resolve the split between the Circuits on the burden of proof for FLSA exemptions

On May 6, 2024, the California Supreme Court issued a significant ruling in Naranjo v. Spectrum Security Services, Inc. (Case No. S279397). The decision provides much-needed clarity on California’s wage statement requirements and also held that employers can assert a good faith defense to wage statement claims under appropriate circumstances.

Labor Code section 226 states that California employers must provide employees with accurate itemized wage statements. Employees can seek statutory penalties if an employer fails to provide accurate itemized wage statements and such failure is “knowing and intentional”. (Lab. Code, section 226, subd. (e)(1).). While the statutory penalties are capped at $4,000 per employee (in addition to the employees’ associated attorneys’ fees and costs), the aggregated wage statement penalties can add up quickly in the class action context.Continue Reading Key victory for California employers: California Supreme Court accepts good faith defense to wage statement violations

On April 23, 2024, the U.S. Department of Labor (DOL) announced a final regulatory rule that will raise the minimum salary threshold for employees who are classified as “exempt” under the white-collar exemptions to the Fair Labor Standards Act (FLSA) in two steps: first in July 1, 2024, and then again in January 1, 2025. The new rule also creates a mechanism for subsequent automatic increases every three years thereafter based on then-current economic data, with the next increase slated for July 1, 2027. 

This new rule comes after the DOL proposed these changes last year in August 2023. Under the FLSA and DOL regulations, for an employee to be properly classified as “exempt” from overtime, the employee must be paid at least the minimum salary threshold and the employee’s job position must also meet certain tests regarding their job duties (namely exemptions for job duties performed by executive, administrative, professional, outside sales and computer employees, commonly referred to as the “white collar” exemptions).Continue Reading U.S. Department of Labor mandates two salary threshold increases for white collar FLSA exemptions and a mechanism for future automatic increases

California’s new law that creates a separate minimum wage applicable only to fast food restaurant employees took effect on April 1, 2024. Under Labor Code Section 1475 (LC 1475), this minimum wage is $20 per hour. It represents a significant increase from the current statewide minimum wage of $16 that went into effect at the beginning of the year. Many local jurisdictions within the state already have a minimum wage above $16 per hour, but none as high as $20 per hour. Continue Reading California’s new minimum wage for fast food restaurants took effect this month

On March 14, 2024, Virginia Governor Glenn Youngkin (R) vetoed identical bills passed by the Virginia legislature barring employers from asking about a job applicant’s salary history and requiring pay information to be included in job listings.

Senate Bill 370 and House Bill 990, introduced by Senator Jennifer Boysko (D) and Delegate Michelle Maldonado (D), respectively, add a new “salary history ban” statute to the Chapter of the Virginia Code that provides protections for employees. The legislation passed along party lines, with support from Democratic majorities in both the House and the Senate.

The proposed legislation prohibits prospective employers from (i) asking job applicants for their wage or salary history; (ii) relying on that history in determining the applicant’s starting wage or salary; (iii) considering wage or salary history when making a hiring determination; and (iv) refusing to interview, hire, employ, promote, or otherwise retaliate against an applicant for not providing wage or salary history. It also requires prospective employers to disclose the wage, salary, or wage or salary range for public and internal job postings. The legislation also creates a cause of action for aggrieved applicants and employees and provides for statutory damages between $1,000 and $10,000 or actual damages, whichever is greater, reasonable attorney’s fees and costs, and other appropriate relief.Continue Reading Virginia governor vetoes “salary history ban” statute legislation

Following a number of other states, the District of Columbia Council passed The Wage Transparency Omnibus Amendment Act of 2023 (the 2023 Act), which was approved by Mayor Muriel Bowser on January 12, 2024, and is pending Congressional review. The 2023 Act amends the D.C. Wage and Transparency Act of 2014 (the 2014 Act) to compel openness in compensation by requiring employers to publish wage bands for advertised positions, prohibiting wage screening of applicants, and requiring disclosure of the existence of healthcare benefits prior to interviews.Continue Reading Show them the money: D.C. law to require employers to disclose compensation to job candidates