Archives: Wage and Hour

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DOL makes historic, pro-business changes to FLSA joint employer test

On January 12, 2020, the U.S. Department of Labor (DOL) issued its final rule updating and revising its interpretation of joint employer status under the Fair Labor Standards Act (FLSA). The new rule simplifies the FLSA joint employer analysis with a four-factor test for determining whether workers are jointly employed by associated businesses or persons. … Continue Reading

New year, new changes to New York state’s minimum wage and tip credit rules

New York state rang in 2020 with a sweeping change to its minimum wage and tip credit rules that is expected to impact roughly 70,000 workers. On December 31, 2019, the New York State Department of Labor (the NYSDOL) recommended to Governor Andrew Cuomo that the state eliminate the tip credit for all miscellaneous industry … Continue Reading

Year in review: 2019 employment law changes in New Jersey

For employers in the Garden State, 2019 brought a barrage of legal changes and new requirements. As 2019 comes to a close, we recap some of the most significant changes to the employment landscape in New Jersey. Minimum wage In July 2019, the New Jersey minimum wage increased to $10 per hour. This number will … Continue Reading

The City of Pittsburgh publishes new information regarding the Paid Sick Days Act

The City of Pittsburgh has provided much needed clarity regarding several lingering questions concerning the Paid Sick Days Act (the Act), which requires all private employers of full- or part-time employees within the City of Pittsburgh to provide paid sick leave benefits. In July 2019, the Pennsylvania Supreme Court upheld the Act following a nearly four-year … Continue Reading

NLRB returns to past precedent in holding that employer’s duty to deduct union dues ceases when collective bargaining agreement expires

On December 16, 2019, in Valley Hospital Medical Center, Inc. d/b/a Valley Hospital Medical Center (368 NLRB No. 139 (2019)), the National Labor Relations Board (NLRB) overturned its 2015 decision in Lincoln Lutheran of Racine (362 NLRB 1655 (2015)), restoring the Board’s 50+ year precedent established under Bethlehem Steel (136 NLRB 1500 (1962), that there … Continue Reading

DOL final rule updates exclusions from employees’ regular rate

On December 16, 2019, the U.S. Department of Labor (DOL) published its first significant revision since 1968 to its interpretation of the calculation of the “regular rate” under the Fair Labor Standards Act (FLSA).[1] The regulations address whether certain fringe benefits must be included in calculating an employee’s regular rate for overtime purposes. With the … Continue Reading

Pennsylvania wage rules: Changes on the horizon

Shortly after the U.S. Department of Labor’s new overtime rule was finalized, the Pennsylvania Department of Labor and Industry (L&I) followed suit and finalized its own proposed overtime rule. Regulation 12-106 was set to exceed the new federal rule regarding the minimum salary to be paid to employees who are exempt from overtime. The new … Continue Reading

Maryland clamps down on non-competes

Maryland employers who wish to require their employees to sign a non-competition agreement beware. Effective October 1, 2019, non-competition agreements under Maryland law are valid only if the employee earns more than $15/hour or $31,200 annually. (See SB 328.) For employees who earn equal to or less than that, the agreement will be considered in … Continue Reading

New Jersey prohibits employers from asking about salary history

A part of the hiring process for many employers involves asking applicants about their prior salary and compensation information. Employers might use this information in deciding whether to make an offer to a particular candidate and the amount of compensation to offer the potential employee. However, beginning January 1, 2020, employers in New Jersey will … Continue Reading

DOL final overtime rule issued with few significant changes from 2019 proposed rule

On September 24, 2019, the U.S. Department of Labor (DOL) published a highly anticipated final rule that updates the salary thresholds necessary to qualify for overtime exemptions – often referred to as the “salary level test” – under the Fair Labor Standards Act (the 2019 Final Rule).[1] This rule will replace the prior final rule … Continue Reading

Eighth Circuit affirms working overtime can be essential job function

Overtime work is essential in many industries. As a result, employers frequently structure job roles to require mandatory overtime. Although mandatory overtime can present difficult questions when an employee has a disability that disqualifies them from working overtime, the Eighth Circuit Court of Appeals, in McNeil v. Union Pac. R.R., No. 18-2333, recently confirmed that … Continue Reading

California leads the way in passing landmark legislation to classify gig workers as employees

As we have previously reported here, California Assembly Bill 5 (the bill) is slated to codify the California Supreme Court’s 2018 landmark decision in Dynamex Operations West v. Superior Court of Los Angeles, requiring companies to apply the “ABC” test in classifying their workers. The ABC test requires that workers be considered “employees” instead of … Continue Reading

Fifth Circuit approves day rates for some highly compensated employees

The Fifth Circuit Court of Appeals issued an opinion last week holding for the first time that a “day rate” in excess of $455 paid to a highly compensated employee meets the requirements of the “salary basis” test under the Fair Labor Standards Act (FLSA). Specifically, in Faludi v. U.S. Shale Solutions, No. 17-20808, 2019 … Continue Reading

On the eve of Labor Day, a win for business from the NLRB

Today more than ever, U.S. businesses supplement their workforce with independent contractors as a solution to competitive and customer pressures. The use of contractors is entirely legal. But the correct classification of workers as contractors, as opposed to employees, is a complex analysis with frameworks that differ across a variety of governing laws. Employers, therefore, … Continue Reading

New York Continues Expansion of Worker Wage Protections (Part 2)

This is the second installment of our two-part blog series on recent wage-related changes to New York state law. In part one, we covered the expanded definition of retaliation under the New York Labor Law. Today, we will discuss a bill that permits employees to place wage liens on their employer’s property. Employees in New … Continue Reading

New York Continues Expansion of Worker Wage Protections (Part 1)

The New York state legislature recently passed two bills providing additional protections to employees asserting unpaid wage claims. These changes are the latest in the state’s overhaul of its employment law landscape this summer. As we discussed in previous posts, New York recently enacted limitations on the use of nondisclosure provisions in settlement and separation agreements, new standards for … Continue Reading

New Jersey increases wage protections and penalties for violations

Acting New Jersey Governor Sheila Oliver recently signed into law bill A-2903/S-1790, which includes sweeping changes to New Jersey civil and criminal provisions related to the payment of wages, including increased penalties and fines. A summary of the key provisions of this law is below. First, the law amends the Wage Payment Law, Equal Pay … Continue Reading

Pittsburgh employers: Immediately review your policies concerning the new Paid Sick Days Act

In 2015, the City of Pittsburgh enacted the Paid Sick Days Act (the “Act”), requiring all private employers of full or part-time employees within the City of Pittsburgh to provide paid sick leave benefits as follows: Employers with 15 or more employees must provide workers with up to 40 hours of paid sick time per … Continue Reading

Loss of holiday entitlement – higher hurdles for employers if they want to ensure that employees lose the right to claim outstanding holiday entitlement at the end of the calendar year

The German Federal Leave Act (Bundesurlaubsgesetz) provides that employees forfeit the right to claim outstanding holiday entitlement at the end of the calendar year or at the end of a specific transfer period; in other words, all holiday must be granted and taken beforehand. Under previous case law, this did even apply in the event … Continue Reading

New York Lawmakers Upend the Employment Law Landscape…Again (Part 4)

Today is the fourth in a five-part blog series on New York’s sweeping changes to the legal landscape for Empire State employers. In prior posts, we covered limitations on the use of nondisclosure provisions in settlement and separation agreements, the new standards for litigating and defending harassment claims, and expanded equal pay protections. Today, we … Continue Reading

Recording working time: do changes lie ahead?

The European Court of Justice (ECJ) has recently decided that the Working Time Directive (WTD) imposes an obligation on employers in all EU member states to record all working time, not just excess hours or overtime. This marks a significant departure from standard practice and may mean that employers will, in future, be required to … Continue Reading

Court of Appeal: holiday pay must include regular voluntary overtime

Does pay for regular voluntary overtime need to be included in the calculation of holiday pay? Yes, says the Court of Appeal in a decision which confirms several prior Employment Appeal Tribunal (EAT) decisions that the entitlement to holiday pay under the Working Time Directive (WTD) must include pay for regular voluntary overtime. As we … Continue Reading

Paid sick leave to take effect soon for employers in three cities in the Lone Star State

Employers in three major cities in the Lone Star State should begin preparing for compliance with paid sick leave ordinances. Joining a number of other states and cities to have enacted paid sick leave laws, the cities of San Antonio, Austin, and Dallas passed ordinances requiring private employers to provide employees with paid sick leave. … Continue Reading

Promising news for companies in the transportation industry

Companies in the transportation industry with operations in California have some positive news to celebrate. On May 3, 2019, in Anthony Ayala v. U.S. Xpress Enterprises, Inc., et al., the Central District of California granted partial summary judgment and dismissed a truck driver’s meal and rest period claims, finding that they were preempted by the … Continue Reading
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