Archives: Wage and Hour

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California Supreme Court: Meal and rest break premiums must be paid at regular rate of pay; applies retroactively

In Ferra v. Loews Hollywood Hotel, LLC, the California Supreme Court departed from the longstanding view that non-exempt employees’ meal and rest break premiums are paid at the employee’s base hourly rate, rather than the employee’s regular rate of pay used to calculate overtime pay. Instead, the Court held that the phrase “regular rate of … Continue Reading

New Jersey continues its war on worker misclassification

In early 2020, New Jersey Governor Phil Murphy signed a series of bills aimed at identifying and penalizing entities for misclassification of employees as independent contractors. Yesterday, Governor Murphy signed four additional laws into effect to build upon and expand these efforts: A5890, A5892, A5891, and A1171. These laws build upon prior efforts, with a … Continue Reading

Illinois’ new non-compete restrictions expected to become law

On May 31, 2021, the Illinois legislature passed SB 672, a bill that amends the Illinois Freedom to Work Act, the state’s non-compete statute. Governor J.B. Pritzker is expected to sign the bill into law. SB 672 would apply to restrictive covenant agreements entered into after January 1, 2022, and introduces a number of new … Continue Reading

Connecticut updates its salary history inquiry and pay equity laws

On June 7, 2021, Connecticut Governor Ned Lamont signed legislation amending the state’s existing salary history inquiry and pay equity statutes. As we discuss below, this amendment – which goes into effect on October 1, 2021 – places additional obligations on Connecticut employers and modifies the existing standard for pay equity claims in the state. … Continue Reading

New York State Department of Labor confirms that New York State paid sick leave applies to COVID-19 vaccine recovery time

As we previously reported, over the past year, New York State has adopted a statewide sick leave law, paid leave for COVID-19 vaccination, and paid quarantine leave.  Last week, the New York State Department of Labor (NYSDOL) issued guidance on the use of New York State Sick Leave (NYSSL) as it pertains to employees receiving … Continue Reading

Virginia adopts new laws effective July 1 that continue to transform the employment landscape

Following last year’s wave of new employment laws (previously covered as follows: Part 1, Part 2, and Part 3), Virginia has adopted a variety of new laws that will take effect July 1 and continue to transform the Commonwealth’s employment law landscape. Virginia employers should carefully review these new laws to ensure compliance in this … Continue Reading

Reminder to New Jersey employers: NJ WARN changes on the horizon

Shortly before the COVID-19 pandemic took hold, in January 2020, Governor Murphy signed into law sweeping changes to New Jersey’s mini-WARN act. The first-of-its-kind law in the nation required mandatory severance payments for employees who lost their jobs in a mass layoff. We discussed details of the changes here. The law was scheduled to take … Continue Reading

Ninth Circuit reverses preliminary injunction: California’s independent contractor law applies to motor carriers

In a split 2-1 decision, the Ninth Circuit Court of Appeals reversed the district court’s order preliminarily enjoining enforcement of California’s Assembly Bill (AB) 5 in California Trucking Association et al. v. Bonta (CTA). If this ruling is not appealed, AB 5, which is chaptered in the California Labor Code under 2750.3, will no longer … Continue Reading

Cal-OSHA released proposed revisions to the COVID-19 prevention order

UPDATE on May 20, 2021: Since this article was published, Cal/OSHA has delayed the vote on the new proposed Emergency Temporary Standards. Please read details on the delayed vote on the Reed Smith EHS Law Insights Blog. As vaccination rates increase in California, the California Department of Occupational Safety and Health (Cal-OSHA) has released a … Continue Reading

Department of Labor withdraws pro-business independent contractor final rule

As we previously reported here and here, in January 2021 the U.S. Department of Labor (DOL) proposed a business-friendly final rule concerning the classification of workers as independent contractors under the Fair Labor Standards Act (FLSA).  The final rule, which was scheduled to take effect in March 2021 (but never did), reaffirmed the use of … Continue Reading

California requires new COVID-19 Supplemental Paid Sick Leave in 2021

On March 19, 2021, Governor Newsom signed Senate Bill 95 (SB 95), which creates, in part, new Labor Code Section 248.2.[1] As a reminder, Governor Newsom previously signed AB 1867, which added Labor Code sections 248 and 248.1 to provide COVID-19 Supplemental Paid Sick Leave to food sector workers and employees who worked for employers … Continue Reading

Congress extends payroll tax credits to employers voluntarily providing FFCRA paid leave and expands leave provisions

As of January 2021, providing FFCRA paid leave is optional. Employers choosing to provide FFCRA Paid Leave to their employees on a voluntary basis can now receive a payroll tax credit to cover the wages paid through September 30, 2021 (subject to applicable caps).  Last year, in response to the COVID-19 Pandemic, Congress passed the … Continue Reading

New York to provide paid leave for COVID-19 vaccination

On March 12, Governor Andrew Cuomo signed into law a bill requiring that all public and private employers in New York State provide their workforces with up to four hours of paid time off to receive the COVID-19 vaccine. More particularly, the law requires that Empire State employers provide their employees with “a sufficient period … Continue Reading

California Supreme Court rejects rounding time for meal breaks

On February 25, 2021, the California Supreme Court decided Donohue v. AMN Services, LLC (Donohue).  In that case, the court held that (1) employers cannot round time in the meal period context and (2) time records showing noncompliant meal periods raise a rebuttable presumption of a meal period violation.  Accordingly, the court’s decision has significant implications … Continue Reading

Managing the risks of incentivizing COVID-19 vaccines for employees

The release of the COVID-19 vaccine came as welcome news for employers. With it, however, employers will now confront myriad new questions about how the vaccine will affect workplace terms and conditions. The foremost question across all sectors has been simple: Can and should employers mandate that their employees get vaccinated? While issuing a mandate … Continue Reading

New York employers may be “exposed” to COVID-19 workers’ compensation claims

In September 2020, the New York Workers’ Compensation Board (WCB) issued guidance related to COVID-19 claims and their compensability under the State’s workers’ compensation laws. This guidance is especially noteworthy because workers’ compensation claims are expected to increase substantially as a result of COVID-19. By way of background, New York is one of the few … Continue Reading

U.S. Department of Labor finalizes rule creating a new “reality” for classifying independent contractors

As we previously reported, this past September the U.S. Department of Labor (DOL) proposed a new rule that would create a uniform approach to the way companies classify workers as independent contractors or employees under the Fair Labor Standards Act (FLSA). More specifically, in the proposed rule, the DOL adopted the “economic reality” test, which … Continue Reading

New York City passes key amendments to paid safe and sick leave law

New York City first adopted a local paid sick leave law in 2014. Over the ensuing six years, the City legislature amended the law several times, including in 2018 to add “safe leave” as a form of paid time off. Late last month, the City amended the Earned Safe and Sick Time Act (ESSTA) yet … Continue Reading

DOL issues new final rule and updated guidance for employers who use the fluctuating workweek method to calculate overtime

On May 20, 2020, the U.S. Department of Labor (DOL) published a final rule explaining that bonuses and other incentive payments—paid in addition to an employee’s weekly salary—are compatible with the fluctuating workweek (FWW) method of calculating overtime under the Fair Labor Standards Act (FLSA). The final rule went into effect on August 7, 2020. … Continue Reading

California requires new COVID-19 supplemental paid sick leave

On September 9, 2020, Governor Newsom signed Assembly Bill (AB) 1867 into law, adding section 248.1 to the Labor Code. Under this new section, “hiring entities” are required to provide supplemental COVID-19 paid sick leave (CPSL) to “covered workers.” This is in addition to any paid sick leave that may be available to the covered … Continue Reading

New York federal judge nixes U.S. Department of Labor’s new “joint employer” rule

Earlier this year, the U.S. Department of Labor (DOL) issued a rule updating its interpretation of the “joint employer” doctrine under federal wage and hour law.  Yesterday, however, a New York federal judge struck down a significant portion of the rule.  Judge Gregory H. Woods’ 62-page decision delivers a significant blow to businesses that had … Continue Reading

New York’s healthy terminals act may create additional wage and benefits obligations for airport employers

Airport workers at John F. Kennedy (JFK), LaGuardia (LGA), and New York Stewart International Airport (SWF-Stewart Intl.) may soon be receiving increased wages and benefits under the Healthy Terminals Act (the “Act”) (Senate Bill S6266D).  Spurred by the COVID-19 related death of a JFK airport worker, the Act recently passed both the New York State … Continue Reading

Everything you need to know about New York’s forthcoming statewide paid sick leave law

The enactment of paid sick leave laws began as a state and local employment law trend roughly a decade ago, gaining substantial momentum in the mid-2010’s.  Amidst this wave, New York City adopted a paid sick leave law in April 2014.  The City Council later amended the law – in May 2018 – to provide … Continue Reading

Are your sales employees exempt? DOL provides guidance in three new opinion letters

The Department of Labor’s (DOL’s) Wage and Hour Division recently issued three new opinion letters addressing the Fair Labor Standards Act’s (FLSA’s) sales exemptions. Two letters address the outside sales exemption, and the third addresses the retail or service establishment exemption. FLSA2020-6: Do salespeople who travel to different locations to sell their employers’ products using … Continue Reading
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