As expected, the U.S. Department of Labor (DOL) has repealed the Trump-era rule regarding classification of independent contractors. As we discussed here, the Trump-era rule codified the “economic realities test” for use when analyzing whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). Labor advocates criticized the … Continue Reading
Late last week, the U.S. Department of Labor (“DOL”) announced that it plans to rescind the Trump DOL rule that tightened the standards by which two or more companies could be deemed a joint employer for purposes of the Fair Labor Standards Act (“FLSA”). The same day, the DOL announced its plans to withdraw the … Continue Reading
It’s common knowledge that an employee’s overtime rate is “time and a half” the regular rate of pay. But that truism begs the question: what exactly is the regular rate of pay? Earlier this week, the Ninth Circuit analyzed whether the Fair Labor Standards Act (“FLSA”) required a company to include per diem payments that … Continue Reading
The U.S. Department of Labor (“DOL”) published a final rule addressing independent contractor status under the Fair Labor Standards Act (“FLSA”). Independent contractor status is a critical question under the FLSA because eligible employees are entitled to the law’s protections (for example, minimum wage and overtime for non-exempt employees) but independent contractors are not. Incorrectly … Continue Reading
After a lengthy and contentious rulemaking process, the Department of Labor (“DOL”) published its final rule revising its tipped-employee regulations under the Fair Labor Standards Act (“FLSA”) last week. The new rules take effect 60 days from their publication in the Federal Register, which will occur shortly. Here is a summary of the new rules’ … Continue Reading
The U.S. Department of Labor announced today that an estimated 1.3 million workers will soon be eligible to receive overtime or be in line for a raise. Effective January 1, 2020, the minimum salary threshold for the “white-collar” exemptions under the Fair Labor Standards Act will be $684 per week or $35,568 per year, an increase from … Continue Reading
Spring is in the air and summer is around the corner. You can see the signs everywhere. Flowers. Chirping birds. Increasing temperatures. And summer intern resumes. Experienced HR professionals know they will soon receive many resumes from eager students or recent graduates hoping to work as interns in order to gain valuable experience and networking … Continue Reading
On March 22, the Department of Labor (“DOL”) published a new proposed rule that would make several changes to current overtime law. The proposed rule, which is not yet in effect, would require that: Employees make at least $679 per week ($35,308 annually) to potentially be exempt from overtime. (The current requirement, which has been … Continue Reading
Employers know that the salary rule for “white collar” exemptions from President Obama’s Department of Labor (“DOL”) was blocked by a federal court last year (we blogged about that here). (UPDATE: A Texas federal court invalided the rule on August 31, 2017.) That rule would have more than doubled the salary requirement for an overtime … Continue Reading
“Equal pay for equal work.” Everyone – employees and employers alike – can agree that no workers should be paid less than others simply because of their gender, race, veteran status, or any other protected characteristic. But the reality of the pay gap is more complicated. Employers make salary decisions based on a number of … Continue Reading
Although federal contractors were able to breathe a sigh of relief after the current administration put a stop to President Obama’s “Blacklisting” executive order, employers in the state of Washington must now comply with their own “blacklisting” law. On May 8, Washington state signed into law Senate Bill 5301 (“SB 5301”), which bans employers from … Continue Reading
In Mendoza v. Nordstrom, the California Supreme Court answered three questions from the Ninth Circuit concerning California’s “day of rest” statutes. The Court’s decision clarifies a significant ambiguity for employers regarding the obligation to provide employees with their statutorily mandated day of rest. Mendoza involved a putative class action filed by former Nordstrom employees alleging … Continue Reading
On December 5, 2016, Berger v. National Collegiate Athletic Association brought a major setback for those advocating that “student athletes” deserve to be compensated for their contributions to the multi-billion-dollar industry of college sports. The plaintiffs were two former “student athletes” at the University of Pennsylvania (“Penn”) who participated on the women’s track and field team. … Continue Reading
The Department of Labor’s controversial rule that required “white collar” employees to be paid at least $47,476 per year in order to be exempt from the Fair Labor Standards Act will NOT go into effect on December 1, 2016 as planned (we wrote about the rule here). A Texas federal judge on Tuesday agreed with 21 … Continue Reading
In the wake of the election results, the question on everyone’s mind now is: What impact will President-Elect Trump have on employers? Trump has thus far given few details on his thoughts on labor and employment. But with Republicans maintaining control of Congress, employers could see a lot of changes in the next couple of … Continue Reading
The Department of Labor’s new rule that doubles the salary threshold for “white collar” exempt employees goes into effect December 1, 2016. Under that rule, employees currently exempt under the FLSA as an administrative, executive, or professional employee must make a salary of at least $47,476 and meet the appropriate “duties test” in order to remain exempt … Continue Reading
On September 12, 2016, California Governor Jerry Brown signed AB 1066. The bill, which is the first of its kind in the nation, will entitle California farmworkers to the same overtime pay as most other hourly workers in California. California law defines employees “employed in an agricultural occupation” broadly to include any employment relating to … Continue Reading
Earlier this year, we wrote about the Ninth Circuit Court of Appeals decision in Oregon Rest. & Lodging Ass’n v. Perez, which prohibited tip-pools that include “back-of-the house” employees. Last week, the Court rejected a petition to review the decision en banc. This means that, unless the Supreme Court weighs in on the issue, restaurants in the Ninth Circuit … Continue Reading
In Oregon Rest. & Lodging Ass’n v. Perez, the Ninth Circuit ruled this week that federal law restricts a restaurant employer from maintaining a tip pool that includes “back-of-the-house” employees and requires directly tipped employees to share their tips, regardless of whether a tip credit is taken and employees are paid at least minimum wage. … Continue Reading
As colleges and universities begin new terms, not all students are returning to the classroom. Some students are headed into the “real world,” to work alongside corporate titans, small-business owners, or moms and pops in their shops, while receiving academic credit—and not wages—for their efforts. These students are applying the lessons learned in their prior … Continue Reading
Coming to a store or restaurant near you soon! Supervisors will get overtime! “Too many Americans are working long days for less pay than they deserve.” —President Obama on overtime pay http://t.co/Y4yThJ1K2g — Barack Obama (@BarackObama) June 30, 2015 To be exempt from minimum wage and overtime requirements, currently a worker must perform certain duties … Continue Reading
The U.S. Supreme Court, in a rare unanimous decision earlier this week in Integrity Staffing Solutions v. Busk, held that time spent by warehouse employees at Amazon.com warehouses waiting to go through security checks at the end of their shifts was “postliminary” activity not compensable under the federal Fair Labor Standards Act (“FLSA”) and its … Continue Reading
Last week, the 9th Circuit held in two related cases from California and Oregon that FedEx misclassified approximately 2,600 delivery truck drivers as independent contractors, rather than as employees. The cases—Alexander v. FedEx and Slayman v. FedEx—are an important reminder for employers that reality matters more than labels when it comes to classifying workers. On that … Continue Reading
Today the US Supreme Court issued its long-awaited opinion in Genesis Healthcare v. Symczk. In the case, the Court held that employers could effectively end collective action lawsuits under the Fair Labor Standards Act (FLSA) by agreeing to pay the named plaintiffs in those lawsuits whatever they claim they are owed. The Court held that because the … Continue Reading