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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…

On Tuesday, August 20, the Ninth Circuit Court of Appeals in a case entitled Murray v. Mayo Clinic, joined four other Circuit Courts of Appeal in holding that a “but for” causation standard applies in ADA discrimination claims.  This standard is considered to make it more difficult for employees to prove discrimination claims than…

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 opportunities. Often, intern candidates offer to work for free in exchange for the chance to gain experience in a job or industry.

Of course the idea, however enticing, of free labor should raise red flags. Many “for profit” business have run into trouble by failing to pay minimum wage and overtime pay to “unpaid interns” who the courts concluded were actually employees.
Continue Reading Are Employers Required to Pay Interns?

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 in place since 2004, is at least $455 per week or $23,660 annually.)
  • Employers be allowed to use nondiscretionary bonuses and incentive payments such as commissions that are paid at least annually to satisfy up to 10 percent of the salary threshold.
  • “Highly compensated employees” make at least $147,414 per year (compared with $100,000 under current law).
  • Going forward, the DOL commit to periodically reviewing and updating the minimum salary threshold (after a public notice and comment period).

Continue Reading Department of Labor Proposes Rule to Make More Employees Eligible for Overtime

No man’s life, liberty or property are safe while the legislature is in session.

· Judge Gideon J. Tucker

In the recently concluded session, Washington legislators enacted numerous laws that will adversely affect employers of all sizes across the State. With so many changes, it is key that employers stay up to date and understand the new challenges they will face in running their workplaces.

WASHINGTON HAS ‘BANNED THE BOX’ (2SHB 1298)

Washington is now firmly on the bandwagon to “ban the box,” barring questions about criminal convictions on initial employment applications.  Employers are now prohibited from inquiring into an applicant’s criminal background until the employee is determined to be otherwise qualified for the position.  The new law thus provides another area where employers have to tread carefully when rejecting applicants—an employer is much more baldly exposed to disparate impact claims arising from applicants rejected after the employer had determined they were otherwise qualified for the position.  The law includes several exceptions, including for law enforcement, employers whose employees would have unsupervised access to children or vulnerable adults, and other employers required by law to conduct criminal background checks.  The Attorney General’s Office is in charge of enforcing the law, and employers face an escalating system with increased fines for each subsequent violation.

Suggested Action: Remove any criminal background questions from job applications.  While the statute bars advertising that states “no felons” or “no criminal background” or the like, nothing precludes employers from advising applicants at the time they apply that they will have to pass a criminal background check once they have been determined to be qualified for the job.  Employers should monitor applicants screened out by the results of a criminal background check.  If an employer detects a disparate impact as a result of that screening, the employer should ensure that its actions are consistent with business necessity.
Continue Reading Washington Legislature Enacts Multiple Anti-Employer Statutes

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 exemption.  Now, President Trump’s DOL has formally announced that it will not pursue that rule.  Instead, it is soliciting comments to draft its own rule.

Employers have an opportunity to weigh in on what, if any, changes should be made to the white collar exemptions.  The DOL’s request for information suggests it is seriously considering making at least some changes to the exemptions. 
Continue Reading Department of Labor Seeks Input on New Rules for White Collar Exemptions

Last week, representatives of the business community and employee groups completed negotiations to create a paid family and medical leave insurance program in Washington. Many details need to be worked out, the actual legislation has not yet been drafted, and the Washington Legislature has a number of other issues demanding its attention. Nonetheless, there are substantial prospects that this compromise program will be enacted during this legislative session. If so, the Employment Security Department would begin collecting premiums in 2019, and benefits would become available in 2020.
Continue Reading Washington State to Consider Paid Family Leave

“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 business factors, like experience, education, and merit, as well as prior salary history.  The Oregon Equal Pay Act (the “Act”), which was unanimously approved by the legislature and is expected to be signed into law by Governor Kate Brown this week, will prohibit employers from asking job applicants about past salary history.
Continue Reading Time to Revise Your Job Applications: Oregon Prohibits Salary History Inquiries in Effort to Address Systemic Wage Inequality

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 competing for state and local contracts if they have “willfully” violated select wage statutes in the past three years.  Employers with such violations are deemed not to be “responsible bidders” and are disqualified from obtaining public works projects.  SB 5301 passed with bi-partisan support.
Continue Reading Washington State Enacts Its Own “Blacklisting” Statute