It’s that time of year to prepare for minimum wage increases and update workplace posters. Beginning July 1, minimum wage rates throughout Oregon increase, to $14.00 for Portland Metro, $12.00 for Nonurban Counties, and $12.75 as Standard. (See here for descriptions of the areas in each category.) BOLI’s 2021-2022 Commonly Required Postings in Oregon
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. Their lawsuit alleged that “student athletes” were employees under the Fair Labor Standards Act (“FLSA”) and that Penn, along with the National Collegiate Athletic Association (“NCAA”) and over 100 other Division I universities, was violating minimum wage laws by not compensating “student athletes.” The district court dismissed their lawsuit, finding that the plaintiffs had no standing to sue any colleges other than Penn and that “student athletes” were not employees under the law.
On appeal, the Seventh Circuit affirmed the decision. Briefly addressing the issue of standing, the court found that the plaintiffs’ connection with the NCAA and other colleges was “far too tenuous to be considered an employment relationship.” Turning to the real issue—whether the plaintiffs are employees of Penn—the plaintiffs argued that the court should use the Second Circuit’s intern test to determine if they were employees.
Continue Reading Another Setback for Student Athletes … or Is It?
On November 8, 2016, Washington voters approved Initiative 1433, amending certain sections of Washington’s wage and hour laws to impose two significant requirements on employers within the state: an increase in the minimum wage and mandatory paid sick leave.
Continue Reading Washington Employers Face Minimum Wage Increase and Mandatory Paid Sick Leave
Oregon’s new minimum wage law, signed by Governor Brown on March 2, 2016, received a lot of press during the 2016 legislative session. This new law establishes a tiered system for determination of the minimum wage based on the location of the employer. The minimum wage will increase annually on July 1 of each year, with the first increase (from $9.25 to $9.50 in rural areas and to $9.75 everywhere else) taking place this year. By 2022, Oregon’s minimum wage will increase to $14.75 inside Portland’s urban growth boundary, $13.50 in midsize counties, and $12.50 in rural areas. The full text of the enrolled Senate bill is available here.
With minimum wage receiving all of the attention, Oregon employers may have missed other employment-related bills. Here are the bills that passed during the 2016 Oregon Legislative Session and those that failed (but we might see again in the future).
Continue Reading 2016 Oregon Legislative Update: What You Might Have Missed
On May 2, 2016, The U.S. Supreme Court declined to hear the legal challenge to the Seattle Minimum Wage Ordinance’s impact on Seattle franchisees (IFA v. Seattle–denial of cert). We have blogged about Seattle’s Minimum Wage Ordinance (“Ordinance”) before. The Ordinance requires large businesses, defined as those with more than 500 employees, to…
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.
The FLSA permits an employer to count a tipped employee’s tips toward its hourly minimum wage obligation. This is known as a “tip credit.” Section 203(m) of the FLSA requires employers who take a tip credit to give notice to employees and allow employees to retain all of the tips they receive, unless such employees participate in a valid tip pool. Under section 203(m), a tip pool is valid if it is comprised exclusively of employees who are “customarily and regularly” tipped, commonly referred to as “front-of-the-house” employees.
The employers in Oregon Rest. & Lodging Ass’n, however, did not take a tip credit against their minimum wage obligation. (Indeed, Oregon does not permit a “tip credit,” and requires that all employees receive the state-mandated minimum wage.) Rather, the employers in Oregon Rest. & Lodging Ass’n paid their tipped employees at least the federal minimum wage and required their employees to participate in tip pools. Unlike the tip pools contemplated by section 203(m), however, these tip pools included both front- and back-of-the-house employees.Continue Reading Ninth Circuit Declares Tip Pools Invalid Under FLSA Even Where Employers Pay More Than Minimum Wage
Joining over a dozen other California cities that have adopted or are considering adopting a local minimum wage, the Sacramento City Council has voted to approve an ordinance that will raise the City’s minimum wage. Under the ordinance, the minimum wage in Sacramento will increase to $10.50 by 2017, $11.00 by 2018, $11.75 by 2019,…
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…
It’s that time of year again, here’s our post from last year from Matt Durham on this perennial summer concern for employers . . .
Certain things have become the recognizable signs of spring. Budding leaves. Flowers. Chirping birds. And summer intern resumes. Especially during a slow or recovering economy, HR professionals are likely to…
The Oregon Bureau of Labor and Industries recently announced that Oregon’s minimum wage will increase by ten cents to $8.50 an hour effective January 1, 2011. Oregon’s minimum wage has been $8.40 an hour since January 1, 2009. Click here to read Labor Commissioner Brad Avakian’s press release on the minimum wage increase.