News & Analysis as of

Arizona District Court Rejects Joint Employer Arguments in Independent Contractor Case Alleging Misclassification of Truck Drivers

A month ago we discussed the Ninth Circuit’s decision in Ruiz v. Affinity Logistics Corp., Case No. 12-56589 (9th Cir. June 16, 2014), in which the employer treated its delivery drivers as employees in everything but name,...more

Department of Labor to Revise Federal Regulations Interpreting the Right to Receive Overtime Pay under the Fair Labor Standards...

In a March 2014 Memorandum, President Obama directed the Department of Labor to “modernize and streamline” the regulations that dictate when an employer may lawfully designate an employee as exempt from overtime pay under the...more

California Supreme Court Clarifies Requirements of Commissioned Employee Exemption

In recent years there has been substantial litigation regarding whether and how employers may satisfy California minimum wage requirements for compensation plans involving commissions. In Peabody v. Time Warner Cable, Inc.,...more

Dispelling Employment Myths Series – Issue 5: Not Entitled to Overtime

Ever play the game telephone? It’s a game in which one person whispers something into the ear of the next person, and that person is supposed to whisper the same thing into the ear of the next person, and so on. When the...more

New Department of Labor Rule to Limit Live-In Employees Eligible for Exempt Status

The Fair Labor Standards Act (FLSA) has long provided an exemption for overtime wages to employees engaged in "companionship services," such as in-home caretakers who sleep at their patients' homes. Recently, however, the...more

Are Your Sales Employees Properly Classified as Exempt?

Many employers treat their sales employees as exempt from the Fair Labor Standards Act's overtime and minimum wage requirements. Regardless of whether they pay them a salary, commissions, or some combination of both,...more

California Supreme Court Issues Favorable Decision for Employers in Duran v. U.S. Bank

The California Supreme Court has issued its long-awaited decision in Duran v. U.S. Bank. In a significant victory for employers, the Court unanimously agreed to overturn a $15 million judgment in a wage and hour class action...more

FLSA Overtime, Minimum Wage Lawsuits Continue to Skyrocket

My colleagues and I talk regularly about the ever-increasing number of wage and hour cases alleging violations of minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA). ...more

Court Approves FLSA Settlement that Extinguishes Related State Law Claims

When an employer settles a collective action lawsuit under the Fair Labor Standards Act (FLSA), may the settlement agreement also include a release of any rights to overtime pay which the plaintiffs may have under state law?...more

Department of Labor Sets FLSA Regulation Deadline for November 2014, Final Regulations Unlikely to Arrive Before Spring 2015

Recently, we told you that President Obama had issued a Presidential Memorandum to the U.S. Department of Labor (DOL) instructing its Secretary to update regulations regarding overtime protection for workers under the Fair...more

SuperVision Today - May 2014

Notes from the Chair and Executive Editor - Welcome to the second quarter edition of SuperVision Today, the quarterly e-newsletter published by Spilman's Labor & Employment Group. Readers of this newsletter are invited...more

Thinking about Hiring Interns? New Case Reminds Employers of Rules on Interns

Following similar decisions involving Hearst Corporation and Viacom, a federal judge in the Southern District of New York recently granted conditional certification of a potential nation-wide class of approximately 3,000...more

Rebuking “Trial by Formula,” Federal Court Decertifies Rule 23(b)(3) Class Action

In Stiller v. Costco Wholesale Corp., No. 3:09-cv-2473-GPC-BGS, Plaintiffs Eric Stiller and Joseph Moro alleged that Costco’s loss-prevention closing procedures effectively “forced” employees to work off-the clock without...more

Supreme Court To Decide Whether Employers Must Pay Workers for Security Checks

The U.S. Supreme Court recently agreed to hear a case brought by a group of temporary warehouse employees seeking pay for time spent going through mandatory security checks at the end of their work shifts. The workers are...more

Take 5 Newsletter: Five Hot Topics in Hospitality Law

ACA Final Regulations Provide Rules for Seasonal Employees - On February 10, 2014, the Internal Revenue Service ("IRS") promulgated final regulations for the ACA's employer "shared responsibility provisions" in IRS...more

President Obama to Order Expansion of Overtime Pay

President Obama is expected to issue an order today directing the Department of Labor to expand the number of people who qualify for overtime pay under federal labor law. According to reports in the Washington Post and other...more

Is an End-of-Shift Security Clearance Compensable? The Supreme Court Will Decide Next Term

On Monday, March 3, 2014, the Supreme Court of the United States agreed to decide whether a company was required to pay overtime compensation to its workers for the time they spent passing through a security clearance at the...more

Employees Seek To Take Bite From Apple (and Urban Outfitters)

Chances are that if you ask someone what they remember from the cult-classic Paul Verhoeven film Total Recall, they’ll recall (among other things) the sequence where Arnold Schwarzenegger attempts to sneak through security....more

Classification for Overtime Eligibility: Internet Specialists

With the proliferation of network, Internet and management information systems, it is essential for businesses to understand employment classifications — especially in terms of overtime payment — for personnel who manage high...more

New York Federal District Court Endorses Use of Fluctuating Workweek Overtime Payment Method Where Employer Pays Performance-Based...

True story: the other day I was speaking with a friend in the HR realm and I asked him whether he was familiar with the fluctuating workweek. He jokingly answered: “does that have anything to do with my weight gain during the...more

Are Your Non-Exempt Employees Properly Compensated for All of Their Work Time?

Employers are continuing to be bombarded by collective or class action lawsuits filed by their non-exempt employees for alleged violation of the Fair Labor Standards Act (“FLSA”), and similar state wage and hour laws. Many of...more

It's Official - Offering Full Monetary Relief Without A Judgment Will Not Moot FLSA Case

Last year we reported on the Eleventh Circuit's decision in Zinni v. ER Solutions, Inc. (11th Cir., August 27, 2012), which seemed to signal that a defendant in a Fair Labor Standards Act case cannot moot the case by...more

How To Calculate Unpaid Overtime: Fifth Circuit Rules In Favor of FWW

In an appeal concerning the correct calculation of overtime damages due to employees misclassified as exempt, the Fifth Circuit Court of Appeals emphatically slammed the door on a trial court’s attempt to require an employer...more

Hospitality Update, No. 3, September 2013: Court Rejects "Al Capone Defense" To FLSA Violations

On July 29, a federal appeals court addressed the question of whether the Fair Labor Standards Act’s minimum wage and overtime protections apply to undocumented aliens working illegally for an employer. Drawing on an analogy...more

California Governor Signs Bill Limiting Attorneys’ Fees for Employers in Wage Cases

California Governor Jerry Brown on August 28, 2013, signed into law a measure limiting the ability of employers to obtain attorneys’ fee awards if they are prevailing defendants in wage disputes. Senate Bill (SB) 462...more

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