News & Analysis as of

Pennsylvania Issues Regulations Under Excessive Overtime in Health Care Act

On July 19, 2014, the Pennsylvania Department of Labor and Industry published new regulations to implement certain provisions of the Prohibition of Excessive Overtime in Health Care Act, 43 P.S. §§ 932.1 to 932.6 (the "Act")....more

Late Payment Resulted In An FLSA Violation

A recent decision by the U.S. Court of Claims underscores important propositions under the federal Fair Labor Standards Act to the effect that: - Failing to pay non-exempt employees the FLSA-required minimum-wage or...more

California Supreme Court Limits the Use of California's Commissioned Salesperson Exemption

The California Supreme Court recently released an important decision regarding California's "commissioned salesperson" exemption. To qualify for this exemption to California's overtime laws, an employee must: (1) earn at...more

Update on Orozco v. Plackis: was franchisor’s principal the employer of franchisor’s employee? Fifth Circuit reverses – 3...

We reported in September 2013 about Orozco v. Plackis, a case out of the United States District Court for the Western District of Texas in which the plaintiff (a cook in a franchised restaurant) filed an action under the Fair...more

Second Circuit Finds that Entry-Level Audit Associates at Accounting Firm are Exempt from Federal Overtime Requirements

In Pippins v. KPMG LLP, No. 13-889 (2d Cir. July 22, 2014), the Second Circuit Court of Appeals unanimously held that entry-level audit associates (“Plaintiffs”) at KPMG LLP qualify for the Fair Labor Standards Act’s (“FLSA”)...more

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

Financial Advisors Advance Their Cause for Overtime Pay

According to Judge Frank Maas of the U.S. District Court for the Southern District of New York, the first step was taken in the settlement process between Merrill Lynch & Co. and over 500 field financial advisors. Recently...more

Remember to Calculate Overtime Pay Based on Your Employees' "Regular Rate of Pay"

When a non-exempt employee is entitled to overtime compensation, the hourly rate of pay from which the overtime compensation is calculated is known as the employee's "regular rate of pay." If an employee subject to...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

More Good News for California Employers Who Utilize Employee Arbitration Agreements

On the same day the California Supreme Court upheld an arbitration agreement containing a class action waiver in Iskanian v. CLS Transportation of Los Angeles, LLC, the Ninth Circuit Court of Appeals upheld employment...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

An Update on "Overtime" Class Actions

Since 2012, “overtime” class actions have been successfully certified in Ontario but were limited to certain areas. Recent additional certification success suggests we are likely to see more such claims. At a basic...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

Once An Employee – Never A Volunteer

It should be obvious that employees cannot be required to perform services for their employers as “volunteers.” This is properly seen by the Department of Labor as a ruse to avoid paying wages or overtime. By contrast,...more

New Decision Clarifies Summary Judgment Standards for Off-the-Clock Claims

On May 20, 2014, the First District Court of Appeal in Jong v. Kaiser Foundation Hospitals, issued a decision affirming the summary judgment granted as to one of the individual class representatives in a putative class action...more

Government Contracts Quarterly Update - May 2014

The Government Contracts Quarterly Update is published by BakerHostetler’s Government Contracts Practice Group to inform our clients and friends of the latest developments in federal government contracting. In This...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

California District Court Rejects Overtime Settlement Over $50,000 Incentive Awards

Large incentive awards continue to jeopardize class action settlements. We wrote on February 14 about recent cases in which Circuit Courts rejected settlements due to disproportionate incentive awards. A recent case from the...more

Looking Into My Crystal Ball At The Future Of FLSA Regulations

Last month, I wrote about the Obama Administration’s Presidential Memorandum to the U.S. Department of Labor (DOL) instructing its Secretary to update regulations regarding overtime protection for workers under the Fair Labor...more

In Germany, the Burden of Proof Is on Employees if an Employee Wants to be Compensated for Requested Overtime

If a German employee claims special payment for overtime he has performed, it is the employee who has the burden of proof regarding the following requirements...more

The Time-and-a-Halfs They Are A ‘Changin’

Earlier this month, President Obama directed the U.S. Department of Labor to update the federal overtime pay regulations by revising the salary component of the executive, administrative, and professional exemptions. To...more

Obama Calls For Revisions Of "White-Collar" FLSA Overtime Exemptions

In an unexpected move, the Obama administration officially announced that it will issue a Presidential Memorandum to the U.S. Department of Labor (DOL) instructing its Secretary to update regulations regarding overtime...more

Secretary of Labor Directed to Update Federal Overtime Rules

In a brief memorandum recently issued to the Secretary of Labor, President Obama directed the Department of Labor (DOL) to update federal overtime rules. As noted in the memorandum, the Fair Labor Standards Act (FLSA)...more

President Obama Announces Initiative to Increase Minimum Salary for Employees Exempt From Overtime Requirements

Faced with continuing Congressional refusal to consider an increase to the minimum wage, on Wednesday, President Obama announced his intent to direct the Department of Labor to consider raising the minimum weekly salary...more

A closer look at the expansion of overtime

Last week’s announcement by President Obama of a planned increase to the number of employees who would be entitled to receive overtime pay set off a barrage of reactions. Now, let’s take a closer look at what it is all about....more

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