Wage and Hour

News & Analysis as of

Employment Newsletter - April 2014: Tips, Tip Pooling and Service Charges: Developments & Guidelines

Mandatory service charges and their distribution among waitstaff have plagued the Hospitality industry for years. Federal courts interpret federal laws differently, and states have enacted their own statutes that keep...more

Russell v. Citigroup Inc. – Language in Revised Arbitration Agreement Torpedoes its Application to Pending Class Action

A Sixth Circuit panel found the text of an updated arbitration agreement indicated it did not apply to a wage and hour class action already pending when the agreement was signed. Russell v. Citigroup, Inc., Case No. 13-5994...more

Are you complying with your reporting and notification obligations for unclaimed wages?

As employers, you have so many reporting requirements I know the last thing you want to hear is that there’s another one you may need to factor in. But, as lawyers it’s our job to sometimes be the bearer of bad...more

Increasing Pay Transparency Among Federal Contractors

On April 8, 2014, U.S. President Barack Obama signed a pair of executive actions aimed at increasing transparency about wages among federal contractors. The administration believes that increasing transparency will provide a...more

District Court Extends Fifth Circuit’s Naquin Decision to Barge Cleaning/Repair Employee

As previously reported (regarding the Naquin decision), the Fifth Circuit recently expanded the scope of Jones Act seaman status to include a shipyard worker who spent 70% of his time working aboard vessels (usually moored to...more

Hearing date set for important holiday pay calculation cases

Kate Hodgkiss, Partner in our Edinburgh office, comments: The EAT has now listed the cases of Bear Scotland Ltd v Fulton and Neal v Freightliner Ltd to be heard on 30 and 31 July 2014. The EAT’s findings will determine...more

Third Circuit Embraces Successor Liability for Wage-and-Hour Violations of the Fair Labor Standards Act

In a recently decided case, Thompson v. Real Estate Mortgage Network, Case No. 12-3828 (3d Cir. Apr. 3, 2014), the Third Circuit Court of Appeals determined for the first time that a successor-employer may be held financially...more

Hope Springs Eternal . . . Except for a Volunteer at Major League Baseball’s FanFest on the Losing End of a Wage and Hour Class...

In baseball, the beginning of spring means hope for fans of even the most hard luck teams. Unfortunately for one erstwhile fan, the first days of spring ushered in a dismissal of his putative wage and hour class action. The...more

Obama Requests Increased OFCCP Funding in FY 2015 Budget

On March 4, 2014, Secretary of Labor Thomas Perez released OFCCP’s FY 2015 budget request, which includes a request for over $107 million in funding for OFCCP’s operations. This amount represents a $3 million increase over...more

Obama Issues Executive Order and Presidential Memorandum Concerning Equal Pay Initiatives for Federal Contractors

Yesterday, President Obama issued an Executive Order and Presidential Memorandum intended to address equal pay for women. The Executive Order prohibits federal contractors from retaliating against an applicant or employee...more

Sex, Pay, and Retaliation: The White House Weighs In Again

President Obama directed U.S. Secretary of Labor Thomas E. Perez to propose a rule requiring that federal contractors submit summary compensation data to the U.S. Department of Labor (DOL) and issued an executive order...more

FLSA Does Not Prohibit Mandatory Individual Arbitration of Claims

Employers concerned about the cost and unpredictability of the civil judicial system may elect to require binding individual arbitration of disputes with their employees. In response, employees trying to get their claims...more

Obama Administration Expected To Expand Wage And Hour Protections, Disclosures For Federal Contractors' Employees

Recently, we told you about President Obama’s Executive Order increasing the minimum wage for employees of federal contractors to $10.10 per hour. Tomorrow, President Obama is expected to announce that he will sign two new...more

Disinformation And The "Tipped-Employee Minimum Wage"

A White House report promoting a substantial jump in the federal Fair Labor Standards Act's minimum wage perpetuates now-widely-disseminated propaganda about an alleged "tipped employee minimum wage" of $2.13 per...more

President Obama's Directions to DOL Include Review of Duties Tests for Overtime Exemptions

Last week’s EmployNews reported a White House announcement that the Department of Labor has been instructed to review changing minimum salary levels for qualification for the executive, administrative and professional...more

Connecticut Becomes the First State to Increase Minimum Wage to $10.10 per Hour by 2017

On March 27, 2014, Connecticut became the first state in the country to pass legislation mandating an increase to the state minimum wage to $10.10 per hour by 2017—the same rate to which President Barack Obama is seeking to...more

Alert: West Virginia House Bill 4283 Raises Minimum Wage and Has Unintended Consequences

West Virginia Governor Earl Ray Tomblin signed House Bill ("HB") 4283 into law yesterday, April 1, 2014. The bill will raise West Virginia's minimum wage incrementally, from $7.25 per hour to $8 per hour on January 1, 2015,...more

Do We Have to Pay Summer Interns?

With summer approaching, many employers are receiving requests from college and high school students to work as summer interns. Many of these applicants are willing to work for free to gain valuable experience and frequently...more

Seventh Circuit Gets (Maybe Too) Clever In FLSA Donning And Doffing Case (Part 1 Of 2)

A few weeks ago on Twitter, I remarked on Mitchell v. JCG Industries, a case from the Seventh Circuit penned by Judge Richard Posner: Worked OK for #employer here, but scary precedent for all if judges do own demos...more

Hotel Pay Bias Lawsuit Leads to $75,800 Settlement

Extended Stay Hotels agreed to pay $75,800 in settlement of a pay bias lawsuit in which a female employee was paid less than male employees. According to the Equal Employment Opportunity Commission’s (“EEOC”) suit, Extended...more

One “Tip” That Won’t Soon Be Forgotten

Recently, Philadelphia sports bar and restaurant chain Chickie’s & Pete’s (“C&P”) signed a consent judgment with the Department of Labor agreeing to pay current and former employees more than $6.8 million in back wages and...more

(Not) April Fools Day – Changes To The Canada Labour Federal Code Effective April 1, 2014

For those federally regulated employers that are governed by the Canada Labour Federal Code (the “Federal Code”), there are some substantive changes coming of which you should take note....more

Are You Ready for the Wage and Hour Crackdown?

Ready or not, heightened government scrutiny of your wage and hour practices is coming. President Obama’s proposed budget for 2015 includes an increase of more than $41 million for the Wage and Hour Division of the U.S....more

Amazon Prime Time – Should Employees Be Paid to Wait in Security Lines? Supreme Court to Decide.

The Supreme Court has agreed to hear oral argument on the issue of whether employers must compensate employees for time they spend going through mandatory security checks, which are aimed to curb employee theft....more

Is There Quality to the Argument That Severance Payments Are Not Taxable "Wages"? – Supreme Court Holds That Severance Payments...

Earlier this week, on March 25, 2014, the U.S. Supreme Court handed down a highly publicized decision in the case of United States v. Quality Stores. In Quality Stores, the Court unanimously held that the severance payments...more

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