Wage and Hour

News & Analysis as of

California PAGA Amendments Will Expand Labor Officials’ Involvement in PAGA Claims

On June 15, 2016, the California Legislature approved Governor Jerry Brown’s budget. As part of the budget, the Legislature passed SB 836. Included as part of this 96-page budget “trailer bill” are a number of amendments to...more

EEOC Chair Reveals That Agency Intends To Issue A Revised EEO-1 Rule

As previously reported, in February 2016 the EEOC proposed revising its EEO-1 report to require employers to provide certain wage and hour data regarding their employees to the EEOC on an annual basis. The notice and comment...more

SCOTUS Says DOL Needs to Explain Itself If It Wants Deference to its Regulations

This week, the Supreme Court dealt a blow to the Department of Labor’s rulemaking procedures, criticizing the agency for explicitly changing its long-standing treatment of automobile service advisors as overtime exempt while...more

$15 Minimum Wage Bill Heads to Governor Christie’s Desk

In a close 21-18 vote the New Jersey State Senate passed bill S15, the $15 Minimum Wage Bill. The bill will now head to Governor Christie’s desk after its previous stamp of approval from the New Jersey State Assembly. The...more

Paid Sick Leave Is Coming to Chicago: Mark Your Calendars for July 1, 2017

An ordinance mandating paid sick leave for Chicago employees, first introduced in April, passed before the City Council on Wednesday, June 22, 2016. Chicago will now join the growing list of cities with similar laws on the...more

Here’s a Tip for You, Jack – Fifth Circuit Upholds Ruling on Restaurant Credit Card Offset

Life is filled with risky decisions. Should you take that new job? Should you put in an offer on that house that is just out of your price range? Should you really eat that last piece of cake when you’ve already had two?...more

"Nondiscretionary" Pay And The 90%/10% Approach

Once the U.S. Labor Department's revised definitions for the federal Fair Labor Standards Act's Section 13(a)(1) "white collar" exemptions take effect, employers will be allowed to: - Pay as little as 90% of the new $913...more

Chicago to Become the Second City in the Midwest to Mandate Paid Sick Leave in 2016

On June 22, 2016, the Chicago City Council unanimously passed the Chicago Minimum Wage and Paid Sick Leave Ordinance (the “Ordinance”).  Chicago is the second city in the Midwest this year to pass a law granting employees...more

Costa Rica: Aumento Salarial Aprobado para el Sector Privado para el Segundo Semestre 2016

El 15 de junio del 2016, el Consejo Nacional de Salarios aprobó un aumento al salario mínimo de 0.5%, correspondiente al segundo semestre del 2016 para los empleados del sector privado, excepto para las trabajadoras...more

Costa Rica: Salary Increase Approved for the Private Sector for Second Semester of 2016

On June 15, 2016, Costa Rica’s National Wages Council (“Consejo Nacional de Salarios”) approved a 0.5% increase to the minimum wage for all private sector employees, except for domestic workers whose salaries will be...more

Supreme Court Criticizes Labor Department for Arbitrary Overtime Regulations

The Supreme Court ruled on June 20, 2016, that the U.S. Department of Labor’s (“DOL”) 2011 regulation removing a long-standing exemption to overtime pay for auto service advisors was “procedurally defective.” In a 6-2...more

Minneapolis Passes Paid Sick and Safe Leave Ordinance

On May 27, 2016, after more than six months of public discussion, the Minneapolis City Council unanimously approved an ordinance that will require all employers in the city to provide paid sick and safe leave to most workers....more

Chicago Employers Must Grant Paid Sick Time: FAQ

On June 22, 2016, the Chicago City Council voted unanimously in favor of an ordinance that will require every non-construction employer to provide its employees who work in the city with 40 hours of paid sick time per year....more

If Pain, Yes Gain—Part XX: Chicago City Council Set to Make Sick Leave a Reality

Seyfarth Synopsis: On June 16, 2016 the Chicago, IL City Council’s Committee on Workforce Development and Audit recommended that the city adopt a mandatory paid sick leave ordinance—the first of its kind in the state. This...more

Supreme Court Rejects Deference to DOL Regulation on FLSA Exemption Due to Failure to Provide Reasoned Explanation for Change

The Supreme Court granted certiorari in Encino Motorcars, LLC v. Navarro, No. 15-415 (June 20, 2016), to resolve a circuit court split regarding whether “service advisors” are exempt from receiving overtime pay under the Fair...more

Avoid Common Mistakes When Creating Commission and Bonus Plans

Commissions and bonuses represent a significant component of the compensation packages of many employees. California Labor Code section 2751 requires commission agreements to be set forth in writing, and requires employers to...more

Here's a tip: Don't skim from employee tips

Hospitality industry employers take note: If you claim a “tip credit” toward the minimum wage for any of your employees, you need to make sure that all tips are properly distributed to employees. A recent case from the Fifth...more

Proposed Rule Would Radically Alter Use of Direct Deposit and Paycards in New York

On June 15, 2016, the New York State Department of Labor (“NYSDOL”) published a proposed rule governing the permissible methods for an employer in New York to pay wages to employees. The most radical change is that all...more

Jocks and Docs: Classifying Postdocs and Coaches Under the DOL’s New Rules

On May 18, 2016, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued its final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer...more

Putting the Brakes on the DOL: USSC Finds that DOL Not Entitled to Deference on Service Manager Overtime Regulation

Yesterday, in Encino Motorcars v. Navarro, No. 15-415, the U.S. Supreme Court vacated a Ninth Circuit ruling that had deferred to a Department of Labor 2011 regulation that auto service advisors were nonexempt and should...more

What Employers Need to Know About the New State Garnishment Laws, Part II: Tennessee, California, South Dakota, and West Virginia

The requirements and processes applicable to employers handling garnishments are primarily governed by state law—meaning that multi-state employers need to be aware of the federal Consumer Credit Protection Act (CCPA) in...more

Los Angeles and Santa Monica Require Enhanced Sick Leave Benefits

Not satisfied with California’s Healthy Workplaces, Healthy Families Act of 2014 which provided paid sick leave to California workers starting in July of 2015, Santa Monica and Los Angeles joined a growing number of cities...more

Labor & Employment E-Note - June 2016

The scope of the federal Defend Trade Secrets Act enacted on May 11, 2016 extends well beyond employment issues. However, its impact on an employer's asset protection and enforcement program is quite significant. Please...more

Controversial Overtime Rule Comes in For a Landing

After two years of wait, debate and overall angst for employers across the country, the new overtime rules were announced on May 18, 2016, and published in the Federal Register on May 23, 2016. As we discussed in an earlier...more

Wait – Senator Warren DIDN’T Slam The Gig Economy?

Outspoken Massachusetts Senator Elizabeth Warren isn’t known for mincing words. Whether she’s telling a big bank to “go to hell” from the floor of the Congress or calling Donald Trump a cancerous demagogue, she is anything...more

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