Wage and Hour

News & Analysis as of

Employment Law Update: Tech Support - The FLSA’s Specialized Exemption

The Fair Labor Standards Act (FLSA) provides several exemptions from overtime requirements for employees whose job duties meet specific tests. Most employers are familiar with the standard “white- collar” exemptions –...more

Affordable Care Act in Mergers and Acquisitions: New Guidance from Internal Revenue Service

In Notice 2014-49, the Internal Revenue Service (“Service”) issued guidance on how to avoid potential penalties under the Affordable Care Act (“ACA”) in connection with mergers and acquisitions (“M&A”). The notice provides a...more

DOL Backs Paid Leave Push in 3 States, D.C. with $500,000 Grant

Recently, we detailed the efforts to push for paid sick leave by state and local governments in light of California’s passage of a statewide paid leave law. Soon after our post, the U.S. Department of Labor’s Women’s Bureau...more

Proposed Bankruptcy Fairness and Employee Benefits Protection Act of 2014 would place significant restrictions on employers in...

Legislation recently introduced in the Senate would place many restrictions on the ability of a corporation navigating bankruptcy to change the compensation and benefits of employees and retirees. The bill would also create a...more

The Line Out of This Place Is as Long as the Amazon.com River

This month, the U.S. Supreme Court heard argument in a case that would seem to raise easy enough questions: When does an employee’s workday begin and end? What activities count as “work”? However, these questions have given...more

DOL Announces Delay to Home Care Worker Wage Regulations

Last October, the federal Department of Labor’s Wage and Hour Division sent shockwaves through the home health care industry by issuing final rules declaring most of its employees to be subject to FLSA minimum wage and...more

Employment Law - Oct 2014 #2

EEOC Sues Over Transgender Discrimination - Why it matters: In its first cases alleging bias against transgender employees, the Equal Employment Opportunity Commission has filed suit against a Florida eye clinic and a...more

Keep Your Hands Off the Customers … and the Cows

A federal district court in Washington has confirmed that an employer’s relationship with the cows that its employees serviced is insufficient to establish a legitimate protectable interest to enforce a non-compete....more

Internships out of Fashion? Wage Lawsuits on the Rise in New York

Internships and training programs have been a staple of the fashion industry (among many other industries) for years. Luxury retailers have traditionally offered internships in the areas of communications, marketing,...more

Immigration Law Does Not Preempt State Wage and Hour Claims, Says Court

In case there was any question, an Indiana staffing company, Access Therapies, learned late last month that the Immigration and Nationality Act (INA) does not absolve employers of their responsibilities under state wage and...more

Another Federal Court Decertifies FLSA Collective Action of Hospital Workers Challenging Auto-Deduct Policy

We have previously discussed that, while medical providers have become a common target of plaintiffs asserting wage and hour claims arising out of so-called “auto-deduct” policies, more and more courts are realizing that the...more

“Black Car” Drivers Found to be Independent Contractors

Recently, courts in highly-publicized independent contractor misclassification cases in the transportation sector have issued determinations finding the workers to be employees. However, a recent decision from the Southern...more

California’s Second and Fourth Appellate Districts Split Over Who Should Decide Whether Agreement Authorizes Class Arbitration –...

In Network Capital Funding Corporation v. Papke, G049172, 2014 WL 5035099 (Cal. Ct. App. Oct. 9, 2014), the California Court of Appeal for the Fourth Appellate District declined to follow the reasoning of the Second Appellate...more

Potentially Far-Reaching FLSA Case Before Supreme Court

On October 8, 2014, the Supreme Court heard oral arguments in Integrity Staffing Solutions, Inc. v. Busk to determine whether time employees spend in a security clearance solely for their employer's benefit is compensable...more

California District Court Finds Bankrupt Named Plaintiffs Not Adequate Representatives

Anyone questioning whether the Supreme Court’s decision in Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011), has had an impact need look no further than the decision in Alakozai v. Chase Investment Services Corp., Case...more

New Law Makes Employers Liable for Temp Agency Violations

A new law that will soon go into effect in California will significantly change the legal relationship between temporary staffing agencies and the companies (“client employers”) that contract with them to use temporary...more

IRS Announces Impending Tighter Enforcement of Employer-Provided Meals, Fringe Benefits

Internal Revenue Code § 119 allows employers to deduct 100% of the value of meals provided to employees when they are for the convenience of the employer, and they are furnished on the business premises of the employer. Meals...more

The Cost of Security for Employers: Is Time Spent Going Through Security Compensable?

The Supreme Court will soon decide whether employers will be required to pay their employees for time spent going through a security clearance at the end of each shift. The case is Busk v. Integrity Staffing Solutions, Inc.,...more

Networking Company Pays $6 Million for Overtime Violations

The U.S. Department of Labor (DOL) slapped nearly $6 million in fines on a prominent online professional-networking company for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The fine...more

WHD Publishes Final Rule Increasing Federal Contractors’ Minimum Wage

On October 7, 2014, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) published its Final Rule establishing standards and procedures to implement Executive Order 13658, entitled “Establishing a Minimum...more

DOL Makes It Official: New FLSA Regulations Delayed Until 2015

Back in late May, we told you that the Department of Labor had released its required Semiannual Regulatory Agenda. The Agenda, which is not binding on the DOL, included several FLSA-related items. Most importantly, the DOL...more

Federal Contractor Minimum Wage Provisions Finalized

In July, we alerted government contractors and subcontractors to the Department of Labor’s (DoL) Proposed Rule to implement Executive Order (EO) 13658, which raises the minimum wage for covered employees working directly on,...more

NLRB Adopts New Test for Independent Contractor Misclassification, Applies it to Find FedEx Drivers are Employees Who Can Unionize

The NLRB has tossed a new vegetable into the enormous salad of independent contractor misclassification tests. As companies might expect, the new vegetable smells rotten. Companies who wish to analyze whether their...more

Misclassification Initiatives Spread as Alabama Signs Formal Pact with DOL

On October 2, 2014, the Alabama Department of Labor and the U.S. Department of Labor (DOL) entered into a formal Memorandum of Understanding (MOU) or agreement to share information regarding independent contractor...more

When "Free" Is Too Good To Be True: Rethinking Interns And Volunteers Under Wage & Hour Laws

Educational institutions of all kinds often utilize the services of volunteers or so-called interns to assist with coaching sports or other extracurricular activities, and to participate in programs that are mutually...more

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