Wage and Hour Employer Liability Issues

News & Analysis as of

Texas Bill Protects Franchisors From Joint Employment Liability

Texas legislators recently passed S.B. 652, which seeks to protect franchisors from employment liability for the actions of franchisees. Enacted in June 2015, S.B. 652 amends the Texas Labor Code to specify that a franchisor...more

Pennsylvania Court Rules Payroll Cards Aren’t “Lawful Money,” Says Employers Must Pay Using Checks Or Dead Presidents

We have previously reported and blogged about challenges to paying employees through debit card-like “paycards.” A recent Pennsylvania decision has amplified those concerns....more

N.Y. State Fast Food Workers Likely To Win $15 Minimum Wage Raise

As previously reported, Gov. Andrew Cuomo in May empaneled a three-person wage board (the Board) to study and fix perceived wage inequality suffered by New York’s fast food workers – including by recommending whether, and by...more

Department of Labor Guidance Seeks Expanded “Employee” Classification of Workers

On July 15, 2015, the Department of Labor (DOL) issued an Administrator’s Interpretation (No. 2015-1) providing guidance on the classification of employees as independent contractors under the Fair Labor Standards Act (FLSA)....more

CHEERLEADERS HAVE RIGHTS TOO! New Law Addresses the Struggle of the California Cheerleader

Global warming, a decaying infrastructure, budget problems, pollution, endangered species; these are all serious problems. In a world full of serious problems, lesser tragedies frequently go unnoticed. Like the plight of the...more

Wage and Hour Division Targets Independent Contractors

Last week, the U.S. Department of Labor’s Wage and Hour Division released an Administrator’s Interpretation providing guidance on the misclassification of workers as independent contractors. The guidance sets forth a...more

“Heads, You Lose! Tails, I Win!” No Matter Which Way You Play It, The Department Of Labor Interpretation Of Independent Contractor...

The Department of Labor’s Wage and Hour Division has issued an “Administrator’s Interpretation” that elucidates the DOL’s views on the issue of who is an employee and who is an independent contractor under the Fair Labor...more

That is SO last week - July 2015 #4

Last week, the Equality Act was introduced in Congress. If enacted, this historic legislation will prohibit discrimination in employment and other life activities on the basis of sexual orientation and gender identity. It’s...more

Department of Labor Says Most Workers Are Employees Under FLSA: Ultimate Test Is Economic Dependence

On July 15, 2015, the Wage and Hour Division of the U.S. Department of Labor (DOL) issued Administrator’s Interpretation No. 2015-1, adopting a very expansive interpretation of the definition of employees under the Fair Labor...more

Immigration-Related Documents and Information Not Discoverable in Wage and Hour Lawsuit

A New York federal court recently said that the plaintiff-employees involved in a wage and hour lawsuit are not required to produce their immigration documents and information. The case is important because it limits an...more

Washington Employers Must Pay Piece Rate Workers Additional Rest Break Compensation

With some limited exceptions, Washington State wage and hour rules require that workers receive a paid 10 minute rest break for every four hours worked. The Washington Supreme Court has now expanded employer obligations in...more

DOL WAGE & HOUR DIVISION’S “ADMINISTRATOR’S INTERPRETATION” NO INDEPENDENT CONTRACTOR COUP DE GRÂCE FOR TRUCKING—JUST NEW...

On July 15, 2015, David Weil, Department of Labor Wage and Hour Division (the “Division” Administrator, issued the much anticipated and promised “administrator’s interpretation” (the “Memo”) on the issue of worker...more

Employment Law - July 2015 #2

DOL Proposes Major Overhaul of Overtime Rules: Why it matters - Expanding the scope of employees eligible for overtime, the Department of Labor (DOL) released its long-awaited new rules revising the white collar...more

The Gender Pay Gap: Mandatory Reporting Announced

The UK government introduces mandatory reporting for businesses to account for average male and female earnings. According to the UK’s Office for National Statistics, on average, women earn around 80 pence for every £1...more

Connecticut Passes Two Employment-Related Bills: Pay Secrecy and Workplace Protections for Interns

Bill Barring Pay Secrecy - On July 2, 2015, Governor Dannel P. Malloy signed Public Act 15-196, "An Act Concerning Pay Equity and Fairness” (“Pay Equity Act”), which makes it illegal for Connecticut employers to prohibit...more

Misclassification in the Cross-Hairs: DOL Issues new Interpretive Guidance

The U.S. Department of Labor has been busy of late. Fresh off of issuing a new Notice of Proposed Rulemaking proposing major changes to overtime exemptions (as summarized by HRLegalist), DOL Administrator David Weil has...more

How to Effectively Handle a Wage and Hour Government Investigation

According to recent studies, companies paid $400 million in 2014 and $39 million in the first three months of 2015 to settle wage and hour lawsuits exclusively. Aside from the ever-increasing threat of private wage and hour...more

That is SO last week - July 2015 #3

There’s just no rest for employment lawyers this summer. We had another exciting week. The biggest news was the EEOC’s ruling that Title VII prohibits discrimination on the basis of sexual orientation. The agency found that...more

Client Alert - Interns & Independent Contractors

Second Circuit Reverses Class Certification Ruling in Fox Searchlight Unpaid Intern Case, Directing Trial Court to View Economic Benefit Factors Through New Lens - A federal appellate court in New York handed an apparent...more

The Department of Labor Says There Are Essentially No Independent Contractors

The U.S. Department of Labor (DOL) has issued an Administrator’s Interpretation letter on the topic of misclassification of employees as independent contractors. Their conclusion is that “most workers are employees under the...more

DOL to Employers: 'Most' Independent Contractors Are Unlawfully Misclassified, and We Are Ready to Prosecute Violators

The United States Department of Labor (DOL) has just issued its first “Administrator’s Interpretation” of 2015 (“Memo”). Although the Memo’s stated purpose is to “be helpful” for employers – ostensibly by providing them with...more

Second Circuit Rejects DOL Test on Intern Pay

Over the past several years, employment lawyers have cautioned their clients with regard to legal risks involved with unpaid internships. As these internships rose in popularity, many of the arrangements failed to meet...more

DOL claims most workers classified as independent contractors are "employees" covered by the FLSA

The Wage Hour Administrator has issued a detailed formal interpretation of when someone should be classified as an independent contractor or an employee for purposes of the federal wage-hour laws (Fair Labor Standards Act)....more

The “Independent Contractor” Truck Driver, Wage & Hour Laws, the Affordable Care Act, and Safety Regulations

On The challenges that trucking companies face regarding truck drivers continue to expand. One vexing issue facing many companies: Can they continue to treat many of their truck drivers as “independent contractors” as they...more

US Department of Labor Issues Administrator’s Interpretation Aimed At Limiting Independent Contractor Classification

As forecast in our June 12, 2015 blog post David Weil, Administrator of the Department of Labor’s Wage and Hour Division (WHD) has released Administrator’s Interpretation (AI) No. 2015-1, entitled “The Application of the Fair...more

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