Wages

News & Analysis as of

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

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

Weekly Update Newsletter - October 2014 #2

SBA Data Shows Large Firms are Nabbing Contracts Reserved for Small Businesses - Federal procurement data show that large companies, including leading defense contractors, last year received millions of dollars in...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

DOL Issues Final Federal Contractor Minimum Wage Rule

Under Executive Order 13658, covered employees must be paid at least $10.10 per hour starting January 1, 2015. On October 7, the U.S. Department of Labor (DOL) published in the Federal Register the preamble and final...more

"Turning Up the Heat" – Organizing Efforts in the South

It is no coincidence that the incredible resurgence of manufacturing in the Southeastern United States occurred in the absence of unionized facilities. Automotive, aerospace, and appliance manufacturers have flocked to the...more

New Law Makes Employers Liable for Labor Code and Other Violations of Staffing Companies

At some time during the business cycle, many companies utilize staffing or labor contracting agencies to obtain workers to perform certain tasks. In such situations, the staffing or contracting agency typically serves as the...more

Significant Changes To The Illinois Wage Payment And Collection Act Receive Little Publicity, But Employers Should Take Notice

On August 22, 2014, significant changes to the Illinois Wage Payment and Collection Act (IWPCA) regulations became effective. The IWPCA is an Illinois law with a ten-year statute of limitations that governs the payment of...more

New California Law Holds Employers Liable for Labor Contractor’s Wage Violations

California Governor Jerry Brown recently signed into law A.B. 1897, significantly expanding the potential liability of employers who use labor contractors, subcontractors, or staffing agencies for workers. Effective January...more

Federal Contractors Beware – Part 6

On February 12, 2014, President Obama signed Executive Order 13658, entitled “Establishing a Minimum Wage for Contractors”, ordering a minimum wage increase to $10.10 for workers on federal construction and service contracts....more

New Law Puts California Businesses On The Hook For Wage And Workers’ Compensation Claims By Temporary Workers Employed By Staffing...

A new law exposes California businesses to potential liability for claims by temporary workers. On September 28, 2014, Governor Brown signed into law AB 1897, which created California Labor Code § 2810.3. The new law requires...more

California Companies Liable for Subcontractor Wage Violations Beginning 2015

Companies that rely on labor provided by third-party contractors may be held jointly liable for wages owed to the contractor’s workers under a new California law that goes into effect on January 1, 2015. The legislation...more

California Enacts AB 1897 Which Means Greater Liability For Employers Who Use Labor Contractors

The new law targets businesses that obtain or are provided “workers to perform labor within its usual course of business from a labor contractor.” The statute’s definition of “labor contractor” excludes bona fide nonprofits,...more

It's Payback Time: Reimbursement Of Employee Expenses Is A Hot Issue In California

As class actions continue to plague employers in California, one area that is often overlooked is expense reimbursement. The California Labor Code makes clear that employers must indemnify employees for all necessary...more

“Hurricane” Servers at Pat O’Brien’s File Suit for Stolen Tips and Unpaid Wages

Bartenders at the popular New Orleans watering hole, Pat O’Brien’s, have sued the bar in federal court claiming that managers regularly took money out of their tip jars, causing them to receive less than the minimum wage....more

Brown Signs AB 1897 Meaning Greater Liability For Employers Who Use Labor Contractors

The new law targets businesses that obtain or are provided “workers to perform labor within its usual course of business from a labor contractor.” The statute’s definition of “labor contractor” excludes bona fide nonprofits,...more

Quirky Question #242 – Policing Break and Time Records Pays Off

Quirky Question - We are a California employer. After all the publicity surrounding class actions over meal and break periods, we instituted automatic warnings if employees take too long or too short a meal or rest...more

New York City Expands Living Wage Law For City Contractors

On September 30, 2014, New York City Mayor Bill de Blasio signed Executive Order No. 7, “Living Wage For City Economic Development Projects,” which raises the city’s “living wage” (i.e., minimum wage) for certain employers...more

Working Two Jobs to Make Ends Meet: Paying Employees Working Exempt and Non-Exempt Jobs

Back in 2012, my colleague Bill Pokorny discussed how to properly pay a non-exempt employee who worked two jobs for an employer. This past week, one of my other colleagues and I were discussing a twist on this situation: what...more

Court Affirms CMS's Adjustments to Wage Index

Deferring to CMS, the United States Court of Appeals for the Sixth Circuit recently upheld the agency’s treatment of hospitals’ payments to employees for wage index purposes. Atrium Medical Center v. U.S. Dept. of Health &...more

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