Minimum Wage and Overtime

As we enter the holiday season, we gather around the bubbler to sing about a few of our favorite (and not so favorite) things in the world of employment and labor law.  Unfortunately, they’re not as sanguine as raindrops on roses or whiskers on kittens…

Some retail employers will be on Santa’s naughty list after the Sixth Circuit found that sales employees paid on a 100% commission or draw basis cannot be required to repay outstanding draws after termination of employment.  The Senate decked the halls of the NLRB by confirming a new General Counsel, who will serve a critical policy role and is expected to move away from enforcement of the NLRB’s broadened joint-employer standard.   This could be the last Christmas employees have to visit EEOC offices in person to file discrimination charges after the EEOC launched a new online portal, putting employers on alert of the possibility of increased charge filings in 2018.  It’s a wonderful Christmas time for minimum wage workers in Montgomery County, Maryland, in DC’s metro area, who joined the small but growing ranks of jurisdictions increasing its minimum wage to $15.00 per hour beginning in 2021. Retail employees in New York might get a silent night away from work thanks to new employee scheduling regulations proposed by the New York State Labor Department that will limit “just in time” or “on call” scheduling and require additional pay for employees scheduled on short notice.  While California employers may have longer than 8 nights, they don’t have quite a month to prepare for new regulations that will take effect January 1, 2018, which expressly prohibit employers from inquiring about an applicant’s criminal history prior to a conditional offer of employment.

Employers beware.  A recent case serves as a reminder as we wind down the calendar year that employers should closely review their policies and procedures applying to employees paid on a 100% commission or draw basis.  In Stein v. HHGreg Stores, the United States Appeals Court for the Sixth Circuit ruled that, while a retail employer’s draw on future commissions to meet minimum wage requirements was lawful, the company policy requiring repayment for outstanding draws after an employee had been terminated was not.

Continue Reading Sixth Circuit Draws the Line: Draws on Future Commissions and Post-Termination Payback Policies

Employers often struggle over compliance with state wage deduction laws, and these potential violations carry with them considerable penalties. In Massachusetts, for example, employers face triple damages for violations of wage and hour laws. This post uses hypothetical examples to demonstrate how narrow the range of permissible activity is under California, Massachusetts, New York, and Washington D.C. laws even when a deduction to an employee’s salary appears as a common sense one or otherwise fair to both parties involved. Employers with employees located in these and other states should consult with legal counsel before making any deductions from employee wages, even if the employee authorizes such a deduction.

So, for example, can employers deduct from employee wages for the cost of uniforms? Personal expenses on corporate credit cards? Broken printers? Let’s explore…

Continue Reading Exploring Wage Deductions in California, Massachusetts, New York and Washington, D.C.

What is happening in employment law? We will be providing you with quick employment law updates on a bi-monthly basis in a new series called “The Bubbler.”  It will let you know what’s what and who’s who in the continually-evolving, ever-important, hard-to-keep-track-of employment law world. The Bubbler delivers current events and other important news to our readers without the time or the interest to piece through the recent legislation, the ever-growing release of regulations and other agency guidance and the lengthy court decisions. We’re your colleagues at the water cooler who tell you just enough to pique your interest (but then provide links to satisfy your curiosity). Enjoy!

Continue Reading The Bubbler: September 6, 2017

Short of a successful (but highly unlikely) appeal, the Obama-era overtime rule is now officially no longer.  That rule would have required employers to pay employees a little more than $47,000 annually to qualify under one of the Fair Labor Standards Act’s white collar exemptions.  The rule was already in limbo when a Texas Federal district court judge temporarily prevented its enforcement just before Thanksgiving last year, and now that same judge has struck down the rule permanently just before another major American holiday.

 

Continue Reading Employers Receive Important Overtime Law News Just Before Labor Day

Spurred by a recent change in a Massachusetts wage and hour regulation, plaintiffs’ attorneys are aggressively pursuing class action lawsuits seeking unpaid overtime premium pay on behalf of car salespeople across the Commonwealth. In Massachusetts, successful wage and hour lawsuits entitle plaintiffs to not only unpaid wages, but also automatic treble damages (i.e., three times owed wages) and a payment of their reasonable attorney’s fees. As a result, this recent trend poses significant risks to Massachusetts car dealers.

Continue Reading Class Action Suits Against Massachusetts Car Dealers on the Rise

Last week, lawyers for the federal government told an appeals court that the Department of Labor plans to revise the currently-blocked overtime rule issued during the Obama administration last year.   But it won’t do so, it said, until the Fifth Circuit Court of Appeals confirms that it has the right to set that threshold.

Continue Reading In the Latest Episode of The Overtime Rule Soap Opera: DOL Tells Fifth Circuit It Will Revise Obama-Era Overtime Rule – But Not Just Yet

Today we offer our last installment in our 2016 Year in Review segment, which will cover the key labor & employment law developments from 2016 in California. Prior installments for the DC Metro Area, New York and Massachusetts are available here.  In addition, please join us in NYC on April 6, 2017 for Mintz Levin’s Third Annual Employment Law Summit as we address some of the key labor & employment issues impacting employers in 2017.  Register here.

In 2016 employers in California had to adjust to compensation and benefits related changes such as a new state minimum wage, a new method of calculating compensation for “piece-rate employees,” and expanded “kin care” benefits. The California Fair Pay Act, aimed at addressing gender wage discrimination also went into effect, modifying existing laws in a few key ways. The legislature also amended California’s Private Attorneys General Act to grant employers a few new ways to “cure” violations.

In 2017 employers should ensure they are complying with “all gender” bathroom requirements and that when making hiring decisions they do not rely on “juvenile offense history.” Employers should also be aware that there is a trend for cities and/or counties to further limit the kinds of information employers may consider in making hiring decisions. Also on the horizon is the probability that the legislature will revisit a new unpaid parental leave law that would impact smaller businesses.

Continue Reading 2016 California Employment Law Year In Review

Today we continue with our Year in Review segment, which looks at the key labor & employment law developments from 2016 in New York, the DC Metro Area, Massachusetts, and California, while offering our thoughts on 2017. Last week we covered New York and the DC Metro Area.  Now we turn to Massachusetts.  In addition, please join us in NYC on April 6, 2017 for Mintz Levin’s Third Annual Employment Law Summit as we address some of the key labor & employment issues impacting employers in 2017.  Register here.

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2016 Massachusetts Employment Law Year in Review

From case law interpreting one of, if not, the most employee-friendly independent contractor statute in the country to Beacon Hill’s efforts to pass non-competition agreement reform, Massachusetts is certainly no stranger to key developments in the labor and employment arena. This blog post highlights the 2016 case law and legislative efforts about which every Massachusetts employer should be aware, and provides insight over what to watch for as we move our way along through 2017 and beyond.

Continue Reading 2016 Massachusetts Employment Law Year In Review

Today we continue with our Year in Review segment, which looks at the key labor & employment law developments from 2016 in New York, the DC Metro Area, Massachusetts, and California, while offering our thoughts about 2017.  Today we turn to the DC Metro Area.  In addition, please join us in NYC on April 6, 2017 for Mintz Levin’s Third Annual Employment Law Summit as we address some of the key labor & employment issues impacting employers in 2017.  Register here

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The District of Columbia, Maryland (including Montgomery County) witnessed an active 2016 with respect to new and amended workplace laws that impose additional responsibilities on employers, and expand employee rights and avenues of enforcement.  Employers should be aware of these new requirements and take immediate action to comply with them.  We highlight below the most significant updates in both D.C. and Maryland; there were no changes or additions of significance in Virginia.

Continue Reading 2016 DC Metro Area Employment Law Year In Review