Minimum Wage and Overtime

The trend toward local regulation of employment laws continues in California with three new local wage and hour enactments.

San Diego

On June 7, 2016, San Diego voters passed a ballot initiative containing two provisions for hourly workers. First, San Diego’s new minimum wage will be $10.50 per hour once the ballot results are confirmed, which is expected to be in mid-July.  Second, San Diego will have its own paid sick leave policy of five days (40 hours) – which is in excess of the state law that allows employers to limit use of accrued paid sick leave to three days (24 hours).

Like the state law, San Diego’s paid sick leave will accrue at one hour for every 30 hours worked and cannot be used until after 90 days of employment. Also like the state law, San Diego’s sick leave initiative allows accrued leave to be front loaded or accrued, and it must be carried over year to year.

Continue Reading Three California Municipalities Enact New Minimum Wage and Paid Sick Leave Laws

Please join us on June 21st at 2:00 pm ET as we cover the new white-collar overtime rule.  This one-hour webinar will offer employers more than just a summary of the rule.  It will also offer unique insights on the rule’s impact, help employers navigate the complex issues that may arise when revisiting their classification decisions, and suggest best practices for making and implementing these decisions, including communicating them to the workforce prior to the December 1st effective date.

If you have any question you would like us to address, please email them to me at msarnold@mintz.com in advance of the webinar.  You can find our previous coverage on the blog on this issue here (and check back regularly for additional updates).

We hope you can join us!  Register here.

Mintz Levin is an approved CLE provider. This webinar is accredited in the following states: California (1.0 general credit) and New York (1.0 general credit).  Mintz Levin is also recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This webinar is valid for 1.0 PDC for the SHRM-CPSM or SHRM-SCPSM.

One of the few “wins” for employers under the DOL’s new overtime rule was that employers are now allowed to apply “nondiscretionary incentive payments” to meet up to 10 percent of the new salary threshold.  This change could prove very important for employers who pay employees on a commission basis or who use other incentive-based compensation.

But what qualifies as a nondiscretionary incentive payment?  What options do employers have in changing their compensation plans to ensure compliance with the new rule?  And what could be the unintended consequences of those changes?  This post looks at this new rule and attempts to answer some of those questions.

Continue Reading Handling Nondiscretionary Incentive Payments Under the New FLSA Overtime Rule

As we reported earlier, the DOL has now released its final overtime rule. Two of the biggest takeaways are that the new rule (1) greatly increases the minimum salary threshold of the so-called “white collar” exemptions (at least $913 per week, equaling $47,476 annually); and (2) made no changes to the exemptions’ separate job duties’ tests.  The impact of the new rule is expected to be far-reaching – affecting more than 4.2 million workers, with a predicted $12 billion boost to wages over the next 10 years.  Below we address the new rule’s impact on California employers, who must still comply with the state’s wage and hour laws when making compliance decisions. Continue Reading The DOL’s New Overtime Rule: Considerations for California Employers

Over the course of this and next week, we will discuss the final overtime rule’s impact and address related workplace issues on which employers should focus in advance of its December 1st implementation date.  Today we focus on the rule’s impact on non-profits and educational institutions. 

On Wednesday of this week, the Department of Labor announced its Final Rule, which is aimed at expanding overtime eligibility for millions of American workers.  At its core, the final version of the rule doubled the minimum salary employers must pay “white collar” workers to maintain their exempt status.  See our post here for a summary of the new regulations.

But what does this mean for non-profits, including educational institutions, which may be harder hit by these changes than private sector employers?  In short, generally the same thing it means for any other employer.

Continue Reading Where do the DOL’s New FLSA White-Collar Overtime Regulations Leave Non-Profits and Educational Institutions?

The wait is over!  This morning, the Department of Labor announced its Final Rule, which is aimed at expanding overtime eligibility for millions of American workers.  At its core, the final version of the rule doubled the minimum salary employers must pay “white collar” workers to maintain their exempt status.  The final rule did not, however, make any change to the job duties test.

Over the course of this and next week, we will discuss the rule’s impact and address related workplace issues on which employers should focus in advance of the rule’s December 1st implementation date.  We will also host a webinar.  For now, we’ll briefly summarize the key provisions from the rule.

Continue Reading The DOL Releases Its Final Rule Updating the FLSA White-Collar Overtime Regulations

My colleague David Barmak was featured in the NPR program, Marketplace in which he examines the negative implications of changing the white-collar overtime rules so that more white-collar workers are eligible for overtime. The program provides an overview of the rule and its impact on the wage gap and service industry.

California and New York have each passed laws that will gradually raise their state’s minimum wage rate to $15 per hour.  This is a stunning development coming just four years after a small group of New York fast food workers initiated the call for the increase.  The new laws will impact millions of Americans and put pressure on other jurisdictions and business to make similar increases in other parts of the country.  We briefly break down the new laws below.

Continue Reading California and New York Approve Phased-In $15 Per Hour Minimum Wage, Highest in Country’s History

The United States Supreme Court ruled Tuesday that Tyson Foods employees could use representative evidence to establish liability and damages for class certification purposes.  The opinion gives the plaintiffs’ class action bar a second victory in the Court’s current term, albeit a far narrower one than many commentators had feared.  (We covered the first victory here.)  Perhaps, more importantly, the Court sidestepped a seemingly more controversial issue regarding whether a class may include uninjured class members.  That issue will have to be decided another day.  We analyze the Tyson Foods opinion below.

Continue Reading Taking an Evidentiary Approach, the Supreme Court Rules that Employees Can Use Representative Samples to Establish Classwide Liability and Damages, But It Leaves Open Question of Whether Classes Can Include Uninjured Class Members

That’s what DOL Solicitor of Labor, M. Patricia Smith, reportedly said at the 2016 American Bar Association’s Midwinter Meeting.  But remember: she also said at another conference in November 2015 that the DOL was targeting a “late 2016” release date, while the DOL Labor Secretary, Thomas Perez, told Bloomberg BNA in December 2015 that he expected a spring 2016 release.  So which will it be?  Rest assured, we are keeping a very close eye on this and will keep you updated.