As all HR professionals and employment lawyers know (even those currently living under rocks), the Department of Labor’s final overtime rule is scheduled to go into effect on December 1, 2016 – less than two weeks from now. The DOL published the rule back on May 18, 2016 providing employers with nearly 200 days to come into compliance. Many have planned accordingly and are ready to go; others are finally focusing on this issue as the deadline nears. At the same time, questions continue to arise over the rule’s fate. In this post, we discuss the current state of play along with some compliance tips for employers.
The trend toward local regulation of employment laws continues in California with three new local wage and hour enactments.
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.
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
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.
The Uber saga continues in O’Connor v. Uber Technologies, Inc. – a closely watched case that will impact the future of the gig economy. Last time we visited this case, the 9th Circuit Court of Appeals had declined to review the district court’s class certification decision, which certified a class of thousands of Uber drivers. This time around, the District Court issued an order that expanded the original class. But Uber has already countered with a move of its own in response to this latest decision. We discuss the latest below.
Written by Natalie Young with Michael Arnold
The sharing or gig economy has introduced a new management paradigm for companies, more flexible schedules for workers, and a greater level of convenience and accountability to consumers. While there are many supporters of this new economy, the individuals providing the services are caught in an undefined space – are they employees or independent contractors?