Join us in a discussion on the increasingly complex landscape of employee misclassification as we explore best practices to help your company avoid the costly pitfalls and time consuming litigation that can result from this expensive mistake.
Last year New York State made significant changes to its wage orders resulting in increases to the State’s minimum wage, white collar overtime exemption salary thresholds, tip, meal and lodging credits, and uniform allowances. The latest changes go into effect on December 31, 2017. We quickly summarize the minimum wage and overtime salary threshold changes below, but urge you to visit our prior post here for more in-depth coverage, including best practices for compliance.
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.
Over the next two weeks we will release our Year in Review segment, which will look 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 kick off this segment with New York. 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.
2016 brought big changes for New York State and City employers, including expansive new discrimination protections and substantial increases in the minimum wage and exempt salary thresholds. While New York employers who successfully navigated 2016’s rush of legislative, regulatory and judicial obstacles might feel they’ve earned the right to shift their focus back from compliance issues to running their businesses, they should not lose sight of the additional challenges expected in 2017.
On February 16, 2017, the New York State Industrial Board of Appeals invalidated and revoked the NYS Department of Labor regulations we wrote about previously (and updated here) governing payment of wages by direct deposit or payroll debit card. The regulations were scheduled to take effect on March 7, 2017.
In October, we wrote about the new NYSDOL regulations for employers who use direct deposit and/or payroll debit cards to pay their employees. The regulations take effect on March 7, 2017 – just about a month from now – and they impose a host of new rules on employers, including the requirement to provide notice and obtain consent from employees who elect to receive wages by direct deposit or payroll debit card.
Since a Texas federal judge blocked the U.S. Department of Labor’s overtime rule from taking effect in November, human resource managers, payroll professionals and employment attorneys (including over here at Employment Matters) have been abuzz about the fact that, at least for now, employers do not need to make sweeping changes to their compensation practices to comply with the rule. What has been less discussed, however, is the impact on New York employers of the New York State Department of Labor’s amendments to New York’s Wage Orders, which become effective on Saturday, December 31, 2016, and which will, among other things, significantly increase the State’s minimum wage rate as well as its the minimum salary thresholds for individuals classified as exempt executives and administrative employees.
The NYSDOL had proposed these changes several months ago and the comment period ended back on December 3rd. But the final rule was issued just yesterday, unchanged from its proposed form. With the clock ticking, New York employers must and should pay immediate attention to these changes and should act quickly to fulfill their ongoing notice and posting obligations while adjusting compensation levels accordingly. We summarize the Wage Order amendments below.
As the workplace becomes increasingly digitized, both employers and employees can benefit from the conveniences technology provides. Chief among those is the convenience of electronic access to funds, which allows people to bank, pay bills, and transfer money from a computer or mobile device rather than being constrained by the limitations of brick and mortar financial institutions.
In this vein, many employers have taken advantage of new technology that makes life easier for businesses and their employees. In the realm of wages, electronic payment methods such as payroll debit cards and direct deposit would seem to make life easier. However, beginning on March 7, 2017, New York employers who use these methods to pay wages must pay even closer attention when doing so. That’s because last month the New York State Department of Labor issued Regulations imposing various additional written notice and consent requirements on employers who use methods other than cash or check to pay employees. We summarize those requirements below.
Last summer the Second Circuit issued an important decision that identified the proper test for determining whether an employer properly classified an individual as an unpaid intern. The decision was a victory for employers because the nature of the test required courts to utilize a highly-individualized analysis of each intern’s experience, and therefore, it did not necessarily lend itself to class action treatment. On rehearing, the Second Circuit has now amended this decision to clarify that the test is highly context-specific rather than dependent on the individualized experiences of each intern.
Written by Michael Arnold
The New York State Department of Labor has finally released regulations interpreting the Wage Deduction Law that New York amended nearly a year ago. At last, I can sleep at night. Here are my 5 quick takeaways from those regulations, which are relatively easy to read and can be accessed here. Continue Reading New York State Department of Labor Adopts New Wage Deduction Regulations