Category Archives: Wage & Hour

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Is the Wicked Witch Really Dead? California Passes Long Anticipated PAGA Reforms, But Do They Really Help Employers?

In a lightning-fast deal brokered by Governor Gavin Newsom, California lawmakers enacted significant amendments to PAGA, California’s so-called “sue-your-boss” law that deputizes millions of workers across the state to bring labor law enforcement actions against their employers. The amendments, which passed both assembly houses unanimously after attracting broad support from employer groups as well as … Continue Reading

Thanks for Your Opinion, But We’ve Got This: SCOTUS Eliminates Long-Standing Deference to Federal Agency Statutory Interpretation

Based upon a recent ruling by the U.S. Supreme Court, federal regulatory agencies are no longer entitled to deference as to their interpretation of a statute that is ambiguous, and federal courts are now compelled to exercise their independent judgment in deciding if an agency acted within its statutory authority. While the Supreme Court was … Continue Reading

Legal Challenges to the U.S. Department of Labor’s New Overtime Rule

As expected, the first lawsuits have been filed to challenge a new Department of Labor (DOL) “Overtime Rule” that significantly raises the minimum salary threshold for the exempt, administrative, and professional (EAP) and highly compensated employee (HCE) overtime exemptions under the Fair Labor Standards Act. The new rule is intended to take effect today, July … Continue Reading

DOL Unveils Final Overtime Rule and It’s Even More of a Pain Than Anticipated

The U.S. Department of Labor’s long-awaited final “Overtime Rule” is here, and it brings drastic changes to requirements employers must follow for paying salaried employees exempt from overtime. Under the Final Rule, which takes effect July 1, 2024, earnings thresholds that determine workers’ exemption from federal overtime laws will see two big increases in the … Continue Reading

Pay Transparency and a Ban on Consideration of Employee Compensation History for Federal Contractors on the 15th Anniversary of the Lilly Ledbetter Fair Pay Act

This January marked the 15th anniversary of the Lilly Ledbetter Fair Pay Act of 2009, providing a good moment for the federal government to propose new rules aimed at increasing gender pay equity in federal contracting and federal government employment. The new rules announced by the White House are expected to require covered government contractors … Continue Reading

Out With The Old, In With The… Old? DOL Releases “New” Independent Contractor Rule, Bringing Us (Mostly) Back to Status Quo

Fulfilling a campaign promise for President Joe Biden, the United States Department of Labor (DOL) sent employers New Year’s greetings by opening 2024 with a new final rule on independent contractor classifications, revising the economic realities test that determines those classifications. Is Biden’s campaign promise to create a more stringent, California-like “ABC” worker classification test … Continue Reading

No More Two-Stepping for Court Certification of FLSA Collective Actions: The Sixth Circuit Leaves the Rodeo

Courts have been dancing away from the two-step process for certification of collective actions under the Fair Labor Standards Act (FLSA), and the 6th Circuit is the latest to join the trend. In a recent decision that could have significant impact on the future of FLSA collective actions, the 6th Circuit has borrowed a “strong … Continue Reading

Temporary Workers’ Bill of Rights: New Jersey Enacts Trailblazing Protections

Temporary Workers’ Bill of Rights: New Jersey Enacts Trailblazing Protections New Jersey has recently trailblazed a path in the temporary staffing market by enacting a “Temporary Workers’ Bill of Rights.” In a possible harbinger for things to come nationwide – particularly in more worker-friendly states—New Jersey’s new law represents the most significant step yet that … Continue Reading

Pay Transparency Law Updates: Hiring in 2023

Recent legislative action across the country suggests that expanding pay transparency requirements will continue to be a major issue for employers to navigate in 2023. Three states—Illinois, Rhode Island, and Washington—recently joined the pay transparency movement by issuing regulations or enacting laws that require some form of pay disclosure to job applicants to promote pay … Continue Reading

New Pay Transparency Laws Change Job Postings From Coast to Coast

A growing number of cities and states are pushing for greater pay transparency in the hiring process. To add to that growing list, California and New York have both passed pay transparency laws in recent months, leaving employers to modify how they seek out new talent. However, employers should keep in mind that not all … Continue Reading

Top 10 Labor & Employment Issues in M&A Transactions

Your business is buying (or selling) a company – now what? Due diligence is an essential part of a successful merger or acquisition, and there are countless labor and employment issues that may come up during this process. Should due diligence reveal that the target company is not in compliance with a certain law, the … Continue Reading

Work From Home – SOS! Post-Pandemic Legal Hazards

The pandemic has revolutionized the workplaces and remote workforces will almost certainly survive the end of the pandemic. A Gallup poll last fall indicated that 61 percent of workers expect to work remotely at least part of the time in the future, and just 9 percent expect to work from home only minimally or not … Continue Reading

A Look Back At 2021 For California’s Private Attorneys General Act, and What To Expect in 2022

Last year was a significant year for California’s Private Attorneys General Act (known as “PAGA”), the 18-year-old wage-and-hour enforcement act that, according to one study, has generated over 20,000 lawsuits against employers over the past five years costing employers, on average, over $1.1 million per case. On its face, PAGA purports to improve enforcement of … Continue Reading

Pay Transparency Requirements on the Rise

Across the country, many states have enacted Equal Pay laws which require employers to comply with a variety of requirements, typically including limits on inquiries about prior salaries and the permissible rationale for pay differentials between similar employees. Now, many states are amending those laws to require companies to disclose the expected pay range of … Continue Reading

DOL’s Final Rule on Tipped Employees Takes Effect December 28th

Beginning December 28, 2021, employers must pay tipped employees the full minimum wage for periods when non tip-producing work is performed for a substantial amount of time, in light of a new Department of Labor (DOL) Final Rule taking effect that date. To comply with the rule, employers should revisit their current policies regarding how … Continue Reading

Colorado Employers May Need to Pay Out Accrued Vacation on Termination

Colorado employers should carefully review their vacation and paid time off policies following a recent decision from the Colorado Supreme Court. On June 14, 2021, the Colorado Supreme Court held in Nieto v. Clark’s Market that although the Colorado Wage Claim Act (CWCA) does not require employers to provide employees with vacation pay, if the … Continue Reading

The Cost of Meal and Rest Break Violations Just Went Up for California Employers

California employers finally have clear guidance on the implications of failing to comply with California’s meal and rest break requirements under the Labor Code. Most businesses in California are familiar with meal and rest break requirements, and, equally so, with the penalty mandated by Section 226.7 of the Labor Code for violations—one hour of pay … Continue Reading

Tipped and Non-Tipped Work Back Under the Microscope

The old “80/20 rule” is back again for tipped workers under the latest proposed Final Rule issued by the Department of Labor (DOL) last month. Employers in the service industry, especially those employers who take a tip credit and/or implement a tip pool for their employees, should keep an eye on this latest Final Rule. … Continue Reading

Family and Medical Leave: What’s New and What’s Not

Last month, President Biden rolled out “the American Families Plan,” a proposal that would phase in paid family and medical leave for employees with certain medical and family obligations. The proposal would cost around $225 billion over 10 years, which, according to the White House, would be paid mostly by upping taxes on the wealthy. … Continue Reading

Not So Fast: DOL Pauses Aspects of FLSA Tip Regulations Final Rule

Employers should continue to track and keep records of the percentage of time tipped wage earners spend performing non-tip eligible tasks, as the U.S. Department of Labor (DOL) has pressed pause on several provisions of the Trump Administration’s 2020 Final Rule addressing Tip Regulations under the Fair Labor Standards Act (FLSA). Among the provisions paused … Continue Reading

Mandatory Versus Voluntary Vaccinations: An Employer Guide

With COVID-19 vaccines now available to every adult in the United States, employers are starting to see a light at the end of the tunnel after a year of uncertainty. But for employers whose workforces spent a year away from the office, a safe return to normalcy presents new legal, practical, and ethical questions.… Continue Reading
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