Recent Blog Posts
- Compliance with the New DOL Overtime Exemption Rule May Create Unexpected Challenges for Employers In May of this year, the U.S. Department of Labor (“DOL”) announced its final rule to increase the minimum salary for white-collar exemptions, effective December 1, 2016. With less than two months to go before that new rule takes effect, employers still have time to decide how to address those otherwise exempt employees whose current salaries would not satisfy the new rule, by either increasing their salaries or converting them to non-exempt status.
The New Salary Thresholds
Effective December 1, 2016, the... More
- Time Is Running Out for Employers to Make Important Decisions to Comply with New DOL Overtime Exemption Rule In May, the Department of Labor (“DOL”) announced its final rule to increase the minimum salary for white collar exemptions. With little more than two months to go before that new rule takes effect on December 1, 2016, employers still have time to decide how to address those otherwise exempt employees whose current salaries would not satisfy the new rule by either increasing their salaries or converting them to non-exempt status.
But some of those decisions may not be easy ones. ... More
- DOL Final White Collar Exemption Rule to Take Effect on December 1, 2016 Nearly a year after the Department of Labor (“DOL”) issued its Notice of Proposed Rulemaking to address an increase in the minimum salary for white collar exemptions, the DOL has announced its final rule, to take effect on December 1, 2016.
While the earlier notice had indicated that the salary threshold for the executive, administrative, and professional exemption would be increased from $23,660 ($455 per week) to $50,440 ($970 per week), the final rule will not raise the threshold that far. ... More
- Ninth Circuit Approves Employer’s Time-Rounding Practice and Confirms That De Minimis Time Is Not Compensable On May 2, 2016, the Ninth Circuit issued a published opinion in Corbin v. Time Warner Entertainment-Advance/Newhouse Partnership. The Corbin Court best summarized the action in its opening sentence: “This case turns on $15.02 and one minute.” The “$15.02” represented the wages the plaintiff claimed he lost over a period of time as a result of the company’s neutral time-rounding policy. And the “one minute” represented the amount of off-the-clock time that the plaintiff worked, which the Court held was de... More
- Clarification of California’s Obscure “Suitable Seating” Wage Rule Likely to Lead to More Employers Providing Seats – and to More Class Actions Against Those Who Don’t We have written previously about California’s obscure wage rule pertaining to “suitable seating,” which requires that some employers provide some employees with “suitable seating” in some circumstances if the “nature of the work reasonably permits it” – and exposes employers to significant penalties if they do not do so.
Faced with a dearth of guidance on the obscure rule and with a wave of class actions following the discovery of the rule by the plaintiffs’ bar, the Ninth Circuit Court of... More
- Supreme Court Approves Use of Statistical Evidence in Affirming $5.8 Million Employee Victory in Class Action Against Tyson Foods On March 22, 2016, the United States Supreme Court issued its much anticipated decision in Tyson Foods, Inc. v. Bouaphakeo, a donning and doffing case in which a class of employees had been awarded $2.9 million following a 2011 jury trial that relied on statistical evidence. (A subsequent liquidated damages award brought the total to $5.8 million.)
In a 6-2 opinion, the Supreme Court affirmed that award. While the Supreme Court’s decision may not have been the outcome many were expecting, the... More
- Even Betty White Can Be Sued for Alleged Wage-Hour Violations It is often said that no employer is immune from a wage-hour lawsuit. That no matter how diligent an employer is about complying with wage-hour laws, there is nothing to prevent an employee from alleging that it did not comply in full with the law, leaving it to the attorneys and the court to sort things out. Perhaps the best evidence that no employer is immune from a wage-hour lawsuit came on Thursday, March 17, 2016. That is the date that... More
- Wage and Hour Division’s Latest Newsletter Confirms Its Aggressive Approach Infographic by DOL Wage and Hour Division.
The Department of Labor’s Wage and Hour Division, which is charged with enforcing federal wage laws, has just issued its latest newsletter.
Included in the newsletter is the Division’s presentation of a variety of statistics relating to its efforts.
Among the statistics reported by the Division:
It has assisted more than 1.7 million workers since 2009.
It has recovered approximately $1.6 billion for workers since 2009.
It recovered more than $246 million in back wages in 2015 alone for... More
- Taco Bell Employees Likely Are Not Celebrating Their “Victory” in California Meal and Rest Period Class Action More than a few media sources have reported on the March 10, 2016 wage-hour “victory” by a class of Taco Bell employees on meal period claims in a jury trial in the Eastern District of California. A closer review of the case and the jury verdict suggests that those employees may not be celebrating after all — and that Taco Bell may well be the victor in the case.
The trial involved claims that Taco Bell had not complied with California’s... More
- Have We Now Seen the Last of “Bag Check” Class Actions? In recent years, employers across the country have faced a great many class action and collective action lawsuits in which employees have alleged they are entitled to be paid for the time spent in security screenings before they leave their employers’ premises – but after they have already clocked out for the day. Retailers have been particularly susceptible to these claims as many require employees to undergo “bag checks” before they depart their stores to ensure that employees are not... More