Recent Blog Posts
- Governor Cuomo Announces Proposal to Crack Down on Wage Theft Continue Reading… On January 24, 2019, Governor Cuomo’s office issued a press release announcing a new proposal to be included in the 2020 Executive Budget aimed at cracking down on wage theft and bolstering the State’s efforts to hold accountable employers who attempt to improperly withhold wages. This proposal would increase the criminal penalties for employers who either knowingly or intentionally commit wage theft violations to bring them in line with other forms of theft.
Presently, only employers who commit repeated wage theft... More
- New Prime Inc. v. Oliveira: The Supreme Court Applies the Federal Arbitration Act’s Transportation Workers Exclusion to Independent Contractors Continue Reading… On January 15, 2019, the U.S. Supreme Court issued a unanimous decision in New Prime Inc. v. Oliveira, a case concerning the enforceability of arbitration agreements.
Petitioner New Prime Inc. (“New Prime”) is an interstate trucking company that engaged Dominic Oliveira to perform work as a driver pursuant to an “Independent Contractor Operating Agreement,” containing both an arbitration clause and a delegation clause giving the arbitrator authority to decide threshold questions of arbitrability.
Oliveira filed a putative class action against New Prime... More
- New DOL Opinion Letters Address Varying Average Hourly Rate and Ministerial Exception Continue Reading… True to its promise last year, the U.S. Department of Labor’s Wage and Hour Division (the “WHD”) continues to issue a steady stream of opinion letters designed to offer practical guidance to employers on specific wage and hour issues solicited by employers. This past week, the WHD issued two new opinion letters concerning the Fair Labor and Standards Act (“FLSA”), where one addresses an employer’s hourly pay methodology vis-à-vis the FLSA’s minimum wage requirement, and the other the ministerial exception... More
- Act Now Advisory: New York Wage Deduction Rules Continue Reading… On December 7, 2018, Governor Andrew M. Cuomo signed into law an amendment to New York Labor Law (“NYLL”) Section 193 (“NY Wage Deduction Law”) extending the NY Wage Deduction Law, which had expired on November 6, 2018, until November 6, 2020.
Introduced in 2012, the NY Wage Deduction Law amended the NYLL to permit employers to make certain deductions from the wages of their employees, including deductions for accidental overpayments, salary advances (including advances of vacation time), and insurance premiums. The NY... More
- New York City Sets Minimum Wage for Independent Contractors of Ride-Hailing Companies Continue Reading… On December 4, 2018, New York City’s Taxi and Limousine Commission (“TLC”) voted to require ride-hailing companies operating in New York City to compensate its drivers who are treated as independent contractors, and not employees, on a per-minute and –mile payment formula, which will result in a $17.22 per hour wage floor.
This new rule is scheduled to take effect on December 31, 2018.
This new minimum wage for independent contractor drivers who operate vehicles on behalf of ride-hailing companies – including... More
- Act Now Advisory: New York’s Salary Threshold for Exemption Will Increase on December 31, 2018 Continue Reading… Effective December 31, 2018, New York State’s salary basis threshold for exempt executive and administrative employees will increase again, as a part of amendments to the minimum wage orders put in place in 2016. Employers must increase the salaries of employees classified as exempt under the executive and administrative exemptions by the end of the year to maintain these exemptions.
The increases to New York’s salary basis threshold for the executive and administrative exemptions will take effect as follows:
Employers in New York City
- DOL Issues Field Assistance Bulletin Providing Guidance on Classification of Home Care, Nurse, or Caregiver Registries Under the FLSA Continue Reading… Last Friday, the Department of Labor (“DOL”) issued Field Assistance Bulletin No. 2018-4 to help guide the DOL Wage and Hour Division field staff as to the correct classification of home care, nurse, or caregiver registries under the Fair Labor Standards Act (“FLSA”). This is the most recent piece of guidance on a topic first addressed by the DOL in a 1975 Opinion Letter. The bulletin is noteworthy in two respects. First, it confirms that the DOL continues to view... More
- U.S. DOL Issues Three Opinion Letters After Nine-Year Hiatus Continue Reading… On April 12, 2018, the Wage and Hour Division of the U.S. Department of Labor (“DOL”) issued the first Opinion Letters since the Bush administration, as well as a new Fact Sheet. The Obama administration formally abandoned Opinion Letters in 2010, but Secretary of Labor Alexander Acosta has restored the practice of issuing these guidance documents. Opinion Letters, as Secretary Acosta states in the DOL’s April 12 press release, are meant to explain “how an agency will apply the law... More
- Initial Discovery Guidelines May Fast-Track Early Disclosure Requirements in Individual FLSA Cases Continue Reading… Depending on the jurisdictions within which they operate, certain employers and their counsel will soon see a significant change in early mandatory discovery requirements in individual wage-hour cases brought under the Fair Labor Standards Act (“FLSA”).
A new set of initial discovery protocols recently published by the Federal Judicial Center (“FJC”), entitled Initial Discovery Protocols For Fair Labor Standards Act Cases Not Pleaded As Collective Actions (“FLSA Protocols”), available here, expands a party’s initial disclosure requirements to include additional documents and... More
- U.S. DOL Announces Proposed Rule to Partially Rescind Tip Pool Regulations Continue Reading… Federal regulations have long provided that employees whose wages are subject to a tip credit must retain all tips they receive, with the exception that customarily tipped employees — i.e. front-of the-house service employees — are permitted to share in tips received.
In 2011, the U.S. Department of Labor (“DOL”) amended its tip regulations to limit tip pool participation to front-of-the-house employees regardless of whether a tip credit was applied to their wages.
Employers and hospitality industry advocacy groups reacted by filing... More