Recent Blog Posts
- 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
- U.S. Department of Labor Rescinds Guidance Regarding “Side Work” and the FLSA’s Tip Credit in Restaurants Continue Reading… Under the Fair Labor Standards Act (“FLSA”), employers can satisfy their minimum wage obligations to tipped employees by paying them a tipped wage of as low as $2.13 per hour, so long as the employees earn enough in tips to make up the difference between the tipped wage and the full minimum wage. (Other conditions apply that are not important here.) Back in 1988, the U.S. Department of Labor’s Wage and Hour Division amended its Field Operations Handbook, the agency’s... More
- Seventh Circuit Concludes That Courts, Not Arbitrators, Must Determine Whether Class Claims Are to Be Arbitrated Continue Reading… Joining several other federal appellate courts including the Fourth and Ninth Circuits , on October 22, 2018 the Seventh Circuit concluded in Herrington v. Waterstone Mortgage Corporation, No. 17-3609 (7th Cir. Oct. 22, 2018) that the arbitrability of a class claim is one for the court to decide, not the arbitrator. In so doing, the court placed in jeopardy a $10 million arbitration award in a wage-hour case.
Herrington originally filed suit against Waterstone, alleging that Waterstone failed to pay her and other... More
- California Court of Appeal Rejects Dynamex’s “ABC” Test for Independent Contractors for Claims That Do Not Arise Under a Wage Order Continue Reading… In April 2018, we wrote about the California Supreme Court’s decision in Dynamex Operations West, Inc. v. Superior Court, which had clarified the standard for determining whether workers in California should be classified as employees or as independent contractors for purposes of the wage orders adopted by California’s Industrial Welfare Commission (“IWC”).
In Dynamex, the Court adopted the “ABC” test that has been used in some other jurisdictions. Because Dynamex had adopted the “ABC” test for claims arising under IWC wage... More
- D.C. Council Gives Initial Approval to Legislation Overturning Voter-Approved Elimination of Tip Credit Continue Reading… In our July 9, 2018 post we reported that a seven-member majority of the D.C. Council had introduced a bill, Bill 22-0913 (Tipped Wage Workers Fairness Amendment Act of 2018) to repeal Initiative 77, an initiative that District of Columbia voters approved on June 27, 2018 that would incrementally increase the minimum cash wage for tipped workers to $15.00 per hour by July 1, 2025 and effectively eliminate the tip credit starting July 1, 2026. We also noted that no... More
- California Court of Appeal Concludes that Individuals Can Be Personally Liable for Civil Penalties for Wage-Hour Violations Continue Reading… The question whether an individual may be held liable for alleged wage-hour violations is one that occasionally arises in class action litigation – and, for obvious reasons, it is one that is particularly important to individuals who own entities or who are responsible for overseeing wage-hour compliance.
In Atempa v. Pedrazzani, the California Court of Appeal held that persons responsible for overtime and/or minimum wage violations in fact can be held personally liable for civil penalties, regardless of whether they were... More
- Industry Spotlights Webinar Series: Wage and Hour Developments Impacting Hospitality and Home Health Care Industries Continue Reading… In 2018, we have seen important new wage and hour developments unfolding on a seemingly weekly basis. To help you stay up to date and out of the crosshairs of the plaintiffs’ bar, we invite you to join Epstein Becker Green’s Employment, Labor & Workforce Management Webinar Series presentation for September. Presented by our Wage and Hour practice group, this webinar will focus on wage and hour developments affecting the hospitality and home health care industries, although much of the... More
- DOL Announces “Listening Sessions” As It Mulls Changing White Collar Exemption Regulations Continue Reading… Changes to the white collar exemptions under the Fair Labor Standards Act (“FLSA”) are coming slowly. Very, very slowly. Back in May 2016, under the Obama Administration, the Department of Labor issued a Final Rule updating the regulations for the FLSA’s minimum wage and overtime executive, administrative, and professional exemptions. That rule would, among other things, have increased the minimum salary required for most employees within these exemptions from $455 a week ($23,660 a year) to $913 a week ($47,476... More
- California Court of Appeal Upholds Meal Period Waiver in Collective Bargaining Agreement Continue Reading… On August 13, 2018, in Ehret v. WinCo Foods, the California Court of Appeal held that a provision in a collective bargaining agreement (“CBA”) regarding employees’ meal periods during shifts lasting between five and six hours effectively waived employees’ rights under California Labor Code section 512. In so holding, the Court held that the waiver in question passed the “clear and unmistakable” standard used to determine whether a provision in a CBA is intended to waive a statutorily protected right.... More
- Sixth Circuit Rejects Argument That FLSA Bars Individual Arbitration Agreements Continue Reading… Three months ago, the United States Supreme Court issued its decision in Epic Systems Corp. v. Lewis, holding that the National Labor Relations Act (“NLRA”) does not prevent the use of arbitration agreements with class and collective action waivers covered by the Federal Arbitration Act (“FAA”). (See our discussion of Epic here.) The Court of Appeals for the Sixth Circuit has now similarly concluded in Gaffers v. Kelly Services, Inc., that the Fair Labor Standards Act (“FLSA”) does not bar such... More