New Case Shows Use of Unpaid Interns Can Be a Costly Employment Decision
In a decision that is sure to shake up how many employers handle their internship programs, a federal district court has ruled that unpaid interns working in the offices of motion picture production companies were not “trainees” under the federal Fair Labor Standards Act (FLSA) or New York law, but employees who had to be paid.
Still Willing To Have Unpaid Interns?
We have repeatedly cautioned that employers who are prepared to take on unpaid interns should enter into these arrangements with their eyes fully open. New developments emphasize this yet again.
Department of Labor’s 2011 Tip Pool Regulations are Invalid, Federal Court Rules
Changes the U.S. Department of Labor made in 2011 to its tip credit regulations, extending tip pool restrictions to employers who do not take a tip credit, are invalid, the federal district court in Oregon has ruled. The court found the changes contrary to the plain language of the Fair Labor Standards Act. Oregon Restaurant & Lodging Ass’n, et al. v. DOL, No. 3:12-cv-01261 (D. Or. June 7, 2013).
"Let's Hire An Unpaid Intern," Often A Bad Idea
We’ve warned clients for some time now that businesses and other organizations should think carefully if they are considering the possibility of permitting unpaid internships. What might be described as the internship “season” is fast-approaching, so the time to consider whether and under what circumstances to get involved in these relationships is now.
FLSA Famous Last Words . . .
There has always been a great deal of mistaken conventional wisdom afoot where the federal Fair Labor Standards Act is concerned. We have blogged previously about the common misconception that one pay practice or another has just got to be lawful, because "everybody does it" that way.
Brace Yourselves, the Interns Are Coming
With the dogwoods in bloom and the azaleas not far behind, many employers are approaching the season when they will welcome summer interns. Summer internships provide invaluable opportunities for students to learn about the business world or to spend some time in an industry where they may want to build a career. But utilizing interns, if not handled carefully to comply with the law, can result in later headaches for employers and leave employers open to claims that they abused the summer workers as free labor for which they must pay.
DOL To Focus on "Tipping Policies" When Investigating Restaurant Practices
The Wage and Hour Division of the Department of Labor has identified a target for its enforcement initiatives - the restaurant industry. These initiatives specifically target how restaurants comply with the Fair Labor Standards Act, particularly with respect to tipping policies. Such initiatives have already been implemented in multiple jurisdictions, including Florida, Georgia, Illinois, Massachusetts, Utah, and the Los Angeles area, with more expected in the future.
Comp Time Bill Passes House, Heads for Senate
The U.S. House of Representatives has passed the “Working Families Flexibility Act of 2013” (H.R. 1406), which would amend the Fair Labor Standards Act of 1938 to allow private employers to provide compensatory time off to employees in lieu of overtime under certain conditions. Representative Martha Roby (R-Alabama) introduced the legislation. The bill was received in the Senate and referred to the Committee on Health, Education, Labor, and Pensions.
8th Cir: FLSA Plaintiffs Must Spell It Out
FLSA overtime claims can be tremendously difficult to defend, particularly when the plaintiff-employees don’t “recall” when or how many hours they allegedly worked. Many employers are shocked when they learn that the plaintiffs can pursue their claims without making any real proffer of such critical evidence. A decision from the Eighth Circuit last month represents a significant step in the right direction—and away from the shadowboxing that many FLSA lawsuits can involve.
Quick Quiz Answer: Day-Rate Pay Plans
The best answer to our May 8, 2013 Quick Quiz is, "$110.00". In declining percentage order, the responses were: