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Jim Coleman: Twitter wage-hour hero

For a guy who doesn’t tweet, Jim Coleman – head of Constangy’s Metro Washington D.C. Office and co-chair of our Wage and Hour Practice Group – has suddenly become an awfully big Twitter celeb.

Lawmakers Introduce Worker Misclassification Legislation

Two weeks after the U.S. Department of Labor issued an Administrator's Interpretation cautioning that "most workers are employees," Senators Bob Casey (D-PA) and Al Franken (D-MN) introduced a bill targeting worker misclassification. The Payroll Fraud Prevention Act of 2015 would make a number of amendments to the Fair Labor Standards Act to require employers to delineate employees from non-employee contractors, impose additional employer reporting requirements, and establish new penalties for misclassification violations.

Can Employers Offer Compensatory Time to Exempt Employees? [Wage & Hour FAQ]

Recently, two blog readers asked a question about the use of compensatory (comp) time in the private sector during a discussion about tracking exempt employees’ hours worked. One reader’s company tracked exempt employees’ hours worked, and permitted the employees to “flex” any hours worked in excess of a normal workweek, either later that week or in future weeks on an hour-for-hour basis, subject to work loads and scheduling requirements.

Second Circuit Adopts New 'Primary Beneficiary Test' for Determining Whether Unpaid Interns Are Employees

A recent wave of multimillion-dollar lawsuits brought against employers by unpaid interns demanding compensation for their work has resulted in settlements but no definitive word from the federal courts on when interns should be considered employees. Despite the volume of litigation in this area, the factors that federal district courts have considered to determine whether an intern must be paid have varied, leaving the issue unsettled — until this month, when the U.S. Court of Appeals for the Second Circuit ruled on the issue. On July 2, 2015, the Second Circuit in Glatt v. Fox Searchlight Pictures held that a new test — the “primary beneficiary test” — should be used to determine whether an intern must be considered an employee and thus paid.

Restaurant Industry Alert: Wage Board Proposal - Fast Food Workers' Minimum Wage May Rise to $15 in New York City by 2018

Executive Summary: On July 22, 2015, the New York State Department of Labor's (NYSDOL) Wage Board voted to recommend a 171 percent increase in the minimum wage for fast food workers in New York City (NYC), from the current hourly rate of $8.75 to $15.00 by 2018. If the Wage Board's recommendation becomes law (it would go into effect December 31, 2015 if approved by Commissioner of Labor Musolino), the minimum wage for fast food workers would first jump to $10.50 by year's end, increasing $1.50 annually thereafter until reaching $15 per hour by July 1, 2021, in all of New York State. The Department of Labor's press release indicates this decision may be made as early as Monday, July 27, 2015.

Littler's Tammy McCutchen Testifies that the DOL's Approach in Proposed Overtime Rule is "Unprecedented"

The U.S. Department of Labor's methodology and minimum salary threshold set forth in its proposed revisions to the Fair Labor Standards Act's "white collar" exemptions are "unprecedented in the FLSA’s 77-year history," explained Littler Principal Tammy McCutchen during a Subcommittee on Workforce Protections hearing. The DOL's Wage and Hour Division released its proposed rule last month. Under the terms of the proposal, the agency would set the minimum salary threshold used to separate exempt from non-exempt employees at the 40th percentile of the salary earned by all non-hourly paid employees, and create a mechanism for annual automatic increases. By the year 2016, when a final rule is expected to take effect, this calculation would result in a minimum salary threshold of $970 per week, or $50,440 per year.

Document review attorneys may not be exempt from OT, court says

Uh-oh. Lawyers who do document review may not be exempt from the overtime requirements of the Fair Labor Standards Act, according to a court decision issued yesterday.

Wage and Hour Basics Series: The "Fee Basis" and the Proposed FLSA Regulations

As we have discussed in the past, to be eligible for one of the “white collar” exemptions (executive, administrative, or professional) or as a highly compensated employee (HCE),

Second Circuit Holds That Contract Attorney Properly Alleged Misclassification Claim

Reversing Judge Richard J. Sullivan’s 2014 decision, a panel of the Court of Appeals for the Second Circuit ruled today that a contract attorney who provided document review services on a multi-district litigation for a law firm through a third party staffing firm colorably alleged an FLSA violation based on his assertion that the document review services he provided did not constitute legal work. Lola, et al. v. Skadden, Arps, et ano., 2d Cir., No. 14-3845, 07/23/2015.

Overtime Rule Could Harm Employers, Witnesses Warn Lawmakers

The US Department of Labor's proposal to roughly double the minimum salary for most employees exempt from the overtime requirements of the Fair Labor Standards Act (FLSA) will have many unintended consequences, experts told Congress today.