Late last month, the Department of Labor released its Fall 2014 Agency Rule List that included a range of proposed regulations covering everything from the FMLA definition of “spouse” to labor union annual reports and persuader rules. Most importantly for readers of this blog, though, the DOL added an entry to its list for a proposed rule to implement President Obama’s directive to modernize and streamline FLSA regulations for executive, administrative, and professional employees. The DOL now expects to publish the rule by the end of February 2015, according to this filing with the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA).
Articles about the federal Fair Labor Standards Act (FLSA) an other topics related to wage and hours issues.
Misclassification of Dancers Results in $10.8 Million-Plus Award
Employers across the country are increasingly utilizing independent contractors to fill an ever-expanding array of positions. These jobs range from sophisticated, high-tech engineers and logistics professionals to doctors, nurses, construction workers, and food service providers. But employers who seek to classify workers as independent contractors to avoid the expenditures associated with payroll, taxes, benefits, and capital improvements, or feel further incentivized to do so by the Affordable Care Act, should take note: Courts are sending a clear message that such practices can be costly.
The Minimum Wage in 2015: Looking Ahead to State Increases, Other Changes
With the election season behind us and 2015 fast approaching, employers need to start looking ahead to the new year when, traditionally, a host of new laws take effect. As we discussed after the election, 2014 was a busy year for wage and hour laws, and 2015 will be no different. Four states—Alaska, Arkansas, Nebraska, and South Dakota—voted to increase their minimum wages beginning as early as January 1, 2015. Those are not the only states that will see changes to the minimum wage in 2015, though.
Feed Me! Thanksgiving Turkeys, Free Lunches, and Wage and Hour Law
With the Thanksgiving holiday ahead of us, we have reached the time of year where some employers start handing out Thanksgiving turkeys, holiday hams, and other gifts to employees, while others provide free or discounted lunches or other meals. You will find plenty of articles extolling the productivity virtues of well-fed employees. Employers in various industries—from hospitality to high technology to manufacturing—often have many good business reasons to provide meals, from cutting back on waste to teambuilding.
Wage and Hour Cases to Watch at the Supreme Court: Part 2–Perez v. Mortgage Bankers Association
As we discussed recently, this month marked the opening of the Supreme Court’s new term. For employment law practitioners, this session will be particularly busy with seven cases analyzing a range of employment questions, from the scope of the EEOC’s duty to conciliate discrimination claims to the applicability of whistleblower protection laws and the Pregnancy Discrimination Act. In Part 1 of this series, we discussed Integrity Staffing Solutions, Inc. v. Busk.
9th Circuit Joins Other Circuits Requiring Facts in FLSA Complaints
The U.S. Court of Appeals for the Ninth Circuit has joined the First, Second, and Third Circuits in requiring employees asserting claims for unpaid overtime or minimum wage under the Fair Labor Standards Act to allege facts showing at least one week when they worked in excess of 40 hours and were not paid overtime or minimum wage.
Video Interview: Discussing the Election’s Impact on Wage & Hour Laws with LXBN TV
Following up on my post on the subject, I had the opportunity to discuss the impact of the 2014 Election on wage and hour laws around the country.
The Future of the Minimum Wage – 2015 and Beyond
2014 has been “The Year of the Minimum Wage.” Protests throughout the country, with workers calling for increased wages, drew significant media attention. President Obama and Democrats in both legislative chambers advocated for increasing the minimum wage under the federal Fair Labor Standards Act (FLSA) – which was last raised in July 2009 – from $7.25 to $10.10 in increments over time. Due to the gridlock in Washington, legislative efforts failed, though the president exercised his executive authority to increase the minimum wage for federal contractors. In the absence of federal action, state legislators acted. Roughly 20 percent of state-level jurisdictions passed minimum wage laws in 2014. Unlike prior legislative actions, which resulted in a single increase, each minimum wage bill enacted in 2014 called for multiple increases, with some also requiring subsequent annual increases. Moreover, a handful of states put the question of whether to increase the state minimum wage before voters in the November 4, 2014 general election.
If I was Secretary of Labor: Fixing the FLSA with a Safe Harbor
Last week, I answered some of the questions that we have been receiving about the new FLSA regulations, but I saved one that I hear almost everywhere I go: what should the Department of Labor do with the FLSA? Last week, I said “start over.” Of course, that’s not going to happen. Scrapping the FLSA and starting over is not an option right now, realistically or politically. If I was Secretary of Labor, what would I do? Develop a safe harbor for employers.
Fear and Loathing in D.C.: More Thoughts and Predictions about the New FLSA Regulations
For most of the year, we have been discussing the upcoming FLSA regulations and what employers can expect related to the white collar exemptions. Recently, the DOL delayed the release of proposed rules, potentially for several months. The DOL’s announcement has raised a host of questions, some of which I discussed with SHRM’s legal editor, Allen Smith, this week. The DOL’s own “savage journey to the heart of the American Dream”—at least the part of it that defines how you must be paid while chasing it—continues to raise questions for employers (apologies to Hunter S. Thompson fans…I couldn’t resist). With Election Day upon us, it is a good time to take a deeper look at this issue and review some of the top questions we have received on this topic.
Wage and Hour 2014 Election Results Roundup: Minimum Wage, Paid Sick Leave Big Winners
Before the election, we talked about minimum wage and paid sick leave initiatives on the rise, including some important ballot issues. With most of the results tallied, it appears that the Republicans weren’t the only big winners in the 2014 midterm elections last night. While the GOP retaking the Senate majority and reaching historic majority margins in the House garnered most of the national headlines, if you look just below the fold, minimum wage and paid sick leave initiatives were the other big winners of the night.
Wage and Hour Cases to Watch at the Supreme Court: Part 1 — Integrity Staffing
This month marked the opening of the Supreme Court’s new term. For employment law practitioners, this session will be particularly busy with seven cases analyzing a range of employment questions, from the scope of the EEOC’s duty to conciliate discrimination claims (Mach Mining v. EEOC, oral argument set for January 2015 or later) to the applicability of a whistleblower protection law to employees who make disclosures “specifically prohibited by law” (Dep’t of Homeland Security v. MacLean, oral argument November 8). Over at the FMLA Insights blog, my colleague Jeff Nowak discusses Young v. UPS, where the Court will consider whether, and in what circumstances, the Pregnancy Discrimination Act requires an employer that provides work accommodations to non-pregnant employees with work limitations to also provide work accommodations to pregnant employees with similar work limitations.
Department of Labor Publishes Final Rule to Raise Minimum Wage for Certain Federal Contractors and Subcontractors
Executive Summary: The U.S. Department of Labor issued final regulations on October 1, 2014 to implement Executive Order 13658, Establishing a Minimum Wage for Contractors. President Obama signed the Executive Order on February 12, 2014. The Executive Order raises the hourly minimum wage that covered contractors pay to workers performing work on covered federal contracts to $10.10 per hour, effective January 1, 2015. Beginning January 1, 2016 and annually thereafter, the Secretary of Labor will determine the amount of the minimum wage on covered contracts. The Executive Order applies only to new contracts and replacements for expiring contracts with the federal government that result from solicitations issued on or after January 1, 2015, or to contracts that are awarded outside the solicitation process on or after January 1, 2015. Below are highlights of the final rule.
Tech Support – The FLSA’s Specialized Exemption
The Fair Labor Standards Act (FLSA) provides several exemptions from overtime requirements for employees whose job duties meet specific tests. Most employers are familiar with the standard “white- collar” exemptions – including the “executive” and “administrative” exemptions – and the job duties and “salary basis” tests required to satisfy those exemptions.
DOL Makes It Official: New FLSA Regulations Delayed Until 2015
Back in late May, we told you that the Department of Labor had released its required Semiannual Regulatory Agenda. The Agenda, which is not binding on the DOL, included several FLSA-related items. Most importantly, the DOL listed its plans to address the “white collar” overtime exemption regulations with proposed rules next month, in November 2014. The section, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees,” appears on page 56 and 57 of the Agenda. At the time, we predicted that “even with a short 30-day comment period and a quick turnaround on a final rule, the DOL is unlikely to have any new regulation in place before spring 2015.”