The District of Columbia, like California, has followed New York’s lead in enacting a new Wage Theft Prevention Act requiring issuance of individual wage notices. Analysis of the Act and its requirements is available at the Jackson Lewis Workplace Resource Center here.
Many current FLSA compensation issues which are the subject of widespread litigation – such as the current wave of intern cases – have their legal underpinnings in Supreme Court authority decided during the 1940s in the years following the enactment of the FLSA (1938) and the Portal-to-Portal Act (1947). For example, courts seeking to interpret… Continue Reading
In New York, the cash wage due to tipped workers will increase to $7.50 at the end of the year, following an Order from acting Commissioner of Labor Mario Musolino. Commissioner Musolino accepted this recommendation from the Wage Board convened by his predecessor. This order will reduce the tip credit to $1.50/hour off the minimum… Continue Reading
When small entrepreneurial ventures collapse, disputes sometimes arise regarding who constituted an “employee” of the business and whether they were paid proper wages. As the venture has failed, the issue of individual liability often is raised. In a new decision, Utah’s highest court clarifies that Managers of a limited liability company are not liable for… Continue Reading
Following his investigation of the issue, New York Attorney General Eric Schneiderman last week proposed the Payroll Card Act, which would require employers: To permit employees to elect whether to be paid through a payroll card, direct deposit, or to receive a paper check; To provide notice of payroll card program terms and conditions, including… Continue Reading
On February 12, Mayor Michael Nutter signed a bill requiring Philadelphia employers with 10 or more employees to offer paid sick leave, joining neighbors New York City and Newark, New Jersey, as well as other states and localities, in enacting such a requirement. The Philadelphia bill takes effect in mid-May, and requires that eligible employees accrue paid… Continue Reading
Hospitals and other medical service providers continue to face waves of wage-and-hour claims concerning meal break practices, with non-exempt care providers alleging that they were unable to take unpaid meal periods, or that those meal periods were otherwise compensable. A new decision from Judge Jeffrey L. Schmehl of the Eastern District of Pennsylvania rejects a… Continue Reading
Completing its task assigned by former Commissioner of Labor Peter Rivera, the current New York Wage Board has issued its recommended findings to the Commissioner with respect to tip credit issues. Most importantly for hospitality employers – an industry sector which includes many small, low-margin businesses – if approved by the Commissioner, the available tip… Continue Reading
While many state laws regulate the distribution of gratuities (as well as service charges and other fees), the overwhelming judicial view, as originally set forth by the Ninth Circuit in Cumbie v. Woody Woo and joined by district courts in other jurisdictions, holds that an employee’s right to tips under the FLSA flows exclusively from… Continue Reading
Joining a decision issued last fall by Southern District of New York Judge Andrew Carter, Judge Ronnie Abrams has also ruled that time spent by New York City employees in alcohol counseling required by their job did not constitute “work.” Gibbs v. City of New York, 2015 U.S. Dist. LEXIS 7960 (S.D.N.Y. Jan. 23, 2015)…. Continue Reading
Visit the Jackson Lewis Workplace Resource Center here for a detailed analysis of the New Jersey Supreme Court’s decision in Hargrove v. Sleepy’s, LLC, 2015 N.J. LEXIS 38 (N.J. Jan. 14, 2015), finding the “ABC test” for contractor status applicable to claims brought under New Jersey state wage statutes.
Confronting a novel issue of state law in the wake of the California Supreme Court’s 2012 decision addressing California’s meal-and-rest break requirements, an appellate panel of the California Court of Appeal’s Second District ruled that a security firm did not violate rest break requirements where its security guards were “on call” during the required rest… Continue Reading
As reported by our colleagues at the New York State Restaurant Association, the current Wage Board, convened to examine the state of the tip credit under New York law, today voted on, but ultimately rejected, a motion to eliminate the tip credit entirely. Tip credits under federal and state wage laws permit an employer to… Continue Reading
The legality of a given employee’s participation in a tip pool under the FLSA turns on whether the participants are “Tipped employees” under 29 U.S.C. § 203(t). The specific question is whether they “engaged in an occupation in which [they] customarily and regularly receive more than $ 30 a month in tips.” A new decision… Continue Reading
Business advocacy groups advise that the New York Legislature and Governor Cuomo have reached agreement on the Legislature’s already-passed legislation repealing the Wage Theft Prevention Act’s annual notice requirement. Indeed, the Legislature’s web site confirms that S.5885-B has been delivered to the Governor. Business groups believe a “chapter amendment” will be forthcoming in January, modifying… Continue Reading
Click here for a summary of the wage rate changes triggered by the previously-scheduled December 31, 2014 increase to the New York minimum wage.
Despite passage in June by both chambers of the New York State Legislature, legislation repealing the 2011 Wage Theft Prevention Act’s “annual wage notice” has yet to take effect. In fact, as of this writing, Governor Cuomo has not been presented with the bill for signature. Because the legislation only takes effect 60 days after… Continue Reading
Joining sister Circuits, on Wednesday the Court of Appeals for the Ninth Circuit ruled that an employee must set forth specific information regarding his or her work hours to properly plead an FLSA claim for unpaid minimum wages or overtime under the Iqbal doctrine. Landers v. Quality Communs., Inc., 2014 U.S. App. LEXIS 21440 (9th… Continue Reading
In a setback for that state’s thriving adult entertainment business, the Nevada Supreme Court yesterday ruled that Sapphire Gentleman’s Club improperly classified its 6000+ semi-nude performers as independent contractors rather than employees under Nevada’s minimum wage law. Terry et al. v. Sapphire Gentlemen’s Club et al., case number 59214, 10/30/14. The Nevada court, citing policy… Continue Reading
As the debate over the minimum wage and the role tip income should play in satisfying the minimum wage obligation for tipped employees continues on the federal and state level, a restaurant in Minnesota recently joined the fray. Rather than raise prices gradually in response to the recent increase to the Minnesota state minimum wage,… Continue Reading
On Monday, New York Commissioner of Labor Peter Rivera formally issued his Charge to the recently convened 2014 Wage Board. The Charge, available here, asks the Board to answer the following question: What modifications, if any, should be made to the required cash wage rates and the allowable credits for tips, meals, and lodging, for… Continue Reading
While wage-and-hour laws, like other employment laws. are generally “broad” and intended to foster the goal of worker protection, the scope of such laws is not limitless, as demonstrated by a recent decision from an Indiana appeals court addressing an alleged multiple or joint employer scenario. Rodriguez v. S. Dunes Golf, LLC, 2014 Ind. App…. Continue Reading
Demoralized by the attendant costs of litigation and a shifting compliance environment in numerous jurisdictions, many hospitality industry employers have resolved wage-and-hour lawsuits brought in New York City and elsewhere over the last number of years. Bucking this trend, one such employer recently successfully defended its wage practices at trial. Mendez v. Int’l Food House,… Continue Reading
Virginia employers may see more robust worker misclassification enforcement and enhanced cooperation between state agencies with respect to misclassification issues in the near future. Following the lead of the federal government and other states, Governor Terry McAuliffe’s recent Executive Order, signed on August 14, 2014, calls for the establishment of an interagency task force on… Continue Reading