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Wage & Hour Law Update

Category Archives: States

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Complying with DC Wage Theft Act

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.

Origins of Wage-and-Hour Jurisprudence: Portland Terminal

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

Utah’s Highest Court Finds LLC Managers Were Not Employers Under State Wage Law

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

New York AG Schneiderman Introduces Pay Card Legislation

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

Philadelphia Joins New York City, Newark and Many Other Jurisdictions In Requiring Paid Sick Leave

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

Pennsylvania Judge Rejects Contract Claim for Meal Period Pay

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

New York Wage Board Issues Recommendation Regarding Tip Credit

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

Utah Federal Court Reiterates That Employees Are Only Entitled to Tips Under FLSA If A Tip Credit Is Applied

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

California Intermediate Appellate Court Reverses Ruling Finding “On Call” Rest Breaks Violated State Law

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

Vote To Eliminate Tip Credit In New York Fails

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

NY Legislature, Governor Cuomo Reach Agreement On Repeal of Annual Wage Notice

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

With WTPA Amendments In Limbo, New York Employers Must Prepare for Another Round of “Those (Annual) Notices”

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

Nevada Supreme Court: Exotic Dancers Are Employees Under State’s Law

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

NYS Commissioner of Labor Issues Official Wage Board Charge

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

Manhattan Restaurant Prevails On Wage-and-Hour Claims Following Trial

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 Governor Signs Executive Order Establishing Joint Task Force on Worker Misclassification and Payroll Fraud

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