New USDOL Fact Sheet Discusses FLSA Retaliation

Reflecting the Supreme Court’s 2011 decision regarding the scope of protected activity under the FLSA, the U.S. Department of Labor has issued Fact Sheet 77A, summarizing the Department’s view of the FLSA’s anti-retaliation provision.    Simultaneously, the Department also issued fact sheets addressing retaliation under the FMLA and the Migrant and Seasonal Agricultural Worker Protection Act.

Fact Sheet 77A sets forth the DOL’s assessment of the current legal landscape, including the Kasten decision, holding that the FLSA’s anti-retaliation provision (29 U.S.C. § 215(a)(3)) protects complaining employees “regardless of whether the complaint is made orally or in writing.” The fact sheet goes further, addressing the question the Supreme Court declined to answer in Kasten: namely, whether such written or oral complaints can be protected if made internally, or whether to be protected such complaint must be made formally to the Department of Labor or through a formal filing of a claim (i.e., a lawsuit). In the DOL’s view “most courts have ruled that internal complaints to an employer are also protected.” While this view has been endorsed in multiple forums, notably, courts within the Second Circuit have continued to adhere to the Second Circuit’s 1993 decision in Lambert v. Genesee Hosp., 10 F.3d 46, 55 (2d Cir. 1993), holding that a formal complaint is required. Son v. Reina Bijoux, Inc., 2011 U.S. Dist. LEXIS 116417 at * 12-14 (S.D.N.Y. Oct. 7, 2011) citing Lambert

The DOL’s fact sheet clarifies the Department’s position, but is not “news” to employers who monitor this space or otherwise educate themselves on these issues. Such employers also know that many state laws, including New York’s retaliation provision as modified by the 2011 Wage Theft Prevention Act, provide for greater protections than those contemplated under federal law and discussed in Fact Sheet 77A.

The New York State Department of Labor in 2011: New Rules, Stiffer Penalties

As reported here and here, the New York Department of Labor will have a full plate in 2011 enforcing both the new Hospitality Industry Wage Order (applicable to industry employers) and the Wage Theft Prevention Act (applicable to all employers in New York). The Hospitality Wage Order modifies many of the rules governing industry employers, and the dangers of non-compliance are magnified by the Wage Theft Act, which increases the penalties for all violations of Labor Law Article 6. Under the Act, liquidated damages for such violations increase from 25% to 100%. The Act also expands the wage notification requirements of New York Labor Law § 195.

In addition to liability for unpaid wages, penalties and attorneys’ fees, New York employers also could be faced with inclusion on the NYSDOL’s “Non-Compliant Labor Standards Employer Search” Internet database. See http://lsempviolations.labor.ny.gov/LSEmpViolations/index.faces. Violators are listed on this web site for six years.

Wage Theft Prevention Act: Expanded Coverage

As previously noted here, New York Governor David Paterson has signed into law the Wage Theft Prevention Act.  The new law amends the New York Labor Law to create new recordkeeping obligations for employers, as well as significantly greater damages for violations of the Labor Law than previously were available.  

An expanded analysis of the Act is now available on www.JacksonLewis.com by clicking here.

New York Enacts State-Wide "Wage Theft" Act

On December 13, New York Governor David Paterson signed into law the “Wage Theft Prevention Act,” a bill which provides new and expanded protections for workers under the New York State Labor Law. 

Among other provisions, the new law (which takes effect in 120 days) includes the following provisions:

·         An increase in the liquidated damages penalty for violations of Labor Law Article 6 from 25% to 100% -- the amount available under the FLSA:

·         Any employee not provided with the new hire “rate of pay” notice required by N.Y. Labor Law § 195 may bring a cause of action to recover $50 for each workweek that such a violation occurs, as well as attorneys fees;

·         The notice previously required by Labor Law § 195 must now be provided to each employee in English and the language “identified by each employee as the primary language of such employee;” and

·         Expanded wage statements which include, among other new requirements, the employee’s basis of pay, whether hourly, piece rate, salary or other basis, and, for non-exempt employees, the applicable overtime rate. Under the new law, any change to an employee’s regular rate must be reflected in the wage statement, or in a revised Labor Law § 195 notice. 

We will provide further details regarding the obligations posed by this new law in the near future on www.JacksonLewis.com.