Archives: Minimum Wage

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Ninth Circuit Concurs that Workweek, Not Individual Hour, is Relevant Timeframe for Determination of Minimum Wage Compliance

In an issue of first impression, the Ninth Circuit joined the Second, Fourth, Eighth and D.C. Circuits (and the position adopted by the Department of Labor) that, in determining whether an employer has complied with the minimum wage provisions of the Fair Labor Standards Act (“FLSA”), the proper inquiry is whether the total compensation for … Continue Reading

DOL Confirms to OMB It Will Reverse Course on Yet Another Controversial Regulation, New Rule Will Reduce Restrictions on Tip Sharing

In recent years, one significant issue that has plagued industries employing tipped employees is whether the employers must ensure that tipped employees retain all of their tips even if the company is not using the employee’s tips to satisfy part of the minimum wage pursuant to the FLSA’s “tip credit” provision, 29 U.S.C. § 203(m). … Continue Reading

Hair Today, Gone Tomorrow: Seventh Circuit Rejects Claim That Cosmetology Trainees Were Employees

Former cosmetology students are not employees entitled to pay under the FLSA and various state laws, the Seventh Circuit holds, rejecting the Department of Labor’s six-factor test but declining to adopt any bright-line test. Hollins v. Regency Corporation, 2017 U.S. App. LEXIS 15076 (7th Cir. Aug. 14, 2017). The plaintiff was a student enrolled at … Continue Reading

Department Of Labor To Rescind 2011 Tip Pooling Regulation

Today the Trump Administration, through the Office of Management and Budget’s Office of Information and Regulatory Affairs, released the federal government’s semi-annual Unified Agenda of Regulatory and Deregulatory Actions. This agenda provides public notice of the regulatory actions the various agencies of the Executive Branch anticipate taking in the coming year. Among the items listed … Continue Reading

Fight for $15 Plans Protests, ‘Civil Disobedience’ on November 29

*Philip B. Rosen and Howard M. Bloom contributed to this article. Fight for $15, the four-year-old movement to secure a minimum wage of $15 an hour, has announced plans for demonstrations, strikes, and protests in 340 cities across the country on November 29.  Tens of thousands of employees are expected to participate.  The current federal … Continue Reading

Federal Court In Florida Is Latest To Reject DOL Regulation, Finds FLSA Does Not Require That Employees Receiving Full Minimum Wage Retain All Tips

While Department of Labor regulations interpreting the FLSA remain the primary source of employer guidance regarding the Act’s requirements, they are not necessarily the final word on what federal wage law requires. This is so even where they have been subject to “notice and comment,” triggering a higher level of judicial deference.  A federal court … Continue Reading

Federal Court In Georgia Rejects DOL Regulation, Rules FLSA Does Not Require That Employees Receiving Full Minimum Wage Retain All Tips

On July 26, 2016, Judge William S. Duffey of the United States District Court for the Northern District of Georgia issued a decision holding that an employer does not have to ensure tipped employees retain all of their tips if the company is not using the employee’s tips to satisfy part of the minimum wage … Continue Reading

Minimum Wages To Rise On Both Coasts

Over the past few years, numerous states and municipalities have increased the statutory minimum wage.  Further, through Executive Order, President Obama increased the federal minimum wage applicable to federal contractors.  Consistent with this trend, the governors of both California and New York have now reached new legislative deals with their respective legislative branches which provide … Continue Reading

Birmingham Implements Wage Ordinance Effective Immediately, Subject To Possible Overturning at State Level

As discussed in detail on the Jackson Lewis web site, the Birmingham City Council – attempting to push through a wage increase within the municipality ahead of rule-making at the state level designed to preempt such city laws – has passed an ordinance increasing the minimum wage within city limits to $10.10 effective immediately.  Full … Continue Reading

New York Industrial Board of Appeals Upholds Fast Food Wage Order

In an eight-page decision dated today, New York’s Industrial Board of Appeals (the “IBA,” an arm of the state Department of Labor) upheld the Commissioner of Labor’s Fast Food Wage Order.  In so doing, the IBA rejected challenges to the Order from the National Restaurant Association based on: 1) the composition of the Fast Food … Continue Reading

California Federal Court: Cosmetology and Hair Design Students Not “Employees” Entitled to Minimum Wage

Joining decisions from other parts of the country, a California federal judge has held that former cosmetology and “hair design” students were not “employees” under the Fair Labor Standards Act or the wage-and-hour laws of California and Nevada entitled to minimum wage. Benjamin v. B & H Education, Inc., et al., 2015 U.S. Dist. LEXIS … Continue Reading

Prominent NY Restaurateur Eliminates Tipping

As New York’s hospitality industry prepares for a reduced tip credit and a fast food minimum wage, one New York restaurateur has announced its intention to eliminate tipping and thus, by extension, use of the tip credit: New York City’s Danny Meyer.  This lengthy Eater feature discusses Meyer’s audacious new Hospitality Included program, noting the … Continue Reading

NY Commissioner of Labor Adopts Fast Food Wage Board Report

Today, Acting Commissioner of Labor Mario Musolino adopted the Fast Food Wage Board’s July recommendations, in an Order available here.  The Order takes effect within thirty days of its publication in ten New York newspapers.  Employers covered – or arguably covered – by the definition of “Fast Food Establishment” contained in the Wage Board’s recommendations … Continue Reading

DC Circuit Upholds DOL’s End to Companionship Exemption for Third-Party Agencies

The U.S. Court of Appeals for the D.C. Circuit today ruled that the U.S. Department of Labor’s decision to  reverse its prior position and extend the FLSA’s minimum wage and overtime protections to employees of third-party agencies who provide companionship services and live-in care within a home was a reasonable interpretation of the law.  The … Continue Reading

The Confusing Array of Wage Hour Developments Impacting New York State Employers’ Wage and Hour Compliance

In prior posts, we have summarized the New York State Department of Labor’s most recent rulemaking processes, comprised of two separate wage boards. The first, in 2014, addressed the hospitality industry as a whole, while more recently, in 2015, another highly publicized wage board addressed the subset of that industry deemed “fast food.” Employers should … Continue Reading

Joining Ninth Circuit, Fourth Circuit Rejects Cause of Action to Recover Gratuities Under FLSA When No Tip Credit Taken

In accordance with the Ninth Circuit and several other federal court rulings, the Court of Appeals for the Fourth Circuit yesterday held that an employee cannot bring a claim for wages based on allegedly misappropriated gratuities under the FLSA unless the employer used the tip credit set forth in 29 U.S.C. § 203(m). Trejo v. Ryman … Continue Reading

New York’s Fast Food Wage Board Confirms: $15/Hour

In a televised meeting this afternoon, New York’s recently-convened Fast Food Wage Board confirmed industry employers’ fears and announced its unanimous recommendation that the wage for “fast food employees” in “fast food establishments” be increased to $15/hour by December 31, 2018 in New York City and by July 1, 2021 in the rest of New … Continue Reading

Governor Cuomo Announces Wage Board to Review “Fast-Food Industry” Minimum Wage

In an op/ed piece appearing in yesterday’s New York Times, New York Governor Andrew Cuomo announced he would direct the Commissioner of Labor to convene a new Wage Board “to examine the minimum wage in the fast-food industry” in New York state. The Commissioner’s announcement follows on the heels of a separate op/ed suggesting this … Continue Reading

Pennsylvania Federal Court: Cosmetology Student Not An “Employee” Entitled To Minimum Wage

Last week, a Pennsylvania federal judge held that a former cosmetology school student was not entitled to minimum wage as an “employee” under the Fair Labor Standards Act or the Pennsylvania Wage Payment and Collection Law. Jochim v. Jean Madeline Educ. Ctr. of Cosmetology, Inc., 2015 U.S. Dist. LEXIS 45663 (E.D. Pa. Apr. 8, 2015). … Continue Reading
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