Archives: Minimum Wage

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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

Affirming Dismissal, Seventh Circuit Holds Window Washing Business Is a “Service” Establishment and Its Employees Are Paid on a “Commission” Basis, Bringing Clarity to Application of 7(i) and Sharply Criticizing DOL Regulations and Its Application of 7(i)

In one of the most comprehensive circuit court opinions to address application of Section 207(i) of the FLSA—the provision of the law that allows employers to comply with the overtime provisions of the FLSA by paying commissioned employees of a retail or service establishment at least 1.5 times the minimum wage, instead of their regular … Continue Reading

New York Federal Court Holds Persons Performing Community Service To Avoid Criminal Prosecution Not “Employees” Entitled to Minimum Wage Under The FLSA

The Court of Appeals for the Second Circuit recently revisited the Department of Labor’s four-part test for purposes of determining whether a person qualifies as a “public service volunteer.”  In a new decision applying the Second Circuit’s fact-intensive standard, Southern District of New York Judge Jesse M. Furman ruled in favor of the City of … Continue Reading

NY Acting Commissioner of Labor Issues Wage Board Order Reducing New York Tip Credit to $1.50

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

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

Sixth Circuit: Employee Did Not Have to be “Double Paid” Based On Layoff Plan Election

The term “severance pay,” is often used loosely, sometimes mixing together potential obligations under the law with those under employer policies, collective bargaining agreements or benefits plans.  In many states, such as New York, there is no obligation to give severance as a matter of state labor law.  See generally Glenville Gage Co. v. Industrial … Continue Reading

Brooklyn Federal Court Finds Local Establishment Not Covered by FLSA

The high volume of FLSA litigation, particularly in jurisdictions such as New York and Florida, has in recent years forced many small businesses truly outside the scope of FLSA coverage to defend lawsuits brought pursuant to its minimum wage and overtime provisions.  Typically, these smaller employers attempt to address the issue of coverage early in … Continue Reading

Remaining In Minimum Wage Vanguard, Seattle Announces Minimum Wage Increase To $15.00/Hour

We recently reported on the decision of SeaTac, a Washington municipality and site of Sea-Tac Airport, to raise its minimum wage to $15/hour, the subject of subsequent, ongoing litigation.  Now, the City of Seattle itself has, through its City Council, passed similar legislation seeking to raise the City’s minimum wage ultimately to the same $15.00/hour … Continue Reading

President Obama Continues Push To Increase Federal Minimum Wage, Turns Attention to Tipped Wage

Despite encountering strong opposition to its proposals to raise the federal minimum wage and rewrite the Department of Labor regulations defining the exemptions from overtime under the FLSA, the White House is now requesting Congress raise the minimum wage for “tipped” employees.  Through a report released last week, the President argues that the minimum wage … Continue Reading

Florida Court Requires Pre-Suit Notice For Claims Under Florida Minimum Wage Act

Florida has maintained a separate minimum wage requirement since the 2005 passage of the Florida Minimum Wage Act (“Act”), which was authorized by the Minimum Wage Amendment (“Amendment”) to Article X of the Florida Constitution.  Since then, courts have disagreed as to whether the Amendment provides the right to a separate cause of action to … Continue Reading
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