The U.S. House of Representatives yesterday voted 246 to 177, largely along party lines, in favor of legislation which would delay the rule’s effective date by six months, from December 1, 2016, to June 1, 2017. Prior to the anticipated late night vote on the bill in the House, Senator James Lankford (R-Okla.) introduced the legislation … Continue Reading
Following a pair of lawsuits aimed at blocking the Labor Department’s “white collar” overtime rule, House Subcommittee on Workforce Protections Chair Tim Walberg (R-Michigan) introduced legislation which would delay the rule’s effective date by six months, from December 1, 2016, to June 1, 2017. The proposed legislation, entitled The Regulatory Relief for Small Businesses, Schools, and … Continue Reading
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
While FLSA coverage—both so-called “enterprise” based coverage and individual coverage of a specific worker—remains broad, such coverage generally does not extend to individuals who do not work for a covered enterprise and do not “directly participate in the actual movement of persons or things in interstate commerce.” In reviewing a trial court decision, the Court … Continue Reading
The determination of whether an entity is covered by the Railway Labor Act impacts compensation strategy and potential liability as the FLSA exempts from its overtime requirement individuals employed by such air carriers. The coverage determination is made by the National Mediation Board (NMB), which recently issued new opinion re-confirming the applicability of the Railway … Continue Reading
In a case addressing coverage under the FLSA, Federal Judge Ramona V. Manglona from the District of the Northern Mariana Islands held coverage was not triggered merely because a cook in Saipan accessed the Internet to obtain recipes. Dean v. Pac. Bellwether, LLC, 2014 U.S. Dist. LEXIS 15797 (D. N. Mar. I. Feb. 6, 2014). … Continue Reading
Courts continue to wrestle with claims brought by individuals treated by businesses as outside the scope of the FLSA’s minimum wage and overtime requirements. Many of these claims are asserted by individuals classified as volunteers and of course interns, all claiming to be employees entitled to the protections of the FLSA. In one such case, … Continue Reading
In a case involving an uncommon number of legal twists and turns, the State of Vermont has convinced a federal Judge to uphold its sovereign immunity from suit under the FLSA. Coniff v. Vermont, 2013 U.S. Dist. LEXIS 143494 (D. Vt. Sept. 30, 2013). Generally speaking, states are immune from claims brought by private individuals in … Continue Reading
As we recently discussed, there are exceptions to the FLSA’s broad coverage provisions. One such FLSA exception pertains to organizations—often not-for-profits—which are not “enterprises”, defined as a person or persons performing related activities “for a common business purpose.” A recent decision from the United States District Court for the District of Columbia is instructive as the court … Continue Reading
While the FLSA’s coverage is broad, it does not extend to all employment scenarios. In a new decision addressing the common employment scenario where a building owner employs a single worker to serve as a janitor and handle miscellaneous tasks, Magistrate Judge Ramon E. Reyes of the Eastern District of New York ruled that such a … Continue Reading
Presumably buoyed by the district court ruling in Glatt v. Fox Searchlight Pictures Inc., 2013 U.S. Dist. LEXIS 82079 (S.D.N.Y. June 11, 2013), a number of copy-cat lawsuits have been filed by former entertainment industry interns in recent weeks in the Southern District of New York’s Manhattan courthouse seeking unpaid wages. Salaam, et al. v. Bad … Continue Reading
In two decisions issued this spring, the Supreme Judicial Court of Massachusetts, reversed decisions issued by Massachusetts lower courts and broadly interpreted the scope of Massachusetts wage law with respect to its extra-territorial reach and potential individual liability for violations. Taylor v. Eastern Connection Operating, Inc., 465 Mass. 191 (Mass. 2013); Cook v. Patient Edu, LLC, … Continue Reading
A new decision from the U.S. Court of Appeals for the Eighth Circuit is consistent with the rulings of several lower courts in holding that an individual employed in violation of the Immigration Reform and Control Act (IRCA) because he or she is not authorized to work in the United States is still entitled to … Continue Reading
In a lengthy analysis of the “economic realities” test as applied to cable installers, the Court of Appeals for the Eleventh Circuit reversed Judge Elizabeth A. Kovachevich of the Middle District of Florida’s 2012 decision finding cable installers to be properly classified as independent contractors. Scantland, et al. v. Jeffry Knight, Inc., et al., 11th Cir. … Continue Reading
Reviewing a district court decision issued two years ago, the United States Court of Appeals for the Second Circuit has affirmed a ruling finding John Catsimatidis, the CEO and owner of New York-area grocery chain Gristede’s (and a New York Mayoral Candidate), individually liable for wages under the FLSA based on the “economic realities” of … Continue Reading
Even as the New Jersey legislature contemplates amendments to the law (similar to those enacted in New York) limiting the classification of certain truck drivers as independent contractors, a New Jersey federal judge has granted an industry employer’s motion to dismiss claims that its drivers were misclassified as independent contractors. Luxama v. Ironbound Express, Inc., … Continue Reading
In a short order following oral argument, Judge Juan R. Sanchez of the Eastern District of Pennsylvania denied an FLSA defendant’s motion for summary judgment seeking a ruling that it properly classified its delivery couriers as independent contractors under the FLSA. Spellman, et al. v. American Eagle Express, Inc., E.D. Pa., No. 10-cv-1764. In so ruling without … Continue Reading
In the wake of the first substantive decisions issued as part of the growing trend of wage-and-hour claims being initiated by interns recently seeking alleged unpaid minimum wages and overtime, several more high profile filings have become public over the last few weeks, including most recently a claim against popular internet media conglomerate Gawker. Mark, et … Continue Reading
In 2003, the United States Court of Appeals for the Second Circuit (which encompasses New York) ruled that workers on projects covered by the federal Davis Bacon Act could not assert contract claims as alleged “third party beneficiaries” of Davis Bacon construction contracts, as permitting such claims would undermine Congress’ intent in electing not to … Continue Reading
FLSA plaintiffs from time to time seek to include potential “deep pocket” defendants as alleged “joint employers,” claiming that the alleged joint employer’s control over the entity which employed them was sufficient such that FLSA liability should attach. Recently, another federal court joined the growing body of decisions rejecting such claims. Diaz v. U.S. Century Bank, 2013 … Continue Reading
In a significant victory for employers in the series of hotly contested cases regarding the status of interns, the Hearst Corporation successfully defeated class certification under the New York Labor Law. Xuedan Wang v. Hearst Corp., 2013 U.S. Dist. LEXIS 65869 (S.D.N.Y. May 8, 2013). As important to wage/hour practitioners and employers as the Court’s ruling … Continue Reading
Dedicated wage-and-hour practitioners, like many attorneys, will often find wage-and-hour issues to analyze in everyday life. Take, for example, this recent article regarding former Fenway Park fixture and local legend the “Crunch ‘n Munch” guy. The article, in addition to providing the back story behind his meteoric rise to local sports stardom (and drastically increased compensation), mentions … Continue Reading
When small and medium-sized businesses are sued under the Fair Labor Standards Act, a common litigation issue is whether or not the defendant-employer – or the plaintiff-employee – is covered under the Act, through either its broad “enterprise coverage” or “individual coverage” of the worker’s employment. Where enterprise coverage is not present, typically because the business … Continue Reading
The Eleventh Circuit has found that an individual who is not authorized to work in the United States can recover alleged unpaid wages under the FLSA, rejecting an employer’s argument that Supreme Court’s decision in Quality Inn in Hoffman Plastic Compounds, Inc. v. NLRB, 535 U.S. 137 (2002), bars such claims. In so holding, the … Continue Reading
