On the heels of the closure of the notice and comment period, during which the public and business community were invited to comment on the New York Department of Labor’s proposed regulations interpreting recently amended New York Labor Law 193 (governing permissible deductions from employee wages), the regulations have been finalized with an effective
deductions
Minnesota High Court Rules: Tips Are Wages
As discussed in greater detail here, the Minnesota Supreme Court has ruled that gratuities received by night club employees were “wages” within the meaning of Minnesota’s law prohibiting deductions, and thus an employer violated that law when it required employees to pay for “register shortages . . . walkouts . . . [and] unsigned…
NY Dept. of Labor Issues Proposed Regulations Concerning Wage Deductions
The New York Department of Labor has issued proposed regulations interpreting revised New York Labor Law § 193, concerning permissible deductions from wages. The proposed regulations are available here, and are scheduled to be published in the May 22, 2013 issue of the State Register, with public comments regarding their content accepted until…
New York Legislature Amends Deduction Statute, Providing Greater Flexibility
The New York state legislature has passed the proposed amendment to N.Y. Labor Law § 193, broadening the scope of permissible deductions from wages under New York law to include, among other items, recoupment of overpayments based on clerical errors. The amended statute will also permit deductions to pay for certain common employer-provided benefits, such…
Governor Cuomo Introduces Bill Amending New York’s Wage Deduction Statute § 193
As the New York legislative session draws to a close, a flurry of bills have been presented for consideration in both the Senate and Assembly, both inside and outside the employment law arena. Included among those is a bill, supported by this memorandum from the Governor’s office, which would amend New York Labor Law §…
The Price of Foregoing Written Commission Agreements
As recently discussed here¸ a properly drafted commission agreement is essential in New York (and every state) to minimize exposure to a variety of claims, including claims for alleged unpaid commissions and improper wage deductions. In fact, in New York and other states, a written signed commission agreement is required pursuant to state law…
Time to Eat? Health Care Employers Should Make Sure There Is
Over the past year or so, employers in the health care industry, particularly in the Northeast, have been – and continue to be – targeted in a number of lawsuits alleging improper payment of hours worked by their hourly employees. Specifically, these lawsuits allege that certain health care facilities automatically deducted time for meal breaks, even when an employee worked through the meal period. Several of the lawsuits also include claims for unpaid pre- and post-shift work, as well as unpaid training time. The lawsuits seek back wages, interest, attorneys’ fees, and liquidated (double) damages.
Under the federal Fair Labor Standards Act (FLSA), most employees must be paid at least the minimum wage (currently $7.25 per hour) for all hours worked and must be paid one-and-one-half times the “regular rate of pay” for all hours worked in excess of 40 hours in a workweek. Under the FLSA, bona fide meal periods do not count as “hours worked.” Ordinarily, 30 minutes or more is long enough for a bona fide meal period, although meal periods of less than 30 minutes in which the employee is completely relieved from duty for the purpose of eating may be bona fide under certain conditions. Factors to be considered in determining whether a meal period is bona fide include, among others, whether the employees have sufficient time to eat a regular meal, whether there are work-related interruptions to the meal period, and whether the employees have agreed to the shorter period. Meal periods of less than 20 minutes should be especially scrutinized to ensure that the time is sufficient to eat a regular meal under the circumstances.
Many employers automatically deduct a 30-minute lunch period from an employee’s total daily time worked. Typically, such deductions are made unless the employee notifies the employer that he or she did not take a 30-minute lunch period that day. This practice generally is permissible under the FLSA, provided that the employer accurately records actual hours worked, including any work performed during the lunch period (and accurately compensates the employee for the actual hours worked).Continue Reading Time to Eat? Health Care Employers Should Make Sure There Is