Whether a function of recent legislation or a rule tying the minimum wage to inflation, the minimum wage will increase in more than a dozen states in the new year, as it did last year. These changes impact workers at or near the minimum wage (including, in many cases, tipped workers), and also
Minimum Wage
Nevada Supreme Court: Exotic Dancers Are Employees Under State’s Law
In a setback for that state’s thriving adult entertainment business, the Nevada Supreme Court yesterday ruled that Sapphire Gentleman’s Club improperly classified its 6000+ semi-nude performers as independent contractors rather than employees under Nevada’s minimum wage law. Terry et al. v. Sapphire Gentlemen’s Club et al., case number 59214, 10/30/14.
The Nevada court, citing…
Minnesota Restaurant Joins Tip Credit Debate with “Minimum Wage Fee”
As the debate over the minimum wage and the role tip income should play in satisfying the minimum wage obligation for tipped employees continues on the federal and state level, a restaurant in Minnesota recently joined the fray. Rather than raise prices gradually in response to the recent increase to the Minnesota state minimum wage,…
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 …
Interpreting Oracle, California Court Limits Application Of State Wage Laws Vis a Vis Out of State Employees
The California Supreme Court’s 2012 decision in Sullivan v. Oracle signaled, but did not conclusively rule, that no circumstances could support a California Labor Code claim by an employee working outside the State of California. However, a new California federal court decision emphatically holds that the application of California’s Labor Code should end at the…
Second Circuit Upholds Volunteer Finding Vis a Vis Former Student Turned School Aid
In December 2012, we discussed a lower court’s ruling that a young man who volunteered his time at his old high school working with at risk youths was not an “employee” within the meaning of the Fair Labor Standards Act entitled to minimum wage protection. On appeal, the Court of Appeals for the Second…
DOL Announces Proposed Rule Effectuating Increase To Contractor Minimum Wage
As discussed in greater detail on the Jackson Lewis website here, this week the Department of Labor published its Proposed Rule implementing the minimum wage increase for federal contractors ordered by the President through Executive Order earlier this year. Under the EO, the minimum wage for work covered by the Davis-Bacon Act or…
Eighth Circuit Affirms Mandatory Continuing Education Training Is Not Compensable
As the employer community continues to defend the new series of claims challenging the longstanding practice of utilizing unpaid interns, FLSA Plaintiffs and their counsel continue to seek additional avenues to expand the scope of compensable work under the FLSA. In a new decision rejecting just such an attempt, the Court of Appeals for the…
MLB All-Star Weekend Volunteers Not Employees Under FLSA
Judge John G. Koeltl from the Southern District of New York has dismissed the minimum wage claims of an individual who served as a volunteer at last year’s Major League Baseball All Star Weekend FanFest, held at New York City’s Javits Center, based on the “amusement or recreational establishment” exemption. Chen v. Major League …
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…