Because most FLSA exemptions are affirmative defenses, their applicability is not often established by the Plaintiff’s Complaint, of which s/he is “master” and can shape to avoid addressing exemption-triggering duties. There are exceptions. In a recent opinion, a Manhattan federal district judge ruled that a commissioned salesman who traveled from his home office to
new york labor law
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…
New York Federal Court Finds Business Properly Classified Translators As Independent Contractors
This month, two New York federal judges reviewing a claim of misclassification rejected a claim for overtime compensation, agreeing that a business properly classified two translators as independent contractors rather than as “employees” under the Fair Labor Standards Act and the New York Labor Law. See Mateo v. Universal Language Corp., 2015 U.S. Dist.…
Manhattan Federal Court: Financial Firm Retained Discretion to Award or Not Award Bonus
As we recently noted in our discussion of Massachusetts law, incentive compensation has the potential to become “wages” protected by state labor law once it is “earned.” However, when an employer conveys to the employee that it retains discretion to award or not award incentive compensation in any specific amount, such potential incentive compensation…
District Court Affirms: Business Not Obligated to Pay $350,000 Performance Bonus to Employee Who Never Worked a Day
The importance of detailed drafting of employment documents – particularly those calling for commissions, bonuses or other types of incentive compensation – was highlighted recently by a plaintiff’s claim that, as a conditional hire who never worked a day at now-defunct Lehman Brothers, the Bank’s rescinding of her employment offer triggered its obligation to pay…
U.S. Open Tennis Umpires Properly Classified As Independent Contractors
Service providers vendors (and those vendors’ employees) are free to assert claims that they “employees” of the entity for which they are providing services under the FLSA under independent contractor misclassification and joint employer theories. Service providers continue to do so despite limited success, the most recent example being Judge Andrew Carter’s (SDNY) summary…
Brooklyn Federal Court Judge Reiterates And Expands on Prior Opinion Regarding Plaintiff’s Attorneys’ Fees
As the volume of FLSA litigation remains high, an impediment to resolving such cases (even where the underlying claimant’s wage claim already has been resolved) is the issue of the appropriate fee to be paid to counsel representing the worker pursuant to the fee shifting provision of the FLSA and/or applicable state labor law. …
New York State Appellate Court Reinforces Employers’ Right To Define Terms of Vacation Policy
It is well-established under both New York court decisions and Department of Labor guidance that “a former employee is entitled to be paid for vacation pursuant to the ‘contract between the parties.’” See Matter of Glenville Gauge Co. v. Industrial Bd of Appeals of State of NY, 70 AD2d 283 (1979). A recent decision,…
New York Legislature’s Second “Fair Play Act” Enacted to Cover Commercial Goods Transportation Industry
On the heels of similar legislation passed in 2010 for the construction industry, and consistent with the state’s continuing focus on alleged misclassification of service providers as independent contractors, the New York state legislature recently passed the Transportation Industry Fair Play Act, N.Y. Labor Law § 862 et seq. This legislation creates a…
Second Circuit To Issue Important Guidance On Legal Standards Applicable To Unpaid Interns
Recognizing the need to provide clarity to the business community in light of voluminous litigation, the United States Court of Appeals for the Second Circuit recently agreed to hear appeals in the Fox and Hearst intern cases. Glatt v. Fox Searchlight Pictures Inc., Case Number 13-2467, 11/26/13. The Court will examine the different…