On February 22, 2016, the First Circuit issued its decision in Schwann v. Fedex Ground Package System, Inc. This decision clarified the extent to which the Massachusetts Independent Contractor statute, G.L. c. 149 § 148B (“§ 148B”), as applied to motor carriers, is preempted by the Federal Aviation Administration Authorization Act of 1994, 49
preemption
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. …
Eleventh Circuit Rejects Airline Deregulation Act Preemption Challenge To Living Wage Ordinance
Courts continue to wrestle with preemption issues, the tension between sweeping federal laws purporting to regulate an industry or industries and laws enacted at the local level, such as labor laws impacting labor costs. In the most recent example, the Court of Appeals for the Eleventh Circuit rejected a cargo airline’s argument that the Airline…
Minimum Wage Increases – Another Challenge For National Employers and Unintended Consequences For the Public
As with the recent uptick in state and municipal paid leave laws, employers in multiple jurisdictions now find themselves faced with a similar national bandwagon in favor of increased state and municipal minimum wage requirements, highlighted by the Los Angeles City Council’s recent decision to ratify a proposal moving that City’s minimum wage to…
Supreme Court Declines Skycaps’ Appeal of Tip Claim Preemption Ruling
Presumably ending the long-running litigation regarding whether certain Massachusetts skycaps’ common law claims challenging the imposition of a $2 curbside baggage handling fee that allegedly caused a reduction in tips are preempted, the U.S. Supreme Court has declined to hear an appeal of the First Circuit’s 2013 decision finding those claims preempted by the Airline…
Massachusetts Supreme Court Permits Common Law Claims for Alleged Unpaid Wages
Rejecting a legal theory widely accepted in many jurisdictions, namely that statutory wage-and-hour laws are intended to preempt claims for alleged unpaid compensation brought pursuant to older, less-specific common law theories, the Massachusetts Supreme Court ruled last month that an employee whose wage claims may well be time barred under the Massachusetts Wage Act can…
Second Circuit Reaffirms Prior Ruling Regarding Davis Bacon Contract Claims
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…
California Court Finds State Meal and Rest Period Requirements Preempted by Federal Motor Carrier Regulation
While states generally are free to enact wage and hour laws providing greater protections than contained in the Fair Labor Standards Act, sometimes such laws run afoul of federal statutes governing particular industries. In a recent decision exemplifying this type of preemption, a judge in the United States District Court of the Southern District of …
Appeals Court Finds Skycaps Claims For Misappropriated Tips Preempted by Federal Law
As we previously discussed, the airline industry, like the hospitality industry, has been assailed with lawsuits alleging that tips from customers intended for certain employees—in this case, baggage handlers, a/k/a skycaps—have been misappropriated by the employer, in violation of state statutes and common law. In the airline industry, conflicting authority has emerged even within the…
Circuit Court Reiterates That State Wage and Hour Laws Need Not Mirror FLSA
As discussed here, the FLSA contains a provision relating to the compensability of time spent donning and doffing uniforms, when the compensability of such time is addressed in a collective bargaining agreement. 29 U.S.C. § 203(o). However, even where a unionized employer through a collective bargaining agreement is not required to pay for such time, if…