U.S. Department of Labor Issues COVID-19 Guidance on FLSA and FMLA
3/20/20
By: Catherine Scott As the federal government continues to grapple with questions from employers regarding COVID-19, the federal agencies have begun to roll out new guidance. The latest comes from the U.S. Department of Labor (DOL), which has issued guidance for employers seeking answers concerning their obligations pursuant to the Fair Labor Standards Act (FLSA)…
Securing the Bag: California Supreme Court Rules Exit Searches Compensable
3/2/20
By: Gregory Blueford Shunning the position of the United State Supreme Court’s decision in Busk v. Integrity Staffing Solutions, Inc., the California Supreme Court has ruled that time spent on the employer’s premises waiting for and undergoing company-mandated exit searches of bags and personal technology devices brought to work purely for personal convenience by employees…
PA Supreme Court Elevates State Pay Standards Above the FLSA on Fluctuating Work Week
2/12/20
By: Justin Boron Going forward, Pennsylvania employers should be wary of relying on federal rules for their pay policies. As a general principle, courts and regulators interpret Pennsylvania’s wage and hour laws consistently with the Fair Labor Standards Act. But the Pennsylvania Supreme Court called this principle into question when it held that the fluctuating…
DOL Releases New Overtime Rule And Increases Minimum Salary To $35,568
9/30/19
By: Brad Adler On Tuesday, September 24, 2019, the U.S. Department of Labor released its long-awaited new minimum salary threshold for the Fair Labor Standards Act’s white collar exemptions (i.e., executive, administrative and professional exemptions). Under the new rule, which is set to take effect on January 1, 2020, the DOL has set the minimum…
10/22/18
By: Brad Adler & Hillary Freesmeier While retail employers have tightened up their wage and hour practices, there are still too many companies in the retail industry, including fast food and fast casual employers, that have failed to take inventory of their compliance with current wage and hour laws. One such example is how some…
Is Wellness Activity Participation Compensable?
9/25/18
By: Joyce Mocek The Department of Labor (DOL) recently issued an opinion letter on whether employees must be compensated under the Fair Labor Standards Act (FLSA) for the time they spend participating in wellness activities. In this inquiry, the employer advised the DOL that it allowed its employees to participate in wellness programs including “biometric…
9/19/18
By: John McAvoy On July 6, 2018, a nonprofit restaurant advocacy group filed suit against the U.S. Department of Labor in Texas Federal Court challenging the rule that governs the compensation of tipped employees; specifically, the DOL’s “80/20 Tip Credit Rule” or “20% Rule” set forth in the 2012 revision to the DOL’s Field Operations Handbook. Restaurant Law Center v. U.S. Dept. of…
Arbitration Agreement Litigation Wins Continue to Fall Like Dominoes for Pizza Hut
6/26/18
By: Tim Holdsworth Following the Supreme Court’s opinion in Epic Systems that class and collective actions waivers in arbitration agreements are enforceable, a federal court recently granted a motion to compel arbitration to one of the nation’s largest Pizza Hut franchisees in a lawsuit in Illinois. In Collins et al. v. NPC International Inc., case number 3:17-cv-00312,…
Coffee, Water, Less Than 20 Minutes
6/19/18
SCOTUS KICKS THE CAN ON SHORT BREAKS COMPENSATION By: John McAvoy On June 11, 2018, the U.S. Supreme Court refused to entertain the appeal of a Pennsylvania employer that could have resolved the emerging split of authority between the federal appellate courts and the U.S. Department of Labor (DOL) as to the compensability of employees’…
PA Fed. Ct. Finds UberBLACK Limousine Drivers Maintain Independent Contractor Status
4/30/18
By: John P. McAvoy On April 12, 2018, Uber Technologies, Inc. won its legal battle on the recurring issue of independent contractor misclassification when the Eastern District of Pennsylvania granted the company’s motion for summary judgment in Razak v. Uber Technologies, Inc., No. 16-cv-573 (E.D. Pa. Apr. 11, 2018) (Baylson, J.). In so holding, the…
Bonus or No Bonus? California Supreme Court Clarifies Calculation of Overtime
4/16/18
By: Christine C. Lee Calculating the correct overtime pay rate for non-exempt employees just got a little more complicated for California employers who elect to pay bonuses. In the recent case of Alvarado v. Dart Container Corporation of California, plaintiff Hector Alvarado, a non-exempt warehouse worker, was paid a flat “attendance bonus” of $15 per…
Service Advisors Once Again Exempt From Overtime
4/3/18
By: Brad Adler & Michael Hill After years of back and forth in the lowers courts, the Supreme Court has ruled that service advisors at auto dealerships are exempt employees under the Fair Labor Standards Act (“FLSA”). It’s the rare case that goes to the Supreme Court twice. But after taking the scenic route through…