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Showing 45 posts in Wage and Hour.

Significant Win for Franchisors as McDonald's Dodges Franchisee Wage and Hour Claims

In a major victory for franchisors, a panel of the Ninth Circuit recently held that McDonald's Corporation cannot be liable as a joint employer for the wage and hour violations of its franchisees. Importantly, the court held that McDonald's involvement with its franchises and franchise workers is focused on maintaining brand standards and "does not represent control over wages, hours or working conditions." However, uncertainty remains over the liability of franchisors that impose more than just branding and marketing standards on its franchisees. More ›

Overtime Rules Update: DOL Adjusts Minimum Salary Requirement for Salaried Employees

The United States Department of Labor (DOL) made official a new regulation increasing the minimum salary level that salaried employees must be paid to be exempt from overtime. As of January 1, 2020, if a salaried employee makes less than $684 per week—or $35,568 per year—the employee will be entitled to overtime for the hours worked beyond 40 hours in a week. More ›

DOL Proposes Tweaks to FLSA Regular Rate Regulations, Changes Won't Impose New Regulatory Requirements

The Wage and Hour Division of the U.S. Department of Labor (DOL) has announced proposed changes to the regular rate regulations of the Fair Labor Standards Act (FLSA). According to the DOL, the proposed changes are focused on updating and clarifying the regular rate regulations, and intended to encourage employers to provide additional benefits to workers without inviting litigation. More ›

Employee Participation in an Employer-Sponsored Volunteer Program is Not Compensable, DOL Says

The Department of Labor (DOL), Wage and Hour Division, recently issued its first set of opinion letters for 2019. One of the letters, FLSA2019-02, addresses whether employee time spent participating in an employer's optional volunteer program is compensable work time under the Fair Labor Standards Act (FLSA). As many employers today offer optional volunteer programs to their employees, this opinion letter is helpful for employers to determine whether employee time spent volunteering with such a program is compensable. More ›

The End of the Saga of DOL's Proposed Changes to FLSA Overtime Rules?

For nearly four years, proposed Department of Labor (DOL) rule changes that would expand the number of workers eligible for overtime wages have remained in limbo. The latest twist in this long-standing saga came last week, when the DOL published a new "Notice of Proposed Rule Making" (NPRM), which sets a new salary threshold for overtime pay at $679 per week ($35,308 per year). Under these proposed rules, any salaried employee earning less than that amount, will be entitled to overtime for the hours the employee works beyond forty (40) in a week. More ›

California Appeals Court Confirms Constitutionality of Piece-Rate Compensation Statute

In Nisei Farmers League vs. California Labor and Workforce Development Agency, California’s Fifth Appellate District confirmed the constitutional validity of Labor Code section 226.2, a recently enacted law providing that employees paid on a piece-rate basis must be paid at least minimum wage, and must be paid for rest and recovery periods and “other nonproductive time” separate from any piece-rate compensation. Under a piece-rate system, employees are not paid by the hour, but rather based on activities, task or units of production completed. For example, employees are paid by the number of widgets they produce. The goal of the statute was to make sure employers who pay under a piece-rate system also comply with all minimum wage law requirements that apply to hourly workers. More ›

Department of Labor Removes 80-20 Tipped Work Rule

The federal Department of Labor’s Wage and Hour Division (WHD) provided updated guidance on its application of the “tip credit” rule for tipped employees who perform non-tip-generating tasks. More ›

State Common Law Claims May Be Preempted By The Fair Labor Standards Act

A District Court Judge in the Eastern District of Pennsylvania recently ruled that the Fair Labor Standards Act (“FLSA”) preempted a plaintiff’s attempt to add state common law counts for breach of contract and unjust enrichment onto his statutory wage and hour claims. Formica v. US Environmental, Inc., (No. 18-459; July 11, 2018).  The plaintiff alleged FLSA, Pennsylvania Minimum Wage Act, and Pennsylvania Wage Payment and Collection Law claims.  More ›

Clarifying the SCOTUS American Pipe Decision: Pending Motion for Class Certification does not toll Limitations Period

The United States Supreme Court recently handed the defense bar a useful tool in stemming the tide of class action lawsuits. In the area of employment law, claims for violations of federal wage and hour laws, violations of state and local regulations governing employees, and systemic workplace discrimination are prone to class action claims. More ›

Multiple Minimum Wage Increases to Take Effect on July 1, 2018

On July 1, 2018, multiple state and local authorities will increase the hourly minimum wage rate ever closer to the $15.00 per hour wage demanded by the Fight for $15 advocates. The following lists of minimum wage increases are not exhaustive and may not reflect increases within a certain working sector (for example, increase in minimum wages for tipped workers or hotel workers).Therefore, we encourage you to contact legal counsel for up-to-date information regarding your city, county or state. More ›

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