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On November 4, 2019, the U.S. Department of Labor (DOL) announced its notice of proposed rulemaking (NPRM) that would give employers more flexibility in the way they calculate overtime pay for workers with inconsistent schedules that result in workweeks with varying hours of work. This proposal would update the Fair Labor Standards Act’s (FLSA) fluctuating workweek compensation method by allowing employers to include bonus and premium payments when calculating overtime pay. The FLSA permits the…
In response to a lawsuit filed by a number of San Antonio business groups, the San Antonio City Council approved certain revisions to the city’s paid sick leave (PSL) ordinance, including renaming it the Sick and Safe Leave (SSL) ordinance. The SSL ordinance is scheduled to become effective on December 1, 2019. The Lawsuit On July 15, 2019, a coalition of San Antonio business groups filed suit against the City of San Antonio claiming…
As we previously reported this past summer, the New York State Senate and Assembly passed Senate Bill 6549, which amended Section 194 of the New York Labor Law to prohibit wage differentials based on any protected class. As we also reported, the State Senate and Assembly also passed an omnibus bill that overhauled New York’s antidiscrimination laws. Governor Andrew Cuomo signed these bills into law on July 10 and August 12, 2019, respectively. As…
On September 18, 2019, Governor Gavin Newsom signed Assembly bill (AB) 5, which codifies last year’s Supreme Court of California decision establishing a new test to determine whether a worker is an independent contractor or an employee. In addition to codifying the ABC test, AB 5 contains carve-outs for several industries and professions including professional services, doctors, lawyers, real estate, insurance, referral agencies, and others, which will be subject to the multi-factor Borello test…
On September 11, 2019, the California Assembly passed a bill codifying last year’s Supreme Court of California decision establishing a new test to determine whether a worker is an independent contractor or an employee. The new three-factor test, known as the ABC test, determines whether a company “employs” a worker under the wage orders, which address certain requirements for minimum wage, overtime, and meal and rest periods, among others. Assembly Bill (AB) 5 “would state…
In this podcast, Kelly Cardin provides listeners with an overview of workplace investigations from beginning to end, including the types of complaints that can trigger an investigation, best practices for conducting interviews, and how to report your findings to management. She also discusses the potential for retaliation claims and how to minimize this risk.…
In Dorman v. Charles Schwab Corp., No. 18-15281 (August 20, 2019), the Ninth Circuit Court of Appeals recently held that a 401(k) plan participant was required to individually arbitrate his claims regarding the plan’s fees and investment options, pursuant to the plan’s arbitration provision. Factual Background The plaintiff, a former employee of Charles Schwab & Co., Inc., was a participant in Schwab’s defined contribution 401(k) plan, which was amended during his employment to include…
In this episode of the Third Thursdays podcast, Ruthie Goodboe examines two recent circuit court labor cases—one involving protections for striking employees and the other involving protected speech versus unprotected threats during union campaigns—and the practical lessons and tips that employers can take away from these two important holdings.…
On August 6, 2019, in State of Texas v. Equal Employment Opportunity Commission, the U.S. Court of Appeals for the Fifth Circuit ruled that the Equal Employment Opportunity Commission (EEOC) overstepped its limited rulemaking and enforcement power when it issued its 2012 Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII of the Civil Rights Act of 1964. While this ruling and its related injunction are…
On March 1, 2019, New Jersey governor Phil Murphy signed Senate Bill No. 1567 (S1567) into law, making New Jersey the first state to require certain employers to provide pretax transportation fringe benefits to employees. Subject Employers Every employer with at least 20 employees must offer all employees the opportunity to utilize a pretax transportation fringe benefit. When determining whether an employer has at least 20 employees, employees covered by a collective bargaining agreement are…