Dykema Labor & Employment Law Blog

The U.S. Department of Labor on Monday unveiled its first guidance under the current Administration on the hotly contested issue of employee-versus-independent contractor classification, saying workers for an unnamed technology platform that connects service providers with clients are independent contractors. The guidance was provided through an Administrator’s Opinion Letter, and as such it provides unique defenses to employers with similar situations and who rely on the letter. The company referenced in the letter is…
This past summer, two voter initiatives were headed to the November ballot for consideration. One initiative was to increase the state minimum wage, and the other was to create a state law requiring most employers to provide employees with paid sick leave. However, before such initiatives could appear on the ballot for voter consideration, in September 2018 the Michigan Legislature seized its constitutional right to enact those initiatives on its own, thereby keeping the initiatives…
The U.S. Department of Labor is pressing ahead with its efforts to revamp the Fair Labor Standards Act regulations (we recently posted here regarding proposed changes to the Regular Rate of pay calculation regulations). On April 1, 2019, the DOL proposed a new four-factor test that would clarify when two employers are jointly responsible for minimum wage and overtime violations. Under this test, the DOL would consider whether the potential joint employer: Read More › Tags:…
Under the Fair Labor Standards Act, all employees must be paid overtime for all hours worked over 40 in a workweek. The law also requires employers to keep accurate records of all time worked. Many employers, though—particularly hospitals—often automatically deduct 30 minutes from their employees’ 8.5 workdays assuming that all employees take their regular 30 minute meal breaks. But what happens when an employee is interrupted during the employee’s meal break to answer a call,…
Earlier this month, the DOL published a Notice of Proposed Rulemaking (“NPRM”) to increase the minimum salary level most exempt employees must be paid in order for them to be deemed exempt from the FLSA’s overtime pay requirements. For a summary of that proposal, click here. The comment period for the proposed changes will close in late May, and it is anticipated that the salary level rules will be finalized and implemented in early…
Following shifting executive policies, court decisions, and guidance on the EEO-1 Pay Date reporting requirement, the EEOC has now confirmed that the May 31, 2019 deadline to report pay data is officially on hold (for now). By way of background, in 2016, under the Obama administration, the EEOC expanded its annual mandatory “Employer Information Report EEO-1” (EEO-1) form to require employers and federal contractors with 100 or more employees to include pay data, categorized by…
The new Michigan Paid Medical Leave Act soon becomes effective—on March 29, 2019. By then, employers employing 50 or more employees must have policies in place allowing employees to use up to 40 hours of paid time for various specified reasons. See our prior eAlert on the topic for details. In addition to making sure policies are compliant, by March 29th covered employers must also post a poster summarizing the Act’s provisions in “conspicuous places,”…
New Proposals and What Lies Ahead The result: the Department is now proposing to… Increase the salary level requirement from its current $455 per week ($23,660 per year) to $679 per week ($35,308 per year); Allow 10 percent of the required threshold to include non-discretionary bonuses and commissions (i.e., $3,531 per year) which are paid at least annually, and allow a final “catch-up” payment to be made, if necessary, to make up for shortfalls to…
The amendments require that ordinary business expense reimbursements are no longer voluntary—which means that, because the IWPCA already provides for a private cause of action, including attorney’s fees and  liquidated damages of 2 percent per month of any unreimbursed amounts, the potential exposure for litigation increases dramatically. Even for relatively small amounts of unpaid expenses, the incentive for employees to file individual and class actions under the IWPCA is significant considering the penalties and attorney’s…
On December 4, 2018, the Michigan Legislature pared back the minimum wage and paid sick leave laws it passed last September in an effort to preclude those issues from being on the November ballot. Had the Legislature not adopted the language of the ballot initiatives legislation, the measures would have been on the November ballot and it would have needed a vote of three-fourths of each house to amend the law if adopted by the…