On November 26, 2019, San Francisco Superior Court Judge Richard B. Ulmer ruled that the Federal Arbitration Act (“FAA”) might not apply to Uber drivers who are engaged in interstate commerce while driving passengers to or from international airports. In his claims before the Division of Labor Standards and Enforcement (“DLSE”), driver Sangam Patel (“Patel”) seeks recovery of unpaid wages, overtime pay, vacation pay, meal and rest break premiums, and unpaid business expenses allegedly owed…

Wage and Hour Defense Blog

Late Compromise Halts Proposed Changes to Pennsylvania’s White-Collar Exemptions

By Nancy Gunzenhauser Popper & Eric Emanuelson

November 26, 2019

On November 21, 2019, the Pennsylvania Department of Labor and Industry (“DLI”) formally withdrew new regulations that would have increased the minimum salary requirements for the Pennsylvania Minimum Wage Act’s (“PMWA”) white-collar exemptions. The withdrawal occurred on the same day the state’s Independent Regulatory Review Commission (“IRRC”) was scheduled to consider the new requirements and rule upon them at a public meeting. The Withdrawn Rule The final rule was issued on October 17, 2019, and…

Wage and Hour Defense Blog

Time Is Running out to Make Important Decisions to Comply with New FLSA “White Collar” Salary Thresholds

By Michael S. Kun

November 21, 2019

As we wrote here in September 27, the new “white collar” salary thresholds under the federal Fair Labor Standards Act (“FLSA”) are set to go into effect on January 1, 2020. That deadline is sneaking up fast. And, like waiting until the last minute to start holiday shopping, waiting until the last minute to make important decisions regarding the new thresholds may not be wise. The New Salary Thresholds Effective January 1, 2020, the…

Wage and Hour Defense Blog

California Trucking Association Mounts Challenge to “ABC” Test

By Kevin R. Vozzo

November 20, 2019

As businesses throughout the State of California continue to grapple with the potential implications of AB5, a new law designed to make it more difficult for companies to treat workers as independent contractors, the California Trucking Association (“CTA”) is taking legal action. As we previously wrote here, AB5 codified and expanded the “ABC test” adopted by the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court for determining whether workers in California…

Wage and Hour Defense Blog

Time Is Money: A Quick Wage-Hour Tip on … State Salary Thresholds for Certain Exempt Employees

By Nancy Gunzenhauser Popper

November 18, 2019

After a false start three years ago, the federal Department of Labor (“DOL”) will finally be rolling out an increased minimum salary threshold for employees qualifying under the “white collar” exemptions. The increase in the salary threshold for professional, administrative, and executive exemptions (making up the “white collar” exemptions) under the Federal Fair Labor Standards Act (“FLSA”) will become effective on January 1, 2020. In order to qualify for one of these exemptions, there are…

Wage and Hour Defense Blog

California Court Rules That Mandatory Service Charges May Be Gratuities

By Jeffrey H. Ruzal & Carly Baratt

November 12, 2019

Upsetting what many considered settled precedent, a California Court of Appeal has held that a mandatory service charge may qualify as a “gratuity” under California Labor Code Section 351 that must be distributed to the non-managerial employee(s) who provided the service. In O’Grady v. Merchant Exchange Productions, Inc., No. A148513, plaintiff, a banquet server and bartender, filed a putative class action against their employer for its failure to distribute the entirety of the proceeds…

Wage and Hour Defense Blog

California Ballot Initiative Would Remove Ride-Share and Delivery Drivers from the “ABC” Test

By Kevin R. Vozzo

November 8, 2019

As we wrote here recently, California’s Governor Gavin Newsom signed a bill known as AB5, which is designed to make it more difficult for companies to treat workers as independent contractors. The new law, which goes into effect on January 1, 2020, codified and expands the “ABC” test adopted by the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court for determining whether workers in California should be classified as employees or…

Wage and Hour Defense Blog

WHD Releases Text of Proposed Revisions to the Fluctuating Workweek Regulations

By Jeffrey H. Ruzal & Carly Baratt

November 7, 2019

On August 26, 2019, we wrote of the plan by the U.S. Department of Labor’s Wage and Hour Division (“WHD”) to update the Fair Labor Standard Act (“FLSA”) regulations on calculating overtime pay for salaried non-exempt workers to allow employers to include additional forms of compensation in the so-called “fluctuating workweek” calculations. Under a fluctuating workweek calculation, an employer divides all of an employee’s relevant compensation for a given workweek by the total number…

Wage and Hour Defense Blog

Time Is Money: A Quick Wage-Hour Tip on … Final Payment of Wages to Terminated Employees in California

By Kristin M. Halsing

October 29, 2019

California law has specific requirements regarding the payment of final wages to terminated employees. The failure to comply with those requirements can require an employer to pay an individual up to 30 days of pay – known as “waiting time” penalties. As “waiting time” claims are often pursued in the context of class actions, where plaintiffs seek up to 30 days of pay for each former employee, it is critical that employers understand when final…

Wage and Hour Defense Blog

California Court of Appeal Rejects Employee’s Attempt to Seek Derivative Wage Statement and Waiting Time Penalties Based on Alleged Meal and Rest Period Violations

By Kevin Sullivan

October 14, 2019

In bringing meal and rest period claims on behalf of their clients, the plaintiffs’ bar has long argued that merely because there was an alleged meal or rest period violation, there were also “derivative” statutory violations entitling their clients to additional penalties. By arguing that an employer is also on the hook for such penalties, plaintiffs’ attorneys argue that the potential exposure is greater. And with greater potential exposure, employers will be more inclined to…

Wage and Hour Defense Blog

Insight and Commentary on Wage and Hour Law Developments Affecting Employers

Blog Authors

Court to Consider Whether California Ride Share Drivers Who Make Airport Runs Are Exempt from the Federal Arbitration Act

Late Compromise Halts Proposed Changes to Pennsylvania’s White-Collar Exemptions

Time Is Running out to Make Important Decisions to Comply with New FLSA “White Collar” Salary Thresholds

California Trucking Association Mounts Challenge to “ABC” Test

Time Is Money: A Quick Wage-Hour Tip on … State Salary Thresholds for Certain Exempt Employees

California Court Rules That Mandatory Service Charges May Be Gratuities

California Ballot Initiative Would Remove Ride-Share and Delivery Drivers from the “ABC” Test

WHD Releases Text of Proposed Revisions to the Fluctuating Workweek Regulations

Time Is Money: A Quick Wage-Hour Tip on … Final Payment of Wages to Terminated Employees in California

California Court of Appeal Rejects Employee’s Attempt to Seek Derivative Wage Statement and Waiting Time Penalties Based on Alleged Meal and Rest Period Violations

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