Wage & Hour Developments

A ONE-STOP RESOURCE FOR ANALYSIS ON ISSUES RELATING TO WAGE-AND-HOUR DEVELOPMENTS AFFECTING EMPLOYERS

On July 15, 2021, the California Supreme Court decided Jessica Ferra v. Loews Hollywood Hotel, LLC, S259172 (Cal. S.Ct. July 15, 2021). The question before the Court was “whether the Legislature intended ‘regular rate of compensation’ under section 226.7(c) to have the same meaning as ‘regular rate of pay’ under section 510(a), such that the calculation of premium pay for a noncompliant meal, rest, or recovery period, like the calculation of overtime pay, must account…
Paid Family and Medical Leave (PFML) insurance programs provide benefits to eligible employees who need time off work to care for themselves or their family members. The programs enacted to date are typically funded through premiums paid by employers and/or employees via deductions based upon wages or payroll taxes, although the funding mechanism varies from state to state. These contributions are paid as premiums to state agencies responsible for administering the programs. The programs generally…
In October 2019, Ralph “Trey” Johnson filed a putative class action lawsuit in the United States District Court for the Eastern District of Pennsylvania against the National Collegiate Athletic Association (NCAA) and a number of universities alleging that college student-athletes are employees who are entitled to pay under the Fair Labor Standards Act (FLSA). Judge John R. Padova ordered the parties to submit supplemental briefing on the Defendants’ Motions to Dismiss in light of the…
On June 21, 2021, the U.S. Department of Labor (DOL) announced a Notice of Proposed Rulemaking to limit the amount of non-tip producing work that a tipped employee can perform when an employer is taking a tip credit. In other words, when an employee is working in a tipped occupation and the employee has performed a substantial amount of non-tipped labor (more than 20% or 30 consecutive minutes), the employer can no longer take a…
On April 16, 2021, Governor Jay Inslee signed into law the Washington Wage Recovery Act, allowing employees to place a lien on their employers’ property to secure unpaid wages. The purpose of the law is to provide employees with another tool to secure their unpaid wages. Currently, Washington employees must wait until resolution of a civil demand or lawsuit or an investigation by a governmental agency to receive payment of unpaid wages. With the Washington…
The Biden presidency has become a focus of employers who are looking to see what policy and enforcement priorities will come out of the federal Department of Labor. In addition, the pandemic has placed a spotlight on low-wage workers and the policies that affect them. As the administration has passed the 100-day mark, we expect to see a strong focus on wage and hour issues at the federal level as the government ramps up additional…
On May 25, 2021, the Illinois General Assembly approved an amendment to the Illinois Wage Payment and Collection Act (the Act). If approved by Governor J.B. Pritzker, the change would require employers who violate the Act to pay damages of 5% of the amount of any underpayment of wages, compensation, or wage supplements for each month following the date of payment during which the amount(s) owed remain unpaid. The new 5% penalty would represent a…
Although the Department of Labor (DOL) has yet to issue the regulations regarding the FFCRA, this week, the DOL issued guidance for employers who are subject to the paid leave requirements of the Families First Coronavirus Response Act (FFCRA). The Wage & Hour Division’s website, COVID-19 and the American Workplace, contains links to various Fact Sheets, Q&A documents, the required posters to be displayed, and a Field Assistance Bulletin (2020-1). While some aspects of…