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Wage & Hour Law Update

Last Build Date: Mon, 12 Mar 2018 14:21:35 +0000


California Supreme Court Adopts State Agency Formula for Calculating Overtime Value of Flat-Sum Bonus, Rejecting Federal View

Mon, 12 Mar 2018 14:20:51 +0000

The California Supreme Court has held that, under state law, when an employee earns a flat-sum bonus during a pay period, the overtime pay rate will be calculated using the actual number of non-overtime hours worked by the employee during the pay period. Alvarado v. Dart Container Corp., 2018 Cal. LEXIS 1123 (Cal. Mar. 5,...… Continue Reading

U.S. Department of Labor Announces Self-Audit Program

Wed, 07 Mar 2018 20:54:32 +0000

Mistakes happen.  But when those mistakes result in a violation of the Fair Labor Standards Act, what is an employer to do?  Pay twice the amount of wages owed to cover both back wages and an amount equal to liquidated damages? Hope no one notices?  Well, thanks to the Wage and Hour Division (WHD) of...… Continue Reading

Pennsylvania Governor Seeks to Expand Overtime Pay to Currently Exempt Employees

Tue, 23 Jan 2018 02:21:15 +0000

Frustrated by years of unsuccessful efforts to raise the minimum wage through the state’s Republican-controlled legislature, and in response to the recent federal court invalidation of the Obama-era DOL’s rule that would have doubled the minimum salary requirement for the executive, administrative and professional exemptions (i.e. the “white collar” exemptions) under the FLSA, Pennsylvania Governor...… Continue Reading

Supreme Court (Re)hears Oral Argument on Application of Automobile Dealer Exemption to Service Advisors

Mon, 22 Jan 2018 20:33:10 +0000

Last week the Supreme Court heard – for the second time – oral argument in Encino Motorcars, LLC v. Navarro.  At issue is whether “service advisors” at dealerships are covered by what’s known as the “automobile dealer” exemption set forth in Section 213(b)(10)(A) of the FLSA.  That exemption excludes from overtime any “salesman, partsman, or...… Continue Reading

It’s Cut and Dry: Ninth Circuit Adopts “Primary Beneficiary” Analysis, Concludes Cosmetology and Hair Design Students Were Interns, Not Employees

Thu, 21 Dec 2017 18:40:19 +0000

Former students at a cosmetology and hair design school with locations in California and Nevada were interns and not employees entitled to wages under the FLSA or state law, the Ninth Circuit has held.  Benjamin v. B&H Education, 2017 U.S. App. LEXIS 25672 (9th Cir. Dec. 19, 2017).  In so concluding, the Ninth Circuit adopted...… Continue Reading

Hearst Interns Were “Primary Beneficiaries” of Program and Not Employees, Second Circuit Affirms

Tue, 19 Dec 2017 17:40:03 +0000

Several former interns of the Hearst Corporation, one of the world’s largest magazine publishers, were just that: unpaid interns, not employees entitled to minimum wage or overtime under the FLSA, the Second Circuit has held.  Wang v. Hearst Corp., 2017 U.S. App. LEXIS 24789 (2nd Cir. Dec. 8, 2017).  The Second Circuit has jurisdiction over...… Continue Reading

Second Circuit Makes it Official (Again): FLSA Claims are Subject to Arbitration

Mon, 18 Dec 2017 23:50:37 +0000

Stating unequivocally what it previously had assumed, the Court of Appeals for the Second Circuit recently held that FLSA claims are arbitrable, notwithstanding the requirement that FLSA litigation settlements be “supervised.”  Rodriguez-Depena v. Parts Authority Inc., 2017 U.S. App. LEXIS 24995 (2nd Cir. Dec. 12, 2017).  The Second Circuit had in recent years addressed various...… Continue Reading

Governor Cuomo Contemplating Elimination of Tip Credit

Mon, 18 Dec 2017 21:11:39 +0000

Employers in New York currently are permitted to pay tipped workers a direct cash wage that is below the State minimum wage and take a “credit” for some of the tips received by employees to satisfy the difference between the cash wage paid and the full minimum wage.  For example, in New York City beginning...… Continue Reading

Toll Road Ahead: Fourth Circuit Rules Mixed-Fleet Interstate Truck Drivers May Be Entitled to Overtime Pay

Fri, 08 Dec 2017 16:54:46 +0000

Despite the overtime exemption provided by the Motor Carrier Act, interstate trucking employers who operate “mixed fleets” – those with vehicles both over and under 10,000 pounds – may owe overtime pay to drivers of the smaller vehicles, the Fourth Circuit Court of Appeals recently ruled.  Schilling v. Schmidt Baking Co., 2017 U.S. App. LEXIS...… Continue Reading

Refinery Workers’ Pre-Shift Wait Time Not Compensable, Fifth Circuit Holds

Mon, 27 Nov 2017 19:48:18 +0000

Concluding that the unstructured time spent by the plaintiffs between arriving at the oil refinery and the beginning of their shifts was not “integral and indispensable” to their duties erecting scaffolds at the refinery, the Fifth Circuit held that this time was not compensable under the FLSA.  Bridges v. Empire Scaffold, LLC, 2017 U.S. App....… Continue Reading