Last Friday, a Texas federal court struck down the U.S. Department of Labor’s (DOL) 2024 rule raising the minimum salary levels for certain exemptions to the overtime requirements of the Federal Labor Standards Act (FLSA). The decision by Judge Sean Jordan of the U.S. District Court for the Eastern District of Texas to vacate the 2024 rule applies nationwide to all employers and comes weeks before another increase to the salary levels was set to take effect.
New Jersey Published Proposed Regulations Implementing the “Temporary Workers’ Bill of Rights”
Q. Are there any updates related to New Jersey’s Temporary Workers’ Bill of Rights?
A. Yes. As previously reported, in February, New Jersey Governor Phil Murphy signed into law the Temporary Workers’ Bill of Rights (the Bill of Rights), which established several new labor and employment protections for New Jersey’s 125,000+ temporary workers. On July 21, the New Jersey Department of Labor and Workforce Development Division of Wage and Hour Compliance published a set of proposed regulations implementing the Bill of Rights. While there is a 60-day comment period before the regulations become final, the state has represented that, at this time, it intends to enforce the Bill of Rights in accordance with the proposed regulations.
DOJ Fails to Convict in No-Poach/Wage Fixing Case
The Department of Justice (DOJ) Antitrust Division recently suffered another setback in its most recent effort to secure criminal convictions for labor-side violations of Section 1 of the Sherman Act. Having finally secured a successful criminal conviction, which came by way of plea deal and deferred prosecution agreement, the DOJ proceeded to trial in Maine against four home health executives who the government alleged had conspired to enter into a no-poach agreement and fix wages paid to home health aides. After a two-week trial, the jury acquitted all four of the defendants, marking the third time the DOJ has failed to convince a jury to convict defendants for alleged Section 1 violations in the labor market.
NYC Amends Upcoming Salary Transparency Law and Releases Key Guidance
Q: I heard that New York City recently amended the salary transparency law. What are the key aspects of the amendment and when does it go into effect?
A: As discussed in our previous post, an upcoming law requires New York City employers to include salary bands in job advertisements or postings. Employers must include the minimum and maximum salary or hourly rate for the position, and the requirement applies to both internal and external postings.
Pay Transparency and Salary Equity Laws: Coming to a State Near You?
Q: What do employers need to know about state and local pay transparency and salary equity laws?
A: Pay equity has been a hot topic for employers over the last few years and it continues to make headlines. Today, March 8, is International Women’s Day and March 15 marks this year’s “Equal Pay Day” – a date meant to symbolize how far into the year women must work to earn what men earned in the previous year.
Voters Nationwide Approve Ballot Measures Impacting the Workplace
Q: Can you provide an overview of Election Day 2020 ballot measures approved by voters that may impact the workplace?
A: While President-elect Joe Biden’s victory over incumbent President Donald Trump dominated Election Day 2020, voters also approved various ballot measures that will have repercussions for workplaces throughout the nation. Below find a summary of some of the biggest employment-related ballot measures approved by voters.
New York State To Eliminate Tip Credit For Many Employees Beginning June 2020
Q: I heard New York is changing its rules around tip credits for some types of employees. What do I need to know?
A: A tip credit is a concept permitted under the Fair Labor Standards Act (“FLSA”) and many state laws. A tip credit allows employers to pay employees a cash wage of less than the minimum wage and take a tip credit up to a set amount. For example, under the FLSA, employers can pay tipped employees a minimum cash wage of $2.13 per hour, and take a tip credit of $5.12 per hour. If employees receive less than $5.12 an hour in tips, the employer must pay the employee the difference so that an employee always earns at least $7.25 (the minimum wage) per hour. Regardless of whether an employer takes a tip credit, all tips are the property of the employee. So, if an employer takes a tip credit and the employee makes more than $5.12 per hour in tips, the additional amount belongs to the tipped employee.
Pennsylvania Supreme Court Confirms That Employers Cannot Use Fluctuating Workweek Method of Calculating Overtime
Q: I heard that the Pennsylvania Supreme Court recently issued a major ruling regarding overtime pay. What do I need to know?
A: On November 20, 2019, the Pennsylvania Supreme Court rejected the application of the fluctuating workweek method (“FWW Method”) of calculating overtime under the Pennsylvania Minimum Wage Act…
Agreement Between the Parties Dictates Whether a Third Party Bonus Should be Included in the Calculation of Overtime Pay
Q. A client of my company asked whether it could offer production bonuses to our employees who deliver their work product prior to the deadline. Does the FLSA require my company to account for these third-party bonuses when calculating the regular rate of pay for overtime purposes?
A. The answer…
New DOL Overtime Rule Takes Effect January 1, 2020
Q. Has the salary threshold increased for exempt status under the Fair Labor Standards Act?
A. On September 24 — more than five years after the Obama administration first proposed updating the overtime regulations of the Fair Labor Standards Act (FLSA) — the U.S. Department of Labor (DOL) released the…