Companies impacted by the Silicon Valley Bank (SVB) failure may be concerned about their ability to meet immediate payroll obligations as they await funds from government regulators. Despite regulatory assurances that funds will be available in the near-term, employers with funds in SVB may remain concerned about their ability to meet ongoing obligations. … Continue Reading
SCOTUS Rules That Worker Who Was Paid High Daily Wage is Non-Exempt and Entitled to Overtime Pay
On February 22, 2023, the Supreme Court of the United States ruled that an employee who is paid a daily rate for each day worked, no matter how high the rate, is not exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and, therefore, entitled to overtime pay for hours worked over 40 in a work week. … Continue Reading
Department of Labor Issues New Guidance on Telework Under the Fair Labor Standards Act and Family and Medical Leave Act
The Department of Labor’s Wage and Hour Division (“WHD”) recently issued Field Assistance Bulletin (FAB) No. 2023-1 to address breaks for employees who telework under the Fair Labor Standards Act (“FLSA”), and application of the Family and Medical Leave Act (“FMLA”) to teleworking employees.
The FLSA requires covered employers to pay nonexempt employees for all hours worked, including work performed in their home or otherwise away from the employer’s premises or job site.… Continue Reading
Pregnant and Nursing Workers Benefit from Expanded Employment Protections
On December 29, 2022, as part of the Fiscal Year 2023 Omnibus Spending Bill, President Biden signed into law two pieces of legislation that will benefit pregnancy and nursing mothers – the Pregnant Workers Fairness Act (PWFA) and the Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP for Nursing Mothers Act). … Continue Reading
New Jersey Legislature Delays “Bill of Rights” for Temporary Workers
Earlier this week, New Jersey state senators tabled the vote on Bill S511, landmark legislation dubbed the NJ temporary worker “Bill of Rights.” Governor Phil Murphy conditionally vetoed the proposed legislation last month, and advocates expected the bill to pass following the state Assembly’s approval of Gov. Murphy’s revisions. But ultimately, state senators pulled the bill due to insufficient support to pass the revised version, leaving employers with the current state of flexibility to work with temporary agencies to fill gaps in their workforce.… Continue Reading
U.S. Department of Labor Issues Proposed Rule on Independent Contractor Status
On October, 11, 2022, the U.S. Department of Labor (DOL) released a proposed rule to update the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA) or an independent contractor. The proposal would significantly broaden the classification of workers as employees under the FLSA. … Continue Reading
August Updates to Pennsylvania Overtime and Tipped Wages Regulations
Several wage and overtime changes will affect Pennsylvania employers starting August 5, 2022. Some updates bring Pennsylvania’s wage and overtime regulations more in line with the Federal Fair Labor Standards Act (FLSA), while others expand the distance between the two.
Employers utilizing tipped employees or a fluctuating workweek method to calculate overtime rates should pay special attention to these updates, explained here, and adjust their policies accordingly.… Continue Reading
Federal Judge Says Judicial Approval for Individual FLSA Actions Increases Litigation Costs, Makes Settlement More Difficult and is Not Required
Plaintiffs in Alcantara v. Duran Landscaping alleged that their former employer violated the Fair Labor Standards Act (FLSA) and Pennsylvania Minimum Wage Act because it failed to pay overtime premiums. Less than a year after filing suit, the parties notified the court that they resolved the claims and requested a phone call with the court to seek approval of the agreed upon settlement without having to spend the money on a formal motion.… Continue Reading
U.S. Supreme Court Ruling Denies Arbitration, Ramps Up Litigation
For the second time in two weeks, the U.S. Supreme Court has ruled against a company seeking to compel individual arbitration of Fair Labor Standards Act (FLSA) collective action claims. In Southwest Airlines Co. v. Saxon, the Court held that the plaintiff’s claims were exempt from arbitration under Section 1 of the Federal Arbitration Act (FAA), which exempts from the statute’s ambit “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” … Continue Reading
Department of Labor and National Labor Relations Board Announce Plan to Partner for Investigations and Information Sharing
The U.S. Department of Labor, Wage and Hour Division (DOL-WHD) and National Labor Relations Board (NLRB) announced plans to collaborate “to enhance and maximize the enforcement of the federal laws administered between the two agencies.” The DOL-WHD enforces the minimum wage and overtime requirements while the NLRB enforces the National Labor Relations Act (NLRA).… Continue Reading