Wage & Hour

  • July 24, 2024

    A Novel Arbitration Maneuver In W&H Case May Go Too Far

    A potential new frontier in the "arms race" of arbitration has cropped up in a misclassification case involving an employer who rolled out an arbitration program well into litigation — a move attorneys say might be so aggressive as to represent a red line for courts.

  • July 24, 2024

    Long Island Restaurant Escapes Service Fee Tip Suit 

    A Long Island restaurant won't have to face a worker's lawsuit alleging it unlawfully retained a service charge instead of distributing it among servers as promised after a New York federal judge on Wednesday adopted a magistrate judge's reasoning that the service charge was not a voluntarily paid tip.

  • July 24, 2024

    3rd Circ. Says ​NJ Temp Worker Law Is Constitutional

    Staffing industry groups can't halt a New Jersey law strengthening protections for temporary workers because it doesn't discriminate between out-of-state and in-state companies and is therefore constitutional, the Third Circuit ruled Wednesday, affirming a district court's ruling.

  • July 24, 2024

    Clowns' Deal In Wage Suit Needs Further Review

    The settlement a group of clowns and entertainers reached with the company they accused of misclassification will have to go through court approval, a New York federal judge ruled, saying the court can't make sure the deal is fair and reasonable as it stands.

  • July 24, 2024

    Rising Star: Weil's Rebecca Sivitz

    Rebecca Sivitz of Weil Gotshal & Manges LLP has helped several companies successfully handle mergers and restructuring, including helping The Kroger Co. face a first-of-its-kind challenge from the Federal Trade Commission, earning her a spot among the employment law practitioners under age 40 honored by Law360 as Rising Stars.

  • July 24, 2024

    Co. Accused Of Firing New Mom Can't Sink Sex Bias Suit

    A California federal judge refused to toss a suit from a former manager who said a real estate company fired her because it assumed her work would suffer after she had a child, saying it was plausible that stereotypes cost her the job.

  • July 24, 2024

    Red Lobster Accused Of Shorting Wages With Tip Credit

    Red Lobster has not been paying its tipped employees all their wages owed, a worker claimed in a proposed collective action in Maryland federal court, saying the seafood chain made them perform excessive non-tip-generating work that drove their take-home pay below minimum wage.

  • July 23, 2024

    Construction Co. Protests Union Clause In Army Corps Deal

    Hensel Phelps Construction Co. has protested over terms of an Army Corps of Engineers construction contract requiring bidders to enter into a project labor agreement, mandated by regulation, saying the PLA requirement violates a competitive contracting law.

  • July 23, 2024

    FTC Attys On Kroger Case Get Extensions After IT Outage

    The administrative law judge overseeing the Federal Trade Commission's in-house challenge to Kroger and Albertsons' $25 billion merger has given the agency and the grocery behemoths two extra days on a couple of filing deadlines after the FTC said the worldwide Microsoft outage left several counsel laptops unusable.

  • July 23, 2024

    Federal Minimum Wage Hits 15 Years Without Movement

    The federal minimum wage hasn’t budged in 15 years, despite efforts from both Democrats and Republicans to raise it, and as statewide and local wage floors have far exceeded the national rate. Here, Law360 explores the federal floor.

  • July 23, 2024

    Healthcare Co. Can't Escape Meal Break, OT Suit

    A New Mexico healthcare provider can't dodge a worker's proposed collective action claiming it implemented automatic meal break deductions and didn't incorporate all compensation into overtime wages, with a federal judge ruling Tuesday that it was the worker's joint employer.

  • July 23, 2024

    NC Meatpacking Co. Can Depose Workers In Wage Dispute

    A North Carolina federal court has permitted a chicken processing company to question two workers as part of a wage suit against the wishes of a putative class of employees, saying the interrogation request didn't come too late.

  • July 23, 2024

    EY Wins Again After Misclassification Suit Trip To High Court

    A worker claiming Ernst & Young LLP misclassified him as an independent contractor can't nix an arbitrator award in favor of the accounting firm tossing his allegations, a California federal judge ruled, saying that the arbitrator applied the correct laws and their statute of limitations.

  • July 23, 2024

    Airport Cleaner Must Honor Arbitration Pact She Can't Read

    A California federal judge sent into arbitration a Spanish-speaking cleaner's lawsuit accusing an airport services company of unlawfully terminating her, saying the court must enforce her English-only arbitration agreement because she had a bilingual person helping her with her paperwork.

  • July 23, 2024

    Amazon Fights To Arbitrate Sellers' Misclassification Claims

    Amazon urged a California appellate panel on Tuesday to compel arbitration for individual claims from two sellers accusing the online retailer of misclassifying them as independent contractors, and to direct the trial court to toss their representative claims under the state's Private Attorneys General Act.

  • July 23, 2024

    Senate Dems Roll Out Bill To Codify Chevron Deference

    Sen. Elizabeth Warren, D-Mass., led a group of Democratic senators Tuesday in introducing a bill to codify the now-defunct doctrine of Chevron deference after it was struck down by the U.S. Supreme Court last month.

  • July 23, 2024

    As NCAA Loses On Athlete Pay, Economic Realities Shine

    The Third Circuit's ruling that NCAA athletes may plausibly plead they are employees who are owed wages for the time they spend on sports underscores how its long-standing multifactor test for entitlement to pay remains the starting point for a variety of scenarios, attorneys told Law360.

  • July 23, 2024

    Rising Star: Gibson Dunn's Ryan Stewart

    Ryan Stewart of Gibson Dunn & Crutcher LLP helped car rental giant Enterprise dodge $160 million in claims that it illegally collected biometric data from workers when it used their fingerprints to register their arrival at work, on top of other victories he secured for Amazon and sales company Credico, earning him a spot among the employment law practitioners under age 40 honored by Law360 as Rising Stars.

  • July 23, 2024

    4 Steps For Keeping Bias Out Of Performance Reviews

    Though regular performance reviews are standard in many jobs, experts warn that bias can easily creep into evaluations and lead to illegal gender- and race-based pay gaps in a time of increased legislative and public focus on pay inequity. Here, experts from both sides of the bar discuss four strategies to ensure performance reviews aren't unfairly hitting protected workers' pocketbooks.

  • July 22, 2024

    State Street Sets Aside $4.2M To Address Wage Discrimination

    Federal financial services provider State Street agreed to set aside $4.2 million to make wage adjustments in the future as part of a settlement to resolve allegations that it discriminated against some women managing directors with its base pay and bonuses, the U.S. Department of Labor announced Monday.

  • July 22, 2024

    Harris' Record Evinces Drive To Boost Employee Rights

    While Vice President Kamala Harris' work on employment policy has been less publicized than her other endeavors, experts said the potential Democratic presidential nominee's tenure in Congress makes clear that enhancing workplace protections is a priority for her.

  • July 22, 2024

    Nissan Dealer Can't Escape Ex-Worker's OT Claims

    A Missouri Nissan dealership is still on the hook in a former office manager's lawsuit alleging she was misclassified as overtime exempt, with a federal judge ruling Monday it was still unclear whether the ex-employee's work involved independent decision making that could render her ineligible for overtime premiums.

  • July 22, 2024

    Bankrupt Nursing Homes To Pay $36M To End DOL Wage Suit

    More than a dozen bankrupt nursing homes will have to pay nearly $36 million in a U.S. Department of Labor's suit claiming workers weren't paid full wages after creating "an adversarial" payroll structure, a Pennsylvania federal judge ruled Monday.

  • July 22, 2024

    Approval Sought For $1.2M Deal In Labor Trafficking Suit

    A car parts manufacturer, two recruiting agencies and a group of Mexican engineers who alleged the companies lured them to the U.S. with false promises of high-paying jobs before forcing them to work manual labor for long hours and low wages have reached a tentative $1.2 million settlement.

  • July 22, 2024

    Home Health Co.'s $1M Wage Deal Scores Initial OK

    A post-acute healthcare network will shell out about $1 million to end a suit that claimed it cheated direct support personnel workers out of overtime after misclassifying them as independent contractors, after a New Mexico federal judge approved the deal Monday.

Expert Analysis

  • 3 Wage And Hour Tips For A Post-Chevron World

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    Employers can take three steps to handle day-to-day wage and hour compliance in the event that the U.S. Supreme Court soon reshifts the administrative law landscape by overturning the Chevron doctrine, which could cause a massive sea change in the way we all do business, say Seth Kaufman and Matthew Korn at Fisher Phillips.

  • After Years Of Popularity, PAGA's Fate Is Up In The Air

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    The last two years held important victories for plaintiff-side employment attorneys in California Private Attorneys General Act litigation at the trial and appellate court levels, but this hotbed of activity will quickly lose steam if voters approve a ballot measure in November to enact the California Fair Pay and Employer Accountability Act, says Paul Sherman at Kabat Chapman.

  • One Contract Fix Can Reduce Employer Lawsuit Exposure

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    A recent Fifth Circuit ruling that saved FedEx over $365 million highlights how a one-sentence limitation provision on an employment application or in an at-will employment agreement may be the easiest cost-savings measure for employers against legal claims, say Sara O'Keefe and William Wortel at BCLP.

  • Water Cooler Talk: Sick Leave Insights From 'Parks And Rec'

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    Tracey Diamond and Evan Gibbs at Troutman Pepper spoke with Lisa Whittaker at the J.M. Smucker Co. about how to effectively manage sick leave policies to ensure legal compliance and fairness to all employees, in a discussion inspired by a "Parks and Recreation" episode.

  • What CRA Deadline Means For Biden Admin. Rulemaking

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    With the 2024 election rapidly approaching, the Biden administration must race to finalize proposed agency actions within the next few weeks, or be exposed to the chance that the following Congress will overturn the rules under the Congressional Review Act, say attorneys at Covington.

  • Justices Clarify FAA But Leave Behind Important Questions

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    The U.S. Supreme Court's decision last month in Bissonnette v. LePage firmly shuts the door on any argument that the Federal Arbitration Act's Section 1 exemption is limited to transportation workers whose employers transport goods on behalf of others, but two major issues remain unresolved, say Joshua Wesneski and Crystal Weeks at Weil.

  • What To Expect From The DOL's Final Overtime Rule

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    The U.S. Department of Labor's final overtime rule dramatically increases the salary threshold for white collar workers to be exempt from overtime under the Fair Labor Standards Act, so employers should prioritize identifying the potentially affected positions and strategically consider next steps, say Leslie Selig Byrd and Deryck Van Alstyne at Bracewell.

  • Data Shows H-2B Wages May Be Skewed High By Sample Size

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    Occupational Wage and Employment Statistics wage data from April illustrates that smaller sample sizes from less populated areas may be skewing prevailing wages for H-2B visas artificially high, potentially harming businesses that rely on the visa program, says Stephen Bronars at Edgeworth Economics.

  • Refresher On Employee Qualifications For Summer Interns

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    Before companies welcome interns to their ranks this summer, they should consider the extent to which the interns may be entitled to the same legal protections as employees, including the right to be paid for their hours worked and to receive at least minimum wage and overtime, says Kate LaQuay at Munck Wilson.

  • How To Prepare As Employee Data Reporting Deadlines Near

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    As filing deadlines approach, government contractors and private companies alike should familiarize themselves with recent changes to federal and California employee data reporting requirements and think strategically about registration of affirmative action plans to minimize the risk of being audited, say Christopher Durham and Zev Grumet-Morris at Duane Morris.

  • The Practical Effects Of Justices' Arbitration Exemption Ruling

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    The U.S. Supreme Court's recent decision in Bissonnette v. LePage Bakeries, that a transportation worker need not work in the transportation industry to be exempt from the Federal Arbitration Act, may negatively affect employers' efforts to mitigate class action risk via arbitration agreement enforcement, say Charles Schoenwetter and Eric Olson at Bowman and Brooke.

  • New Wash. Laws Employers Should Pay Attention To

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    The Washington Legislature ended its session last month after passing substantial laws that should prompt employers to spring into action — including a broadened equal pay law to cover classes beyond gender, narrowed sick leave payment requirements for construction workers and protections for grocery workers after a merger, say Hannah Ard and Alayna Piwonski at Lane Powell.

  • AI In Accounting Raises OT Exemption Questions

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    A recent surge in the use of artificial intelligence in accounting work calls into question whether professionals in the industry can argue they are no longer overtime exempt under the Fair Labor Standards Act, highlighting how technology could test the limits of the law for a variety of professions, say Bradford Kelley at Littler and Stephen Malone at Peloton Interactive.