The U.S. Department of Labor issued a Field Assistance Bulletin on June 24, 2020, announcing that it will not routinely assess pre-litigation liquidated damages as part of the settlement process for claims under the Fair Labor Standards Act. Although this announcement has largely gone “under the radar,” it actually has historic significance. The bulletin is
McDonald’s Fries Franchise Workers’ Claims, Lands Whopper of a Ruling for Franchisors
In an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees were not jointly employed by McDonald’s Corp. and thus the franchisor, McDonald’s Corp., was not liable to the employees under California
For Employers in the #MeToo Era: It’s Not the Harassment Claim, It’s the Retaliation Claim that Gets You
The era of #MeToo has caused employers to hyper-focus on harassment claims. They have fine-tuned their policies, investigated claims more carefully, and acted swiftly and sometimes even in a draconian fashion upon finding any level of harassment. In most situations, these actions can effectively eliminate an employee’s viable claims of harassment. We are seeing this
I Should Have Written That Down! 5 Quick Tips for Documenting Employee Issues
We routinely receive calls from employers who want to terminate an employee (or have been sued for doing so) but do not have a good paper trail to support their decision. Usually, we hear that the supervisor has talked to the employee repeatedly about performance or tardiness or other problems and is “done” with the
Why the Harvey Weinstein Scandal Should Scare the Pants Off Employers
Unless you have been living in a cave for the last month, you have heard about the sexual misconduct allegations against Hollywood mogul Harvey Weinstein. The story has all of the makings of a Hollywood blockbuster, except this time it’s not a movie. Here’s why it should also raise the curtain for employers outside of
Relishing the Moment: Tenth Circuit Allows Restaurant to Keep Server Tips and Rejects DOL Regulation
In a victory for restaurant employers, the Tenth Circuit Court of Appeals has ruled that Relish Catering can keep customer tips without violating the Fair Labor Standards Act (FLSA), so long as the employee is paid at an hourly rate above minimum wage. The court also found that the U.S. Department of Labor overreached in
Class Warfare: Supreme Court Agrees to Hear Cases on Arbitration Class Action Waivers
The NLRB wants to stop class action waivers in employment arbitration agreements, arguing they violate the National Labor Relations Act. This issue has been raging for several years and divided federal courts. As reported in our November 2, 2015, blog post, the Fifth Circuit Court of Appeals upheld a class action waiver in the
STOP! Texas Federal Court Issues Nationwide Injunction to Department of Labor’s FLSA Salary Increases
An update on Department of Labor’s (DOL)’s controversial new overtime regulations regarding “white-collar” exemptions.
With the U.S. DOL’s regulations increasing the minimum salary for white collar exemptions scheduled to take effect next week (December 1), a federal court in Texas today issued a nationwide injunction stopping (for now) the Fair Labor Standards Act (FLSA)
Putting the Brakes on the DOL: USSC Finds that DOL Not Entitled to Deference on Service Manager Overtime Regulation
Yesterday, in Encino Motorcars v. Navarro, No. 15-415, the U.S. Supreme Court vacated a Ninth Circuit ruling that had deferred to a Department of Labor 2011 regulation that auto service advisors were nonexempt and should receive overtime compensation. The justices said the DOL issued the regulations giving “little explanation for its decision to abandon its
Fifth Circuit Upholds Arbitrations with Class Waivers – Gasses NLRB in Murphy Oil Case
More frequently, employers are turning to arbitration agreements to keep lawsuits out of court and prevent the threat of run-away juries. Many arbitration agreements also contain class action waivers which require employees to bring any claims individually and not as a multi-party or class action. Federal courts have routinely upheld arbitration agreements with class waivers;