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;
An Apple a Day May Increase Their Pay: Employees Seek Pay For Checking Emails After Hours
Hold the iPhone —a recent lawsuit by a group of Chicago police officers should have employers on high alert—at least those who permit, officially or not, non-exempt employees to do anything business-related on a mobile device.
In this lawsuit, which recently started trial in the U.S. District Court for the Northern District of Illinois, the
Play Ball and Win ‘Em All—Overtime Hits the Big Leagues
Continuing the trend of expanding Fair Labor Standards Act (FLSA) overtime rules outside the traditional realm of hourly manufacturing or retail workers, two recent events show that employers should be aware that exemption and independent contractor issues are on the forefront of labor scrutiny.
Two bits, four bits, six bits a dollar—pay us more or
DOL’s Proposed FLSA Regs Will More Than Double the Salary Requirement for Overtime Exemption
The Department of Labor issued its long-awaited proposed FLSA salary regulations today and, as many feared, they will have a massive impact on American businesses, more than doubling the salary companies must pay their employees to qualify for exempt status from overtime. The current minimum salary for exemption is $455 per week ($23,660 annually). The