Wage & Hour

  • 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.

  • July 22, 2024

    9th Circ. Backs TSA's Win In Ex-Worker's Retaliation Suit

    The Ninth Circuit declined to reinstate a lawsuit alleging the Transportation Security Administration fired an officer for complaining that he faced a hostile work environment, saying he failed to overcome the agency's assertion that he was terminated for refusing to comply with an investigation into alleged criminal activity.

Expert Analysis

  • Handbook Hot Topics: Attendance Policies

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    Employee attendance problems are among the most common reasons for disciplinary action and discharge, which is why a clear policy neatly laid out in an employee handbook is necessary to articulate expectations for workers and support an employer's position should any attendance-related disputes arise, says Kara Shea at Butler Snow.

  • Noncompete Ban Is Key To Empowering Low-Wage Workers

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    The Federal Trade Commission's proposed ban on noncompete clauses is needed because limitations alone have very little practical value to low-wage workers, who will continue to be hurt by the mere existence of these clauses unless they are outlawed, says Brendan Lynch at Community Legal Services of Philadelphia.

  • Top 5 Issues For Employers If Their Bank Suddenly Fails

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    The sudden closure of a bank can create a host of ripple effects, and if such a liquidity crisis occurs, employers should prioritize fulfilling their payroll obligations, as failing to do so could subject employers and even certain company personnel to substantial penalties, say attorneys at Manatt.

  • Prepare Now To Comply With NJ Temp Worker Law

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    New Jersey temporary staffing firms and their clients must prepare now for the time-consuming compliance requirements created by the controversial new Temporary Laborers' Bill of Rights, or face steep penalties when the law's strict wage, benefit and record-keeping rules go live in May and August, say attorneys at Duane Morris.

  • Employment-Related Litigation Risks Facing Hospitality Cos.

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    A close look at recent hospitality industry employment claims highlights key issues companies should keep an eye out for, and insurance policy considerations for managing risk related to wage and hour, privacy, and human trafficking claims, say Jan Larson and Huiyi Chen at Jenner & Block.

  • Acquiring A Company That Uses A Professional Employer Org.

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    With the professional employer organization industry rapidly expanding, those seeking to acquire a company that uses a PEO should understand there are several employment- and benefits-related complexities, especially in regard to retirement, health and welfare plans, say Megan Monson and Taryn Cannataro at Lowenstein Sandler.

  • What Could Lie Ahead For Prop 22 After Calif. Appellate Ruling

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    On the heels of a California appeals court’s recent decision to uphold Proposition 22 — which allows gig companies to classify workers as independent contractors — an analysis of related rulings and legislation over the past five years should provide context for the next phase of this battle, says Rex Berry at Signature Resolution.

  • 3rd Circ. Ruling Offers Tools To Manage Exempt Employees

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    The Third Circuit’s recent opinion in Higgins v. Bayada Home Health, finding the Fair Labor Standards Act allows employers to deduct paid time off for missed employee productivity targets, gives companies another resource for managing exempt employee inefficiency or absenteeism, says Laura Lawless at Squire Patton.

  • Illinois Paid Leave Law May Create Obstacles For Employers

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    Illinois' Paid Leave for All Workers Act, which goes into effect next year, could create issues and potential liability for employers due to its ambiguity, so companies should review and modify existing workplace policies to prevent challenges, including understaffing, says Matt Tyrrell at Schoenberg Finkel.

  • What Employers Must Know About FLSA 'Salary Basis' Rule

    Excerpt from Practical Guidance
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    To satisfy the salary basis requirement for administrative, executive and professional employee exemptions under the federal Fair Labor Standards Act, employers must take care not to jeopardize employees' exempt status through improper deductions, says Adriana Kosovych at Epstein Becker.

  • Water Cooler Talk: Quiet Quitting Insights From 'Seinfeld'

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    Tracey Diamond and Evan Gibbs at Troutman Pepper chat with Paradies Lagardere's Rebecca Silk about George Costanza's "quiet quitting" tendencies in "Seinfeld" and how such employees raise thorny productivity-monitoring issues for employers.

  • How FLSA Actions Are Playing Out Amid Split On Opt-In Issue

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    Courts are currently split on whether opt-in plaintiffs in collective actions under the Fair Labor Standards Act who join a lawsuit filed by another employee must establish personal jurisdiction, but the resolution could come sooner than one might expect, say Matt Abee and Debbie Durban at Nelson Mullins.

  • Pros And Cons As Calif. Employers Rethink Forced Arbitration

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    As California employers reconsider mandatory arbitration pacts following favorable high-profile federal and state court rulings, they should contemplate the benefits and burdens of such agreements, and fine-tune contract language to ensure continued enforcement, say Niki Lubrano and Brian Cole at CDF Labor Law.