Wage and HourBlog Posts
It’s Cut and Dry: Ninth Circuit Adopts “Primary Beneficiary” Analysis, Concludes Cosmetology and Hair Design Students Were Interns, Not EmployeesFormer students at a cosmetology and hair design school with locations in California and Nevada were interns and not employees entitled to wages under the FLSA or state law, the Ninth Circuit has held. Benjamin v. B&H Education, 2017 U.S. App. LEXIS 25672 (9th Cir. Dec. 19, 2017). In so concluding, the Ninth Circuit adopted...… Continue ReadingDecember 21, 2017 |
Hearst Interns Were “Primary Beneficiaries” of Program and Not Employees, Second Circuit AffirmsSeveral former interns of the Hearst Corporation, one of the world’s largest magazine publishers, were just that: unpaid interns, not employees entitled to minimum wage or overtime under the FLSA, the Second Circuit has held. Wang v. Hearst Corp., 2017 U.S. App. LEXIS 24789 (2nd Cir. Dec. 8, 2017). The Second Circuit has jurisdiction over...… Continue ReadingDecember 19, 2017 |
Second Circuit Makes it Official (Again): FLSA Claims are Subject to ArbitrationStating unequivocally what it previously had assumed, the Court of Appeals for the Second Circuit recently held that FLSA claims are arbitrable, notwithstanding the requirement that FLSA litigation settlements be “supervised.” Rodriguez-Depena v. Parts Authority Inc., 2017 U.S. App. LEXIS 24995 (2nd Cir. Dec. 12, 2017). The Second Circuit had in recent years addressed various...… Continue ReadingDecember 18, 2017 |
Governor Cuomo Contemplating Elimination of Tip CreditEmployers in New York currently are permitted to pay tipped workers a direct cash wage that is below the State minimum wage and take a “credit” for some of the tips received by employees to satisfy the difference between the cash wage paid and the full minimum wage. For example, in New York City beginning...… Continue ReadingDecember 18, 2017 |
Toll Road Ahead: Fourth Circuit Rules Mixed-Fleet Interstate Truck Drivers May Be Entitled to Overtime PayDespite the overtime exemption provided by the Motor Carrier Act, interstate trucking employers who operate “mixed fleets” – those with vehicles both over and under 10,000 pounds – may owe overtime pay to drivers of the smaller vehicles, the Fourth Circuit Court of Appeals recently ruled. Schilling v. Schmidt Baking Co., 2017 U.S. App. LEXIS...… Continue ReadingDecember 8, 2017 |
Refinery Workers’ Pre-Shift Wait Time Not Compensable, Fifth Circuit HoldsConcluding that the unstructured time spent by the plaintiffs between arriving at the oil refinery and the beginning of their shifts was not “integral and indispensable” to their duties erecting scaffolds at the refinery, the Fifth Circuit held that this time was not compensable under the FLSA. Bridges v. Empire Scaffold, LLC, 2017 U.S. App....… Continue ReadingNovember 27, 2017 |
Staffing Firms Benefit from Sixth Circuit Administrative Exemption RulingStaffing firms may have something extra to be thankful for this holiday season: Finding that certain account managers exercised discretion and independent judgment when matching candidates with temporary positions, the Sixth Circuit Court of Appeals recently held that these temporary staffing firm employees fell within the FLSA’s administrative exemption. Perry v. Randstad Gen. Partner (US)...… Continue ReadingNovember 27, 2017 |
Ninth Circuit Concurs that Workweek, Not Individual Hour, is Relevant Timeframe for Determination of Minimum Wage ComplianceIn an issue of first impression, the Ninth Circuit joined the Second, Fourth, Eighth and D.C. Circuits (and the position adopted by the Department of Labor) that, in determining whether an employer has complied with the minimum wage provisions of the Fair Labor Standards Act (“FLSA”), the proper inquiry is whether the total compensation for...… Continue ReadingNovember 21, 2017 |
National Appliance and Electronics Retailer’s Sales Commission Policy Was Lawful – For the Most Part, Sixth Circuit RulesIn what may be viewed as a pyrrhic victory, now-defunct[1] “big box” electronics, appliance and furniture retailer hhgregg’s commission-with-draws compensation program generally was lawful under the FLSA, the Sixth Circuit Court of Appeals has held. However, its policy holding employees liable for any unearned draw payments upon termination of employment would violate the Act. Stein...… Continue ReadingNovember 14, 2017 |
California to Hold Direct Contractors Jointly Liable for Subcontractor’s Unpaid Wages and Fringe BenefitsBeginning with contracts entered into on or after January 1, 2018, direct (general) contractors in California will be held jointly liable for their subcontractors’ unpaid employee wages, fringe benefit or other benefit payments or contributions under Assembly Bill 1701, signed into law by Governor Jerry Brown on October 14th. This joint liability requirement is codified...… Continue ReadingNovember 10, 2017 |