This is the first article in our four-part series titled “Rethinking Pay Equity,” a special series of legal alerts aimed at providing practical guidance to help employers address the many new rules, regulations, and best practices around equal pay in preparation for Equal Pay Day 2019. The series will culminate with a unique, complimentary webinar on April 2, Equal Pay Day, by the Co-Chairs of the Jackson Lewis Pay Equity Resource Group.
The U.S. Department of Labor (DOL) has issued a new proposed rule raising the annual minimum salary requirements for the Fair Labor Standards Act (FLSA) “white collar” overtime exemptions (executive, administrative, and professional). Under the new proposed rule, the salary level for the white collar exemptions will increase to $35,308, or $679 per week.
The National Labor Relations Board (NLRB) has held that in deciding whether an individual is an independent contractor or an employee, it will return to focusing on the extent to which the arrangement between the ostensible employer and the alleged employee provided an “entrepreneurial opportunity” to the individual, overruling a 2014 Board decision. SuperShuttle DFW, Inc., 367 NLRB No. 75 (Jan. 25, 2019).
- The National Labor Relations Board (NLRB) reinstated its pre-2014 standard for determining whether an individual is an independent contractor or an employee. SuperShuttle DFW, Inc., 367 NLRB No. 75 (Jan. 25, 2019). The NLRB determined that the employer’s shuttle van drivers were not employees, but independent contractors. Thus, they were not covered by the National Labor Relations Act (NLRA), and therefore, they were not eligible to unionize.
Over the past year, state and local governments responded in a variety of ways to national policy, and the midterm elections painted a picture of what’s in store for employers in 2019 and beyond. Jackson Lewis’ annual report outlines upcoming issues, trends, legislation and regulations employers need to be aware of in the coming year.
Highlights include:
While the federal minimum wage has remained stalled at $7.25 an hour since 2009, there has been significant movement at the state level, with some states enacting a minimum wage rate that is now more than double the federal level.
Seattle is currently the leader for 2019, increasing its minimum wage to $16.00 per hour beginning in January for large employers (those with more than 500 employees). New York is close behind, increasing the minimum wage to $15.00 per hour for large employers located in New York City, though the state minimum will be $11.10 in 2019.
The Department of Education (DOE) released proposed Title IX regulations dictating the process by which colleges and universities must handle allegations of sexual misconduct on November 16, 2018.
The Wage and Hour Division (WHD) of the Department of Labor (DOL) has reissued a 2009 opinion letter, effectively withdrawing enforcement guidance that made the tip credit under the Fair Labor Standards Act (FLSA) unavailable for tipped employees who spend more than 20% of their time performing allegedly non-tip-generating duties.
Most safety incentive programs and post-incident drug testing policies will not be considered retaliatory and unlawful under a new Standard Interpretation from the Occupational Safety and Health Administration (OSHA).
On September 27, 2018, the Kentucky Supreme Court issued its opinion in Northern Kentucky Area Development District v. Snyder, No. 2017-SC-000277-DG, and held that Kentucky employers may not require employees to sign arbitration agreements as a condition of their employment.
In reaching its conclusion, the Court relied upon KRS 336.700(2), which states: