On August 1, 2016, Massachusetts Governor Charles Barker signed the Act to Establish Pay Equity.  The Act, which makes several important changes to Massachusetts wage laws, will go into effect on July 1, 2018.
Continue Reading Massachusetts – The Latest Jurisdiction to Update Its Pay Equity Laws

On July 22, 2015, Governor Brown signed AB 2535 that clarifies which employees for whom an employer must track hours worked and record those hours on their wage statements.  The bill will become effective January 1, 2017.

Prior to this amendment, Labor Code section 226 required that an employee’s paystub include hours worked for all employees except individuals who are paid “solely” by salary and are “exempt from payment of overtime” under Labor Code section 515(a) or the governing wage order.  As written, this seemed to require hours on the paystub for exempt outside sales people and executives who are not paid solely by salary but receive bonuses and stock options even though these employees do not record hours worked and hours worked is not a relevant figure when calculating their wages.  In fact, in Garnett v. ADT, LLC, 139 F. Supp. 3d 1121 (2015), the district court held that exemption in Labor Code section 226 did not apply to exempt outside salespersons since they were paid solely by commission (and not salary) and, therefore, had to have their total hours worked included on their paystubs.  The Garnett court noted in its decision that, “[w]hile the usefulness of reporting total hours worked for employees paid solely by commission is not entirely clear, it is nonetheless required by Labor Code Section 226 (a).”


Continue Reading Governor Brown Signs Bill Clarifying Wage Statement Requirements for Exempt Employees

In March 2014, President Obama signed an executive order directing the Department of Labor to revise its aging rules governing overtime pay for white collar employees.  The Department solicited comments from the public on an earlier draft in July 2015.  Yesterday, the Department of Labor released the final version of the new rules.  The new version includes a number of changes—some expected, but others less so.
Continue Reading DOL Makes Last-Minute Tweaks to New Overtime Exemption Rules

April 2016 has proven fruitful for California employees.  Last month, Governor Brown approved a series of gradual increases raising the statewide minimum wage rate in California to at least $15.00 by 2022.  A week later the Governor approved Assembly Bill No. 908, which revises the income-based formula to calculate benefits for a leave of absence covered by either California’s Paid Family Leave (PFL) or State Disability Income (SDI) programs for leave periods commencing on or after January 1, 2018. 
Continue Reading Onward and Upward – California’s Minimum Wage And Paid Family Leave Benefits Set To Increase Substantially Over The Next Few Years

The United States Equal Employment Opportunity Commission (“EEOC”) has published proposed revisions to the requirements associated with the Employer Information Report (EEO-1). The EEO-1 already requires employers with more than 100 employees to provide certain employment information to the federal government, including the ethnic, racial and gender breakdown of their employees.  The proposed revisions would require employers to include in their EEO-1 reports information regarding aggregate data on pay ranges and hours worked. 
Continue Reading EEOC Proposes New Pay Data Reporting Requirements for Employers

Assembly Bill 1513, will significantly change the requirements governing the payment of piece-rate compensation in California beginning January 1, 2016.  AB 1513 creates Labor Code section 226.2 which sets forth requirements for the payment of a separate hourly wage for rest and recovery periods and for “other nonproductive time” worked by piece-rate employees.  AB 1513 defines “other nonproductive time” as “time under the employer’s control, exclusive of rest and recovery periods, that is not directly related to the activity being compensated on a piece-rate basis.”
Continue Reading Changes to California’s Piece-Rate Compensation Requirements

On May 27, 2015, the New York State Department Of Labor (“NYSDOL”) published proposed rules addressing the payment of wages by payroll debit cards.  Pursuant to the draft regulations, prior to paying an employee by payroll debit card, an employer must:
Continue Reading New York State Department of Labor Published Proposed Rules Regarding Non-Exempt Employees Paid by Debit Card

In a decision issued on Tuesday, December 9, 2014, the United States Supreme Court ruled that employees are not entitled to compensation under the federal Fair Labor Standards Act (“FLSA”) for the time they spend waiting to undergo, and actually do undergo, security screenings.  The Court’s unanimous decision in Integrity Staffing Solutions, Inc. v. Busk, et al., reverses a judgment of the United States Court of Appeal for the Ninth Circuit which found that Integrity Staffing employees could state an unpaid wages claim under the FLSA for undergoing a daily security screening because the screenings were required by, and for the benefit of, their employer.
Continue Reading U.S. Supreme Court Rules that Security Screening Time is Non-Compensable Under Federal Law and The Portal-to-Portal Act