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Hoping to clarify when entities should be treated as “joint employers” under the FLSA, the Department of Labor (“DOL”) recently announced its intent to revise its so-called “joint employer” regulations under the Fair Labor Standards Act (“FLSA”). Under the FLSA, covered employers must pay nonexempt employees at least the federal minimum wage for all hours worked and overtime wages for all hours worked in excess of 40 hours in a workweek. Since 1939, the DOL has recognized that two or more entities may sometimes “jointly” employ a single employee and share legal responsibility for that employee’s wages for hours worked for either entity. However, the DOL has not formally addressed the conditions under which “joint employment” relationships exist since 1958.
Continue Reading Aiming for Clarity, DOL Proposes to Update the FLSA’s “Joint Employer” Regulations

The recent passage of the Consolidated Appropriations Act of 2018 (“H.R. 1625”), an 878-page omnibus spending bill, significantly changes the rules for tip pooling under the Fair Labor Standards Act (the “FLSA”). While the conditions for taking a tip credit toward federal minimum wage obligations remain essentially unchanged, H.R. 1625 appears to permit the inclusion of a larger group of employees in tip pools when a tip credit is not taken. At the same time, H.R. 1625 still prohibits an employer from keeping any portion of the tips received by its employees and expands the scope of remedies and penalties available for violations of the tip rules.
Continue Reading New Tip Pooling Guidelines For Employers

The deadline for California Governor Jerry Brown to sign new bills into law officially expired October 15, 2017. In addition to signing five bills last week, the Governor signed three more employment-related bills into law over the weekend relating to the use of job applicants’ criminal history, the required components of sexual harassment training, and the liability of building contractors for their subcontractors’ failure to pay wages, fringe benefits, or other benefit payments. The three new laws all become effective on January 1, 2018.
Continue Reading California Governor Approves Three More Employment Laws: “Ban The Box”; Expansion of Sexual Harassment Training; and Contractors Liable for Subcontractors’ Wage and Benefit Obligations

Late Sunday afternoon, Governor Brown vetoed a proposal to impose a controversial new mandate for large California employers to collect and publicly report data about the salaries of male and female employees and board members. The Governor also vetoed a proposal to amend the California Labor Code to expressly prohibit employers from discriminating against employees based on their “reproductive health decisions.”
Continue Reading California Governor Vetoes Two Bills Related to Public Report of Gender Wage Differentials and Discrimination Based on “Reproductive Health Decisions”

The 2017 California Legislature adjourned on September 15, 2017, and resulted in more than 700 bills being sent to Governor Jerry Brown’s desk for approval. Although the deadline for the Governor to sign new bills into law does not officially expire until October 15, the Governor has already given his stamp of approval to a handful of new employment laws that will take effect on January 1, 2018, including one from the California Chamber of Commerce’s annual list of “Job Killers.” Below is a summary of the major bills recently signed into law.
Continue Reading 5 New Laws: California Governor Approves Employee-Friendly Laws

Over the past few years, one of the biggest trends in employment law has been the proliferation of local ordinances imposing workplace standards beyond those mandated by state and federal laws. While many state governments have moved to preempt such regulations, California’s legislature has openly encouraged them, particularly in the wage and hour context. Unsurprisingly, California cities have passed a flurry of new workplace ordinances in recent years. Three new developments are worth noting for employers with employees working or living in the San Francisco Bay Area.
Continue Reading Bay Area Local Law Update: Emeryville’s “Fair Workweek Ordinance”; San Francisco Bans Salary History Inquiries; And Additional Accommodations For Lactating Employees