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
Onward and Upward – California’s Minimum Wage And Paid Family Leave Benefits Set To Increase Substantially Over The Next Few Years
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
New Year, New Rules For Employers Doing Business in California
This year the California Legislature added over a dozen new employment laws, many of which take effect on January 1, 2016. Some of these laws impose new prohibitions on employers, while others provide positive benefits such as safe harbors, cure provisions, and employer incentives for reclassification of certain independent contractors. This update highlights key provisions in some of the new laws taking effect January 1, 2016. Links to the statutes are provided.
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Second Circuit Holds That Facebook “Like” May Be Concerted Activity Under Section 7 of the NLRA
The Second Circuit recently released a summary order in Three D, LLC v. NLRB affirming the National Labor Relations Board’s (the Board) ruling that a Facebook “like” can be construed as concerted activity under Section 7 of the National Labor Relations Act (the Act).
Continue Reading Second Circuit Holds That Facebook “Like” May Be Concerted Activity Under Section 7 of the NLRA
60-Day Public Comment Period Commences On Proposed FLSA Overtime Exemption Rule Changes
On Monday, July 6, 2015, in response to a March 2014 executive order signed by President Obama, the Department of Labor (“Department”) published a Notice of Proposed Rulemaking (“NPRM”) that will more than double the minimum salary necessary for a worker to be classified as “exempt” from the Fair Labor Standards Act (“FLSA”) overtime regulations. It is estimated that over 5 million, currently exempt, salaried employees will be affected by the increased salary threshold.
Continue Reading 60-Day Public Comment Period Commences On Proposed FLSA Overtime Exemption Rule Changes
U.S. Supreme Court Holds Agency Interpretations Are Not Subject To Notice-and-Comment Rulemaking Requirement
In 2004, the DOL revamped its regulations regarding the Fair Labor Standards Act (FLSA) administrative exemption. In 2006, the Bush DOL issued an opinion letter finding that mortgage loan officers qualified for the administrative exemption. In 2010, the Obama DOL withdrew the 2006 opinion letter and issued an Administrator’s Interpretation finding that mortgage loan officers did not qualify for the administration exemption. The Mortgage Bankers Association’s (MBA) challenged the 2010 interpretation arguing that it was invalid under Paralyzed Veterans of America v. D.C. Arena L.P., 117 F.3d 579 (1997) because it significantly altered the DOL’s 2006 opinion letter and it was issued without employing the notice-and-comment procedures required by the Administrative Procedures Act (APA). The district court rejected the argument, finding that the MBA had not demonstrated substantial and justifiable reliance on a well-established agency interpretation. The D.C. Circuit reversed, finding that reliance is but one factor courts must consider in assessing whether an agency interpretation qualifies as definitive.
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California Makes Anti-Bullying Training A Component Of Mandatory Harassment Training
California employers with more than 50 employees must include “abusive conduct” prevention training in their mandatory harassment prevention training. Assembly Bill No. 2053 expanded the scope of training required by Government Code Section 12950.1, which requires employers with 50 or more employees to provide at least two hours of harassment prevention training to supervisory employees for every two years, to also require “abusive conduct” prevention training.
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UPDATE: SCOTUS Denies Petition For Cert In Iskanian
On June 24, 2014, the California Supreme Court issued a controversial decision in Iskanian v. CLS Transportation Los Angeles, LLC. While the Court in Iskanian confirmed that an express class action waiver in an employment arbitration agreement is enforceable under California law, it also held that an arbitration agreement provision barring arbitration of a workers’ representative Private Attorneys General Act (PAGA) claim is invalid as a matter of California public policy. Under PAGA, employees can sue their employer for certain workplace violations on behalf of themselves, as well as other current or former employees, in “representative suits” similar to class actions.
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Is Your Criminal Screening Process Compliant?
An employer’s reluctance in hiring an applicant with a criminal history is understandable and sensible. Employers have an obligation to ensure a safe workplace, can be fined for failing to enact safeguards against workplace violence, and face liability for negligent hiring and retention of employees who commit violence in the workplace. Furthermore, a job applicant’s honesty and judgment are relevant factors to consider in assessing an applicant’s suitability for a job. For these reasons, employers frequently feel the need to inquire about an applicant’s criminal conviction history and use criminal background checks when making hiring decisions. However, a recent increase in laws banning, or significantly limiting, an employer’s ability to inquire about an applicant’s criminal history, requires that all employers examine their current criminal background check policies and practices to ensure compliance with applicable laws.
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