On June 19, 2018, District of Columbia residents voted to pass (by a 55.14% to 44.86% margin) Initiative 77, providing for a single minimum wage for all employees, including tipped workers.

The restaurant industry led the opposition to the Initiative noting that the additional labor costs of the minimum wage will need to be sourced by one of the following: (1) through job cuts; (2) by the employer’s overhead; or (3) by passing the costs to the consumer through an increase in the costs of goods and services, which can decrease business and/or decrease the likelihood of customers tipping.
Continue Reading Minimum Wage Inches Closer to Reality for Tipped Workers in the District of Columbia

On Tuesday, March 6, 2018, the U.S. Department of Labor (“DOL”) announced its launch of the Payroll Audit Independent Determination (PAID) Program (“PAID” or the “Program”) – aimed at increasing employers’ FLSA compliance and timely payment of back wages to employees. The Program, which will start with a six-month pilot period prior to evaluation and finalization, is explained in detail below.

What is the PAID Program’s Goal?

The Program’s goal is to increase compliance with the FLSA’s overtime and minimum wage requirements by providing employers the opportunity to self-audit and report inadvertent non-compliance without fear of litigation or penalties. The Program also hopes to expedite payment of back pay to affected employees and to cut down on litigation costs to employers, employees, and taxpayers.
Continue Reading Department of Labor Announces New Payroll Audit Pilot Program

Beginning January 1, 2018, the new California minimum wage rate for employers with 26 or more employees will be $11.00 per hour and the new California minimum wage rate for employers with 25 or fewer employees will be $10.50 per hour.

As we previously reported, effective January 1, 2017, the California state minimum wage began increasing yearly through January 1, 2022 for employers employing 26 or more employees. Effective January 1, 2018, the California state minimum wage will begin increasing yearly through January 1, 2023 for employers employing 25 or fewer employees.
Continue Reading New Year, New Minimum Wage Rates in California

Effective March 7, 2017, employers who pay wages via direct deposit and/or payroll debit card will need to comply with more stringent requirements.  The New York State Department of Labor (the “NYSDOL”) recently issued final regulations governing the methods that New York employers may use to pay most “non-exempt” employees.  The regulations impose a number of new requirements on employers who remit wages via direct deposit and payroll debit card, including new notice and consent requirements that employers must comply with prior to utilizing such payment methods.
Continue Reading New York State Department of Labor Issues Final Wage Regulations Imposing New Notice and Consent Requirements on Direct Deposit and Debit Card Wage Payments

The cities of Los Angeles and San Diego recently approved minimum wage and sick leave ordinances that will apply to all employees who work within those cities’ geographical limits.  Employers with employees who work in these cities will need to comply with those new ordinances, as well as the California state law requirements that already exist.
Continue Reading Enactment of Los Angeles and San Diego Minimum Wage and Paid Sick Leave Ordinances Requires Employers to Reassess Their Policies

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