Co-authored by Christopher Truxler and Coby Turner
Seyfarth Synopsis: Earlier this month, a California federal court dismissed the misclassification claims of 7-Eleven franchisees on the pleadings, finding they did not and could not plead facts sufficient to show that they were employees of their franchisor.
All is well with one of America’s most beloved convenience stores. In October 2017, four
Continue Reading Oh Thank Heaven, Franchisees Not Employees of 7-Eleven!
Co-authored by Alex Passantino and Kevin Young
On Tuesday, the Wage & Hour Division announced a new program for resolving violations of the FLSA without the need for litigation. The Payroll Audit Independent Determination program—or “PAID”—is intended to facilitate the efficient resolution of overtime and minimum wage claims under the FLSA. The program will be conducted for a six-month
Continue Reading Tired of Waiting for FLSA Litigation? Meet PAID, WHD’s Pilot Program For Proactive Employers.
Co-authored by Kevin Young and Kara Goodwin
Even as FLSA litigation has surged to historic highs, it is rare to see a nefarious violation of the Act by a manager or supervisor. Far more prevalent, it seems, are stories of managers who, while intending to afford employees freedom and flexibility, instead trip over one of many hurdles scattered across the
Continue Reading The Road to FLSA Litigation is Often Paved With Good Intentions
Authored by Robert Whitman
Seyfarth Synopsis: The Second Circuit has upheld summary judgment against magazine interns seeking payment as “employees” under the FLSA.
In an end-of-semester decision that may represent the final grade for unpaid interns seeking minimum wage and overtime pay under the FLSA, the Second Circuit has firmly rejected claims by Hearst magazine interns challenging their unpaid status.
Continue Reading Interns Flunk the Class
Co-authored by Cheryl Luce, Kyla Miller, and Noah Finkel
Seyfarth Synopsis: A recent decision highlights why the FLSA is not always the remedial statute created to protect low-income workers by holding that four commission-based sales representatives, each earning six figures, were not exempt from the overtime requirements because they were not paid on a salary basis.
Authored By Alex Passantino
As we’ve reported previously, among the items the Department of Labor identified earlier this year in its Regulatory Agenda was a Notice of Proposed Rulemaking (NPRM) seeking to rescind portions of a 2011 rule that restricted tip pooling for employers who do not use the tip credit to satisfy their minimum wage obligations. On October
Continue Reading Tip Credit Rule to White House
Co-authored by Brett Bartlett, Alex Passantino, and Kevin Young
Seyfarth Synopsis: On Thursday afternoon, a federal judge in Texas issued an order officially invalidating the U.S. Department of Labor’s 2016 overtime rule, which would have more than doubled the minimum salary level for most overtime-exempt employees. While the long awaited ruling brings a measure of closure for employers,
Continue Reading Obama Overtime Rule Invalidated by Federal Court in Texas
Co-authored by Steve Shardonofsky and Kevin A. Fritz
Seyfarth Synopsis: As employers begin to pick up the pieces following Hurricane Harvey, management will likely encounter questions about employee pay, benefits, and leaves of absence during and after this disaster, and may also have questions about how to help their workers get by during this difficult time. After making sure your
Continue Reading Practical Advice for Weathering Pay and Leave Issues Following Hurricane Harvey
Authored by Cheryl Luce
Employers often grapple with what to do when their policies prohibit off-duty work, like working on mobile devices after hours, that employees don’t follow. Even if it has a policy prohibiting off-duty work, if the employer knows (or should know) an employees is working, the employer must compensate the employee for the off-duty work. The same
Continue Reading Seventh Circuit Sends Police Officers’ Off-Duty BlackBerry Claims to Spam Folder
Authored by Alex Passantino
Seyfarth Synopsis: The Wage & Hour Division announced its regulatory plan for the next year and it is less ambitious than some may have anticipated. A request for information on the overtime rule and a proposal to rescind a limited tip credit regulation are all that is on the immediate horizon for employers.
Each spring and
Continue Reading What’s on the Agenda? Tips and OT