Wage and Hour

Game-Changing Overtime Regulations Advance to OMB Ahead of Schedule, Final Rule Could Arrive as Early as April 2016

Gary Siniscalco and Stephanie LeePosted on March 24, 2016

The U.S. Department of Labor (DOL) sent its much anticipated final overtime regulations to the Office of Management and Budget (OMB) for review on March 14, 2016. Technically, this move came slightly ahead of schedule. OMB now has 90 days to review, which would put its “due date” in mid-June – ahead of the July regulatory agenda publication date we previously reported. However, as these overtime regulations are a top-line priority subject to intense political scrutiny, there is reason to believe OMB may not complete its review within the 90-day window.

Justice Scalia’s Employment Law Legacy

Kathryn Mantoan and Michael DisotellPosted on February 24, 2016

On February 13, 2016, Justice Antonin Scalia, the anchor of the Court’s conservative wing for nearly three decades, passed away. He leaves behind a distinguished legal career that involved experience in wide range of roles. After graduating from Harvard Law School, Justice Scalia entered private practice and then became a law professor at the University of Virginia. He served in the Nixon and Ford administrations, eventually becoming Assistant Attorney General. Scalia then began his judicial ascension when President Ronald Reagan nominated him to the United States Court of Appeals for the District of Columbia Circuit. Soon thereafter, Reagan nominated Scalia to the Supreme Court to replace Justice William Rehnquist, whom Reagan had named to the Chief Justice position. Scalia was unanimously confirmed.

DOL’s Aggressive Regulatory Agenda Continues

Editorial BoardPosted on December 9, 2015

The U.S. Department of Labor’s (“DOL”) role as a strong player in the Obama Administration’s domestic agenda shows no signs of letting up. DOL is poised to finalize big changes in the federal contracting and wage and hour spaces. Employers should be ready to meet the compliance challenges associated with these new obligations.

Class Action Lawsuits: In Vogue? High Fashion Gets Hit with Wage and Hour Class Action Lawsuits over Unpaid Internship Programs

Pat GillettePosted on February 18, 2015

Sportswear-inspired designs, bold prints, and gingham aren’t the only things trending for Spring 2015 in the fashion world. Judging from a recent wave of lawsuits, wage and hour class actions are trending as well. Over the past few years, class action lawsuits over unpaid internships have been on the rise, with this most recent wave of filed lawsuits serving as a powerful reminder to employers that intern programs can’t simply be viewed as a way to recruit free labor.

Employees Snooze, Employers Lose: California Supreme Court Delivers Wake Up Call to Employers of On-Call Security Workers

Michael Weil, Kathryn Mantoan and Annabelle ChanPosted on January 20, 2015

In Mendiola v. CPS Security Solutions, Inc., issued on January 8, 2015, the California Supreme Court ruled that security guards are entitled to compensation for all on-call hours spent at their assigned worksites, even when they are engaged in certain personal activities or sleep.

Employers Finally Get a Break—Court Reverses $90 Million Verdict and Holds That Employers Are Not Required to Relieve Employees of All Duty During Rest Periods

Erin Connell and Mark ThompsonPosted on January 12, 2015

On December 31, 2014, the Court of Appeal for the Second District of California held in an unpublished opinion that employers are not required to relieve employees of all duty during rest periods mandated by California state law. In so holding, the court in Augustus v. ABM Sec. Servs., Inc., No. B243788, 2014 WL 7463154 (Cal. Ct. App. Dec. 31, 2014), reversed the trial court’s award of approximately $90 million dollars in statutory damages, interest, penalties, and attorneys’ fees to the employees.

Ending in a Draw: In Iskanian v. CLS Transportation, the California Supreme Court Upholds Class Action Waivers in Arbitration Agreements, But Also Makes PAGA Claims Unwaivable

Alexandra Stathopoulos and Andrew LivingstonPosted on June 24, 2014

Ever since the U.S. Supreme Court issued its decision in AT&T Mobility LLC v. Concepcion, California employers hoped this day would come. In a predictable result, the California Supreme Court today acknowledged that class action waivers in employment arbitration agreements are enforceable under the Federal Arbitration Act (FAA). In so doing, the Court overruled its 2007 decision in Gentry v. Superior Court which effectively had barred class action waivers for wage and hour cases. But the Court’s 6-1 plurality decision also bolstered an alternate method for bringing Labor Code claims in court by declaring that actions brought under the Private Attorneys General Act (Labor Code § 2968 et seq.) are not waivable by private agreement and thus not subject to compelled arbitration. READ MORE →

Try, Try Again: The California Supreme Court Sends “Fundamentally Flawed” Duran Case Back to the Trial Court

Julie TottenPosted on May 29, 2014

Employment class action defendants in California who were hoping for an unequivocal statement that statistical sampling has no place in class actions are likely to be disappointed by today’s ruling in Duran v. U.S. Bank, N.A. The California Supreme Court cautiously left all avenues to certification open, stating that a “[s]tatistical sampling may provide an appropriate means of proving liability and damages in some wage and hour class actions.” (Emphasis added.) But despair not! The bulk of the opinion agreed with the court of appeal in finding the trial court’s methods “profoundly flawed,” recognized the “thorny” issues of proof that arise in misclassification cases, and reaffirmed a court’s obligation to consider the manageability of individual issues in certifying a class action. The Court’s instructions to lower courts and litigants to determine – as an integral part of class certification – whether the case can be manageably tried are likely to aid employers in certification battles to come. READ MORE →

Unpaid, but Not Unprotected: New York City Extends Human Rights Law to Protect Interns

Mike DelikatPosted on May 6, 2014

As reported by us in recent blog articles (Do as I Say, Not as I Do: Differences in Duties Means No Commonality, No Class Certification for Unpaid Interns and The High Cost of Hiring Unpaid Interns), employment issues surrounding unpaid interns are on the rise. While the bulk of the debate has centered on wage-and-hour issues, some have argued that interns should be afforded the same protections from workplace discrimination and harassment as employees. New York City has now adopted that view. READ MORE →

Paid in Singles for a Shot at the Big Leagues: Former Minor Leaguers Sue MLB for Wage-and-Hour Violations

Rachel Muoio and Tracy ScheidtmannPosted on February 25, 2014

Spring training is just around the corner and major leaguers have already reported to their first workout. Meanwhile, an interesting development–three former minor leaguers have filed a lawsuit against Major League Baseball, Bud Selig, and three MLB teams, claiming that the MLB has failed to pay overtime and minimum wages in violation of the FLSA and various state labor laws. According to the plaintiffs, the MLB “has a long, infamous history of labor exploitation dating to its inception” by hoarding players, depressing salaries, and preventing unionization of the minor leagues. See Complaint, Senne v. MLB, No. 3:14-cv-00608-JCS (N.D. Cal. Feb. 7, 2014), ECF No. 1. The case is presently before Magistrate Judge Joseph C. Spero. READ MORE →

Employment Law and Litigation