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A Connecticut-based fiduciary investment adviser agreed in a settlement to pay about $1.3 million to 13 pension plans to resolve alleged ERISA violations related to mutual fund fees the firm received. USI Advisors Inc. made investments in mutual funds on behalf of ERISA-covered defined benefit plan clients and received 12b-1 fees from those funds, according […]
A sweeping new U.S. Department of Labor enforcement initiative targeting California’s apparel industry may highlight wage and hour compliance issues for retailers and manufacturers. The companies that make, ship, market and sell clothing have long faced scrutiny over labor practices but industry proponents argue that they have made great strides. DOL appears to disagree, launching […]
Unpaid internships can be mutually beneficial for students and employers: students receive invaluable workplace experience and employers benefit from the opportunity to begin training the next generation of talent. However, you must be aware of the distinction between paid and unpaid internships. Internships in the for-profit, private sector will most often be viewed as employment […]
Unpaid internships are viewed universally as great opportunities for students to acquire valuable job skills and experience. In fact, experiential learning opportunities provide students with a leg-up on those competing for jobs right out of college. However, warns Evelyn Gentry, Faegre Baker Daniels LLP, there are downsides for employers that use unpaid interns, the most […]
However, warns Evelyn Gentry, Faegre Baker Daniels LLP, there are downsides for employers that use unpaid interns, the most notable being potential violations of the FLSA. Misclassifying employees as unpaid interns, and thereby denying them federal minimum wage and overtime wages can result in costly litigation, civil fines, or both. Furthermore, employers who willfully violate […]
In a blow to a U.S. Department of Labor position, a divided Supreme Court ruled today that pharmaceutical sales representatives qualify for the “outside sales” exemption of the Fair Labor Standards Act. In an opinion delivered by Justice Samuel Alito, the Court found that under the most reasonable interpretation of DOL regulations, PSRs qualified as […]
Summer’s here, and coincidentally, it’s a hot time for legal and regulatory developments affecting human resources and benefits professionals! Many companies trying to make ends meet also should expect new laws and regulations in these five areas. The perils of not heeding leave and disability law. Employers struggle with determining what a “reasonable accommodation” is under […]
Yesterday, we looked at some of the proposed changes to the federal Family and Medical Leave Act (FMLA) in areas relating to military leave. Today, a look at the other proposed changes, courtesy of Mark Schickman and Cathleen Yonahara, both attorneys at Freeland Cooper & Foreman LLP in San Francisco.
Misclassification: DOL and IRS Declare War Misclassification—calling individuals “independent contractors” or “volunteers” who properly should be employees—is a burgeoning legal battleground for employers. A recent 30-million-dollar suit on behalf of newspaper carriers is a good example of the stakes involved, says attorney Christine V. Walters. Unauthorized Overtime–Must Be Paid Even if Forbidden Many employers have […]
The U.S. Department of Labor has collected its rules, guidance and other materials on the Mental Health Parity and Addiction Equity Act into a new MHPAEA Web page. The materials on this page include a new set of frequently asked questions on “understanding implementation” of MHPAEA, which when enacted in 2008 substantially beefed up HIPAA’s […]