Tag: Wage and Hour Law

California’s Estrada Decision and Impact on Employers and PAGA Claims

Following Estrada v. Royalty Carpet Mills, Inc., the California Supreme Court’s employee-friendly Private Attorneys General Act (PAGA) ruling earlier this year, employers must remain more diligent than ever to prevent and mitigate costly wage and hour litigation. Estrada eliminated one of employers’ central tools to curb sprawling PAGA claims: requesting dismissal based on the court’s […]

Wage and Hour Law: Designed for the 1920s, Applied in the 21st Century

The fundamental premise of the Fair Labor Standards Act (FLSA) is that all employees are covered by its base requirements. This includes being paid minimum wage for every hour worked and time and one-half for all overtime. The FLSA is a statute of inclusion, which means all employees are covered unless they fit within specific, […]

Arizona and Flagstaff Minimum Wage Rises Again on January 1, 2023

On January 1, 2022, Arizona’s minimum wage increased to $12.80 per hour, making it the sixth highest among the 50 states (according to the minimum wages posted on laborlawcenter.com). While we continue to see an increase in state and local minimum wage statutes, according to minimum-wage.org, 21 states either had no minimum wage laws or had adopted […]

misclassification

Determining Independent Contractors: Sometimes the Government Loses

There’s been an ongoing battle between employers and the U.S. Department of Labor (DOL) over when someone is considered an independent contractor versus an employee. A recent decision from the U.S. 8th Circuit Court of Appeals to reverse summary judgment (dismissal without trial) in favor of the DOL gives employers some guidance and reason for […]

Restaurant’s Mandatory Service Charge Wasn’t a Tip

In the current battle to hire and retain good workers, employers have developed creative ways to balance employees’ increased compensation expectations against the costs of running a business. In addition, restaurants using the tip credit have the extra administrative difficulties of making sure their tipped employees are being paid enough in tips to meet the […]

It’s Now Easier for Alleged Joint Employers to Compel Arbitration

Nearly four years ago, the U.S. Supreme Court held employers can enforce arbitration agreements that waive an employee’s right to join a class action lawsuit. Since then, many companies have avoided what would be costly class action lawsuits, particularly in the wage and hour context, by requiring individual arbitration with employees. Despite this, there was […]

What to Do When DOL Comes Knocking at Your Door

The U.S. Department of Labor (DOL) performs wage and hour audits of employers by selecting them at random, or because they are in targeted industries (usually low-wage), or as a result of a complaint from an employee or former employee. The investigations have increased significantly over the past few years and can result in orders […]

DOL’s proposed rules to swell ranks of overtime-eligible employees

The U.S. Department of Labor’s (DOL) release of new proposed rules regulating who is eligible for overtime pay has employers scrambling to determine how many of their workers will need to be reclassified when new regulations take effect. Currently, the salary threshold for an employee to be exempt from the Fair Labor Standards Act (FLSA) […]