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A relatively new form of insurance, employment practices liability insurance (EPLI) became popular in the 1990s after the 1991 Civil Rights Act amendments increased the frequency of discrimination claims in the workplace. EPLI typically covers defense costs, judgments and settlements of employment issues ranging from sexual harassment to wrongful termination. While many employers do not […]
Before they find themselves under a wage enforcement microscope, employers need to be aware of potential problems and misclassification errors when designating workers as independent contractors instead of standard employees. The U.S. Department of Labor has had the misclassification of workers squarely in its cross hairs for a while. In particular the designation of “independent […]
A car wash operator apparently had a clean record of complying with labor law, but because of a special California labor law, a California appellate court recently held that the car wash was liable for a previous owner’s Fair Labor Standards Act violations, resulting in a $120,000 judgment. The case, People ex rel. Harris v. […]
The number of Fair Labor Standards Act civil lawsuits filed in 2011 declined 7.2 percent, according to a recent report by the Administrative Office of the U.S. Courts. In all, 6,335 FLSA cases were commenced in district courts nationwide during the 12-month period ended Sept. 30, 2011, down from 6,825 during the same period in […]
Although the Supreme Court will soon decide whether pharmaceutical sales representatives (PSRs) may qualify for the Fair Labor Standards Act’s “outside sales” exemption from overtime pay, the 7th U.S. Circuit Court of Appeals ruled in early May that PSRs could be exempt from the FLSA under the law’s “administrative exemption” (Schaefer La-Rose v. Eli Lilly […]
The Administrative Exemption: it’s where the greatest number of employers go wrong and no surprise, says attorney Susan G. Fentin—it’s the broadest and most ambiguous exemption of them all. In yesterday’s Advisor, Fentin helped us understand the huge dollar risks in mistaken exemption decisions. Today, how to determine if your employees meet the tricky administrative […]
According to a recent study, uneven enforcement of the Fair Labor Standards Act — lax in some places and more stringent in others — leaves employers confused about the extent of their liability for wage and hour violations. The study, released by the Nelson A. Rockefeller Institute of Government, calls for more enforcement consistency to […]
In exemption misclassification cases, damages can be huge, says attorney Susan G. Fentin, and lawyers are lining up to bring suits against your organization. Fentin, who is a partner in the Springfield, MA offices of labor and employment firm of Skoler, Abbot & Presser, P.C., is Associate Editor of the Massachusetts Employment Law Letter. She […]
Whether an employee is exempt from the FLSA has been a turbulent topic this year, as both DOL and Congress have been issuing proposals and bills regarding exempt jobs. DOL has been involved with the status of pharmaceutical representatives, in-home caregivers and children working on farms. Although no changes have yet been made to the […]
Wal-Mart Stores, Inc. will pay almost $5.3 million in penalties, damages and back wages for overtime violations at stores nationwide, the U.S. Department of Labor said on May 1. According to the agency, 4,500 vision center managers (VCMs) and asset protection coordinators (APCs) at Wal-Mart Supercenters, Wal-Mart Discount Stores, Neighborhood Markets and Sam’s Club Warehouses were […]