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Revisiting the Fluctuating Workweek Method: CT Supreme Court Says No for Retail Employees

It never seems to fail; I go on vacation and the Connecticut Supreme Court issues one of the few employment law decisions it issues every year during that week. Fortunately for all of us, it concerns the fluctuating work week method of overtime computation which most employers in the state consciously either avoid or try not to understand.  (In very basic terms, the formula calculates a pay rate based on the number of hours an employee actually works in a particular weeks.) I’ve previously discussed the “perils of trying to rely on a fluctuating work week.” As recently as 2012, I said that “while it can provide some benefit for employers, it must be done properly and must not be raised after the fact.”  And I noted way back in 2008 that employers have to jump through a variety of hoops to make sure they are compliant. Add to this cautionary tale the latest Connecticut Supreme Court case of Williams v. General Nutrition Centers, Inc.  The...

No Longer a Modest Proposal – A Limited “Amnesty” for Wage/Hour Violations Coming

Three years ago, I floated the idea that perhaps an agency could come up with a modest “amnesty” program that would give employers a chance to get into compliance with FLSA laws, without facing the draconian consequences such an admission might entail. Now, late yesterday, the United States Department of Labor announced its own pilot program doing exactly this.  It’s being called the “PAID” program (Payroll Audit Independent Determination), and is designed to expedite “resolution of inadvertent overtime and minimum wage violations under the FLSA.” According to a press release: Employees will receive 100 percent of the back wages paid, without having to pay any litigation expenses, attorneys’ fees, or other costs that may be applicable to private actions. The PAID program facilitates resolution of potential violations, without litigation, and ensures employees promptly receive the wages they are owed.  Under this program, the Wage...

Shoveling Out Your Nor’Easter Employment Law Protocols

You have your bread. And milk.  Presumably eggs too.  (Anyone making French Toast this morning?) But do you know the employment law rules that apply for winter storms and classic nor’easters like we have today? I’ve written about it plenty before, but here are three issues you may not have thought about recently. Reporting Time or Minimum Daily Earnings Guaranteed:  Connecticut has a “reporting time” obligation (as do several of our neighboring states). It is contained in various regulations and applies to certain industries like the “mercantile trade”. You should already be aware of this law, but it has particular application in storm situations where people may not work full shifts. For example, in Conn. Regs. 31-62-D2(d) for stores, an employer who requests an employee to report to duty shall compensate that employee for a minimum of 4 hours regardless of whether any actual work ends up getting assigned. So if you bring you...

FLSA Wage & Hour Claims Can Be Subject to Arbitration

There is news in the employment law world beyond sexual harassment.  Arbitration clauses to be exact. Yesterday, the Second Circuit issued a small, but important decision for employers that will continue to limit FLSA wage & hour claims. The court ruled that an employee’s FLSA claims in court were barred by the arbitration clause contained in his employment agreement.  While it isn’t the first time, it’s clear logic will be tough to ignore. (The case, Rodriguez-Depena v. Parts Authority, Inc. et al can be downloaded here.) For the court, it was not even a close call. The court ruled that the Supreme Court’s pronouncement years ago that age discrimination claims were barred by an arbitration clause controlled. The court also looked at whether its decision in the Cheeks v. Freeport Pancake House, Inc. – which required oversight of settlements of FLSA claims — precluded arbitration. The court said it did not. The rationale of Cheeks, h...

Wage & Hour Claims Still Going Strong and Yet…

Back in 2011, I wondered aloud: Might the impact of new arbitration decisions from the U.S. Supreme Court bring about the end to big wage & hour class actions? At the time, I said it would be premature. Seven years later – what’s changed? Well, as it turns out, wage & hour class actions are not dead. Indeed, based on some statistics, they’re as costly as ever. Earlier this year, the Workplace Class Action Litigation report noted that just the top  ten class action settlements totalled over $2.72  billion in 2017 . I’d say the class action is still very much alive and well. Yet there are still signs on the horizon that employers may be able to fight back a bit on these claims. Late last month, the Ninth Circuit shot down a potential class action against Uber, on the grounds that the arbitration provision barred class actions.   It’s a significant victory for the company and highlights a way for companies to push back against the ...

The Best Webinar on Employment Law (That Employment Bloggers Could Put Together)

Now that Thanksgiving is in the past, it’s time to look forward to the future. Well, not before getting a recap of everything that transpired in employment law in the last year. Or at least everything that we can fit in an hour long seminar. The webinar that broke attendance records last year is back again on December 4, 2018 at noon ET. This year, five employment law bloggers are presenting the “Best-Ever Year-End Employment Law Review that Five Employment Law Bloggers Have Ever Presented” webinar.  Registration is just $25 and it’s eligible for CLE/SHRM/HRCI credit. All that is needed is to sign up here.  The presenters this year are: Robin Shea, Constangy, Brooks, Smith & Prophete Kate Bischoff, tHRive Law & Consulting Jon Hyman, Meyers Roman Eric Meyer, FisherBroyles Jeff Nowak, Franczek Radelet Daniel Schwartz, Shipman & Goodwin Among the topics that you can surely expect to hear about: #MeToo, LGBT discrim...

General Assembly Passes New Minimum Wage; Governor’s Approval Expected

Earlier this morning (Friday, May 17th), the state Senate approved of a measure that will increase the state’s minimum wage to $15 per hour by 2023. House Bill 5004 (as amended) can be downloaded here. The bill had previously passed the House and now moves to the Governor’s office where he is expected to sign it. There are several key components to the bill that are important for employers. YEARLY INCREASES TO MINIMUM WAGE The bill increases the minimum wage from the current level of $10.10 per hour as follows: $11.00 on October 1, 2019 $12.00 on September 1, 2020 $13.00 on August 1, 2021 $14.00 on July 1, 2022 $15.00 on June 1, 2023 But perhaps even more importantly, beginning January 1, 2024, it indexes future annual minimum wage changes to the federal employment cost index for “wages and salaries for all civilian workers”.  (As of the March 2019 ECI, the compensation costs increased 2.8 percent, by way of example) TRAINING WAGES Starting October 1, 2019, ...

Vetoed Restaurant Bill on “Dual Duties” Gets Revived With Compromises

Six months after a little-noticed bill passed unanimously by the General Assembly (and was then vetoed by Governor Lamont), a new compromise measure passed yesterday in a special session.  For a full article, check out CT Mirror’s coverage here or CTNewsJunkie here. The bill uses some of the same concepts that had been previously discussed, particularly at a public hearing in October. But the bill tries to address the issue in a more nuanced way. Perhaps the biggest concession that was made is that existing class actions on wage and hour laws challenging the so-called “dual duties” regulation may proceed though with limits. You can read the bill here. Governor Lamont has indicated that he will sign the measure.  Here are the other key provisions: The biggest takeaway is that the bill requires the Department of Labor to revisit a 1950 regulation that has been interpreted by some as requiring time that a server spends on “non-service duties...