Category Archives: Compensation

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New York Seasonal and Holiday Employees

The holidays are upon us, NYC is bustling with tourists, and, with the typical surge in business this time of year, employers may be thinking about adding a few employees to their December and January schedules. This GT Alert provides important considerations with respect to those seasonal employment offers, including minimum wage, sexual harassment training, … Continue Reading

Reminder: Jan. 1, 2020, Effective Date Quickly Approaching for New Overtime Rules

The U.S. Department of Labor (DOL) final rule raising the annual minimum salary requirements for the Fair Labor Standards Act (FLSA) overtime exemptions for executive, administrative, and professional employees is effective Jan. 1, 2020. Employers who have not yet begun or completed their audit and review of their employee classifications should immediately start the process … Continue Reading

Department of Labor Announces Final Changes to Overtime Rules

The U.S. Department of Labor (DOL) on Sept. 24, 2019, announced a final rule raising the annual minimum salary requirements for the Fair Labor Standards Act (FLSA) overtime exemptions for executive, administrative, and professional employees. The final rule, effective Jan. 1, 2020, will significantly impact businesses. Experts predict the rule could result in the reclassification … Continue Reading

Chicago ‘Fair Workweek’ Ordinance Requires Employers to Provide Scheduling Notice to Covered Employees

On July 24, 2019, the city of Chicago enacted the Chicago Fair Workweek Ordinance, intended to “enact and enforce fair and equitable employment scheduling practices in the City of Chicago…” Most provisions of the Ordinance go into effect on July 1, 2020. The Ordinance covers employers primarily engaged in building services, health care, hotel, manufacturing, … Continue Reading

IRS Expands Retirement Plan Self-Correction Program

Our January 2019 GT Benefits and Compensation Alert addressed the unprecedented level of potential liability for compliance failures in 401(k) and other retirement plans and the importance of performing a plan compliance review and correcting plan document or operational failures before an IRS auditor knocks on the door. Doing nothing and playing the audit lottery … Continue Reading

Court of Appeals Upholds DOL’s Interpretation of NY’s Minimum Wage Order as Applied to Live-In Home Health Aides

On March 26, 2019, in a 5-2 ruling, the Court of Appeals ruled in favor of providers in a critical decision affecting home health care. Andryeyeva v. N.Y. Health Care, Inc. and Moreno v. Future Care Health Servs. et al. was a joint appeal in a case that threatened to eviscerate an important economic constraint … Continue Reading

Department of Labor Proposes Changes to Overtime Rules

The U.S. Department of Labor (DOL) on March 7, 2019, issued a new proposed rule raising the annual minimum salary requirements for the Fair Labor Standards Act (FLSA) overtime exemptions for executive, administrative, and professional employees. Under the new rule, the salary level for these “white collar” exemptions will increase from $23,660 per year ($455 per week) … Continue Reading

2018 Year in Review: California L&E

There are myriad special rules for employers operating in California, and even more were signed into law last term. 2018 was Jerry Brown’s last year of his second “two-term” round as governor. Both legislatively and judicially, 2018 was a busy year, with the legislature sending more than 1,000 bills to the governor. This GT Alert … Continue Reading

New Jersey Federal Court Declares State’s New Equal Pay Act Does Not Apply Retroactively – Will State Courts Agree?

On Jan. 15, 2019, U.S. District Judge William J. Martini ruled that New Jersey’s newly minted Diane B. Allen Equal Pay Act (NJEPA), enacted April 24, 2018, and by its terms effective July 1, 2018, “is not retroactively applicable to conduct occurring prior to its effective date.” Perrotto v. Morgan Advanced Materials, PLC. While Judge … Continue Reading

New Year’s Resolution: Prepare Yourself for an IRS or DOL Plan Audit

How confident are you that your company’s retirement plans are being run in accordance with all legal requirements under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC)? Are you comfortable with the integrity of the annual representations made to your plan auditor that key benefit-plan controls are in place to … Continue Reading

New Patient-Brokering Prohibitions Affect Treatment Facilities and Laboratories

Congress passed the Eliminating Kickbacks in Recovery Act (the Act) in 2018 to prevent “patient brokering” in treatment for substance abuse disorders. The Act imposes criminal penalties against anyone who knowingly and willfully “solicits or receives any remuneration . . . in return for referring a patient or patronage to a recovery home, clinical treatment … Continue Reading

California Clarifies How Employers Can Use Salary History Information

On July 18, 2018, Governor Brown signed AB 2282, the Fair Pay Act Bill, into law to clarify Labor Code sections 432.3 and 1197.5 (also known as the California Equal Pay Act), which collectively dictate how employers can use salary history information of employees and applicants for employment. Existing law prohibits California employers from asking … Continue Reading

Massachusetts to Phase-In Minimum Wage Hike, Eliminate Sunday Premium Pay, and Provide Paid Family and Medical Leave

On June 28, 2018, Massachusetts Governor Baker signed into law “An Act Relative to Minimum Wage, Paid Family Medical Leave, and the Sales Tax Holiday.” The new law will gradually increase the minimum wage over the next five years; phase-out premium Sunday pay for retail employees; and create a paid family and medical leave program … Continue Reading

Ninth Circuit: Employers May Not Consider Salary History in Deciding to Pay Men and Woman Differently

The day before Equal Pay Day, the U.S. Court of Appeals for the Ninth Circuit, sitting en banc, ruled that employers defending claims under the Equal Pay Act cannot rely on workers’ past salaries in any respect in trying to justify pay disparities between women and men. Aileen Rizo v. Jim Yovino, 16-15372, 2018 WL … Continue Reading

PA Superior Court: For Some Employees, PA Law Requires More Overtime Compensation

Employers with operations in Pennsylvania should beware that a recent Pennsylvania Superior Court opinion confirmed what federal courts in Pennsylvania previously predicted:  Pennsylvania law entitles certain employees to more overtime pay than federal law. On Dec. 22, 2017, Judge Jeffery Moulton ruled that the Pennsylvania Minimum Wage Act (PMWA) entitles a nonexempt, salaried employee to … Continue Reading

New York Paid Family Leave Law Becomes Effective Jan. 1, 2018

The New York Paid Family Leave law (NYPFL), which becomes effective Jan. 1, 2018, mandates that private employers provide coverage for certain types of employee leave. The benefits will be administered and payments made by the employer’s disability carrier (or by the employer if self-insured), in the same manner as disability benefits. Funding of the … Continue Reading

New York State Department of Labor Proposes Expansion to Call-In Regulations as New York City Council Weighs Passing Right to Flex-Time Law

This year, New York City and New York State advanced a series of legislative and regulatory proposals affecting New York’s businesses and their employees. Following four public hearings across the state, the New York State Department of Labor (DOL) proposed regulations that would expand the current “call-in” regulations by requiring two weeks’ advance notice of … Continue Reading

“Nothing so Exhilarating as Being Shot at Without Result”—California Pay Day Statements and Accrued Vacation

What does Winston Churchill have to do with California wage and hour requirements? Well, the “shot” at employers in Soto v. Motel 6 Operating L.P. at the California Court of Appeal was whether, because California vacation pay cannot be forfeited and must be paid out at termination, it therefore follows that the value of the … Continue Reading

Massachusetts Enacts Comprehensive Pay Equity Law

On Aug. 1, 2016, Massachusetts Governor Baker signed into law the “Act to Establish Pay Equity.” The new law is intended to address the gender wage gap by strengthening the pay disparity prohibitions under existing law. The Pay Equity Act also provides employers the opportunity to assert an affirmative defense to wage claims based on … Continue Reading

Recent Florida Supreme Court Decisions on Workers’ Compensation Could Lead to Higher Premiums

In two long-awaited decisions, the Florida Supreme Court declared several provisions of the state’s workers’ compensation statutes unconstitutional, weakening legislative reforms approved in 1994 and 2003 intended to curb the system’s growing costs and higher premiums for employers and businesses. The rulings, in Castellanos v. Next Door Company and Westphal v. City of St. Petersburg … Continue Reading

The New Overtime Regulations and Their Impact on the Salary Basis Test

As we previously discussed here, the United States Department of Labor (DOL) recently changed the Fair Labor Standards Act’s (FLSA’s or the Act’s) Salary Level and Salary Basis tests for the white collar exemptions to the Act’s overtime requirement.  Effective Dec. 1, 2016, employees must be paid at least $47,476 annually and $913 per week … Continue Reading

Trial by Formula Revisited: Tyson Foods, Inc. v. Bouaphakeo and the Future of Wage & Hour Class Actions

Some important Supreme Court cases are hard to accurately capture in a sound bite, and this is one of them. In a narrow holding, the Supreme Court issued a 6-2 decision in Tyson Foods, Inc. v. Bouaphakeo, 577 U.S. ___ (2016), addressing class claims for overtime compensation certified under Federal Rule of Civil Procedure 23 … Continue Reading

2015 California Employment Law Legislative Update

At Greenberg Traurig, we live our motto “built for change” and apply it for the benefit of the businesses we serve. Our California Labor and Employment Practice appreciates that although California presents opportunity, it also presents an often unique set of employment risk propositions, and these risks are often just one set among a constellation … Continue Reading
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