Wage and Hour Defense Blog

 On June 16, the Department of Labor issued an “Administrator’s Interpretation” addressing the compensability of time spent by employees changing clothes and equipment before and after work (commonly referred to as “donning and doffing). The Interpretation reversed opinion letters on the subject  issued by the Bush administration in 2002 and 2007, and lowered the standard for employees to seek compensation for such activities.

The Interpretation addressed two issues. First, the advisory notes that Section 203(o) of the Fair Labor Standards Act (FLSA), which ...

vigilant employers will not merely accept the prospective intern's agreement to do volunteer work, but will apply the required legal analysis. Despite the individual's offer to work for free, the Department of Labor may reclassify the individual as an employee, and require the employer to pay back wages for all hours worked, including overtime.

A faculty comprised of Defense counsel and Plaintiffs' counsel presented strategic insights to those who gathered at the American Conference Institute's 9th National Forum on Wage Hour Claims and Class Actions. I had the pleasure of moderating a judicial panel comprised of six federal jurists who offered practitioners key insights from their experience in presiding over cases alleging violation of the Fair Labor Standards Act.

Already besieged by wage-hour lawsuits, employers with operations in California may see more of these cases, or may be brought into wage-hour litigation where they might not have been before, as a result of a new decision by the California Supreme Court expanding the definition of "employer." The decision creates greater exposure to litigation for those companies that use the services of independent contractors, temporary agencies or other similar entities with whom the employer has a close relationship.

The Wage and Hour Division issued new updated regulations for non-agricultural industries on May 19, 2010.  These laws strengthened the restrictions on minors under age 18 working in dangerous occupations or around certain equipment or machinery in the workplace.

A practical chart from DOL showing the differences in the old and new regulations can be found here.

Recently, a client asked us to develop a "user friendly" comparison of the FLSA and California "white collar" exemptions. While nothing is really "user friendly" when it comes to California wage and hour law, we developed the chart below to provide some basic guidance for our client and wish to share it here.

There is a substantial difference between the definition of "hours worked" adopted by the California Division of Labor Standards Enforcement ("DLSE") and that used by the Department of Labor ("DOL") under the FLSA. Under California law, it is generally only necessary that the worker be subject to the "control of the employer" or "all the time the employee is suffered or permitted to work" in order to be entitled to pay. These two phrases operate independently of each other, so that if time falls into either category, it must be counted as hours worked.

In the current economic downturn, competition for desirable positions of employment is keen. Ambitious job seekers may approach an employer asking for an unpaid position to gain experience, skills and contacts. While such a relationship may prove mutually advantageous, employers should remember that the DOL recently emphasized the FLSA's compensation requirements apply to employees who are required or allowed to work. The terms "to suffer or permit to work" have been construed expansively in order to effectuate the broad remedial purposes of the Act.

The Pension Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (the "Act"), significantly impacting the delivery of health care, also amends the Fair Labor Standards Act ("FLSA"). The FLSA amendments impose certain employer responsibilities in providing health care benefits, confer whistleblower protections and authorize the U.S. Department of Labor ("DOL") to undertake increased enforcement related to health care. Employers have new requirements to learn, and to implement, under the FLSA, irrespective of their size or the number of employees in their workforce

On April 1, 2010, Secretary of Labor Hilda Solis announced a new campaign entitled "We Can Help," aimed at assisting low income workers in reporting wage and hour violations to the Department of Labor.    The campaign consists of a new website and 1-800 number, combined with bilingual public service announcements by celebrities such as Esai Morales and Jimmy Smits.

The campaign is primarily targeted at employees in the construction, food service, janitorial, hospitality and health care fields.  Employers in these targeted industries should be congnizant of these stepped up ...