Wage and Hour Defense Blog

Wage and Hour Defense Blog

Tag Archives: minimum wage

California Court of Appeal Requires Separate Compensation for Time Spent During Rest Periods to Hourly Employees Paid on a Commission-Only Basis

Kevin SullivanOn February 28, 2017, the California Court of Appeal issued its opinion in Vaquero v. Stoneledge Furniture, LLC. The opinion provides guidance to California employers who pay their hourly employees on a commission basis but do not pay separate compensation for time spent during rest periods.

In the case, the employer kept track of hours worked and paid hourly sales associates on a commission basis where, if an employee failed to earn a minimum amount in commissions – comprising of at least $12.01 per hour in commission pay in any pay period – then the employee was paid a … Continue Reading

Missouri Supreme Court Rules That St. Louis’ Minimum Wage Ordinance Is Not Preempted by State Law

Michael D. ThompsonThe Missouri Supreme Court has overturned a lower court’s ruling that St. Louis’ minimum wage ordinance is invalid, finding that the ordinance is not preempted by the state law.

St. Louis City’s Ordinance 70078 (“the Ordinance”) provides for a series of increases to the minimum wage for employees working within the boundaries of St. Louis. The plaintiffs argued that Ordinance 70078 was preempted by the state minimum wage law.  The plaintiffs contended that state law affirmatively authorized employers to pay as little as $7.65 per hour, the state minimum wage rate.

A trial court accepted the plaintiffs’ argument and, in … Continue Reading

Employers Must Continually Navigate a Minimum-Wage Patchwork Across America

Perhaps in response to protests brought by employees and their advocates in recent years, states, counties, and cities across America have been increasing their minimum wage in piecemeal fashion. Few employers are fortunate enough to need worry about only one minimum wage—the federal minimum wage that is the floor below which employers may not go (unless an employer is not covered under the FLSA). Most large employers that operate in multiple states must now navigate a minimum-wage patchwork in which the hourly rate varies from state to state and, sometimes, between counties and cities.

Although the federal minimum wage is … Continue Reading

Compliance with the New DOL Overtime Exemption Rule May Create Unexpected Challenges for Employers

In May of this year, the U.S. Department of Labor (“DOL”) announced its final rule to increase the minimum salary for white-collar exemptions, effective December 1, 2016. With less than two months to go before that new rule takes effect, employers still have time to decide how to address those otherwise exempt employees whose current salaries would not satisfy the new rule, by either increasing their salaries or converting them to non-exempt status.

The New Salary Thresholds

Effective December 1, 2016, the salary threshold for the executive, administrative, and professional exemption will effectively double, increasing from $23,660 ($455 per week) … Continue Reading

Twenty-One States Allege the New White Collar Salary Thresholds are Unlawful

A group of 21 states (“the States”) has filed a Complaint in the Eastern District of Texas challenging the new regulations from U.S. Department of Labor that re-define the white collar exemptions to the overtime requirements of the FLSA.  The States argue the DOL overstepped its authority by, among other things, establishing a new minimum salary threshold for those exemptions.

Pursuant to the new regulations from the U.S. Department of Labor, effective December 1, 2016:

  • the salary threshold for the executive, administrative, and professional exemption will effectively double from $23,660 ($455 per week) to $47,476 ($913 per week);
  • “Highly Compensated
Continue Reading

U.S. Supreme Court Declines to Review DOL Home Care Rule

Our colleagues Denise Merna Dadika and Brian W. Steinbach, attorneys in the Employment, Labor & Workforce Management practice at Epstein Becker Green, have a post on the Health Employment and Labor blog that will be of interest to many of our readers: “U.S. Supreme Court Declines to Review DOL Home Care Rule”

Following is an excerpt:

On Monday, June 27, 2016, the U.S. Supreme Court declined to review a D.C. Circuit Court of Appeals decision upholding the new U.S. Department of Labor’s (DOL) requirement that home care providers pay the federal minimum wage and overtime to home care workers. … Continue Reading

Washington, DC, Increases Minimum Wage to $15 – and Tipped Minimum Wage to $5.00 – by July 1, 2020

Sign - Minimum Wage Increase AheadAs anticipated in our posting on June 9, 2016, on June 21, 2016, the Washington, DC, Council unanimously passed on second reading the Fair Shot Minimum Wage Amendment Act of 2016, without substantive amendment. As discussed in our prior posting, this bill increases the District of Columbia minimum wage – already set to increase to $11.50 on July 1, 2016 – by additional annual increments until it reaches $15.00 on July 1, 2020. It also increases the tipped minimum wage in annual increments starting July 1, 2017 from the existing $2.77 to $5.00 on July 1, 2020. Both rates will … Continue Reading

Cities of Santa Monica, Pasadena, and San Diego Pass New Minimum Wage and Paid Sick Leave Laws

Kevin Sullivan

Kevin Sullivan

The cities of Santa Monica, Pasadena, and San Diego have each recently passed ordinances increasing the minimum wage effective July 1, 2016. And two of them have passed ordinances providing for paid sick leave beyond that required by California state law.

Santa Monica

The City of Santa Monica has passed a new ordinance providing for a city-wide minimum wage of $10.50 beginning July 1, 2016, $12.00 beginning July 1, 2017, and $13.25 beginning July 1, 2018, $14.25 beginning July 1, 2019, $15.00 beginning July 1, 2020 for most businesses with 26 or more employees. There is a one-year … Continue Reading

Washington, D.C. Prepares to Increase Minimum Wage to $15 — and Tipped Minimum Wage to $5.00 — by July 1, 2020

Washington, D.C. is poised to join California and New York by raising its minimum wage to $15.00 per hour.

Sign - Minimum Wage Increase AheadOn June 7, 2016, the D.C. Council, with support of Mayor Muriel Bowser, unanimously passed on first reading the Fair Shot Minimum Wage Amendment Act of 2016 . The bill will continue to raise the District of Columbia minimum wage – currently $10.50, but previously set to increase to $11.50 on July 1, 2016 – in additional annual increments until it reaches $15.00 by July 1, 2020. Beginning on July 1, 2021, the minimum wage will increase further based on the … Continue Reading

Minimum Wage Rates Increased in New York

Evan J. Spelfogel

Evan J. Spelfogel

On March 31, 2016, New York Governor Andrew Cuomo signed into law a bill increasing the statewide minimum wage on a phased in basis over the next five years, to $15.00 per hour in some, but not all New York counties (“Minimum Wage Law”).  This is in addition to a bill enacted on December 31, 2015, that increased the subminimum wage for tipped employees in the hospitality industry from $5 to $7.50 per hour.

The Minimum Wage Law now provides for a tiered increase from the current statewide rate of $9.00, to $11, $13, and $15 per … Continue Reading

California Minimum Wage Increases Will Affect Exempt Salaries, Too

Kevin Sullivan

Kevin Sullivan

On March 31, 2016, the California legislature passed a bill that will gradually increase the state minimum wage to $15 per hour by 2022. Governor Jerry Brown is expected to sign the bill on April 4, 2016. This increase will impact employers statewide. Not only will it affect the wages of many non-exempt employees, but it will also result in an increase in the minimum salary paid to employees who qualify for most overtime exemptions.

The bill calls for the minimum wage to increase to $10.50 per hour effective January 1, 2017, $11.00 per hour effective January 1, … Continue Reading

Oregon Creates Three New Minimum Wage Rates

Oregon Creates Three New Minimum Wage Rates

On March 1, 2016, Oregon Governor Kate Brown signed a law raising the state’s minimum wage. The law is an unusual one, and it will create challenges for many employers with employees in the state, particularly those with operations or employees in multiple counties.

The first increase to the state’s minimum wage will take effect on July 1, 2016, with a new increase scheduled to take effect each July thereafter. The law provides a schedule of annual increases through 2022. Beginning in 2023, the minimum wage will be adjusted annually to account for inflation.

Oregon Minimum Wage Schedule

Starting July 1, 2016, the Oregon … Continue Reading

Minimum Wage Laws Rise in Many States Nationwide in 2016 – Employment Law This Week

One of the featured stories on Employment Law This Week – Epstein Becker Green’s new video program – is the increase in minimum wage laws across the country in 2016. Nationwide, activism around minimum wages has had a big impact on new legislation coming into effect this year. Sixteen states and the District of Columbia will raise their minimum wages in 2016. California and Massachusetts will have the highest state minimum wages at $10/hour. Some city governments have gone even higher. San Francisco employers and large Seattle employers who do not provide medical benefits will have to pay a minimum … Continue Reading

State and Local Minimum Wages Set to Increase in 2016

Minimum Wage IncreaseAs we look towards the New Year, employers with locations in various jurisdictions should be mindful of state and local minimum wage increases that will soon take effect.

Some of these increases are a result of laws that tie wages to an economic index (generally the Consumer Price Index). Others are the result of recent legislation.

Below are two charts addressing these changes. The first summarizes the relevant changes for states; the second, for cities and other localities.

Please note that Arizona, Florida, Missouri, Montana, New Jersey, Ohio, Oregon, and Washington all have CPI based wage laws, and all have … Continue Reading

FLSA Lawsuits Hit Record in 2015 – Employment Law This Week

The top story on Employment Law This Week – Epstein Becker Green’s new video program – is the record high for Fair Labor Standards Act lawsuits in 2015.

The number of federal wage-and-hour suits rose almost 8% this year. There are many reasons for the increase, including more worker-friendly rules and increased publicity around minimum wage and overtime issues. Some point to the difficulties of applying an outdated law to our modern day economy.

Jeff Ruzal, co-editor of this blog, is interviewed. Click below to view the episode.

Continue Reading

Ninth Circuit Requires Plaintiffs To Plead Facts In Support Of Their Wage-Hour Claims

In a great many wage-hour complaints alleging unpaid overtime or failure to pay minimum wage, plaintiffs will bring suit without identifying any specific instances in which the plaintiffs ever worked unpaid overtime or worked for a period of time without being paid at least the minimum wage.  The absence of such basic facts plagues many class action and collective action complaints, in particular.  The Ninth Circuit’s recent opinion in Landers v Quality Communications rejects the notion that plaintiffs can survive a motion to dismiss by relying on cookie-cutter allegations.  The Ninth Circuit has made it clear that plaintiffs must plead … Continue Reading

Minimum Wage for Employees of Federal Contractors and Subcontractors to Rise to $10.10 Per Hour

By Evan J. Spelfogel

On Feb. 12, 2014 President Obama signed Executive Order 13,658 to raise the minimum wage for workers on federal service and construction contracts from the current $7.25 to $10.10 per hour.  On June 12, 2014 the United States Department of Labor announced proposed implementation of the Executive Order with respect to all new and renegotiated federal contracts starting Jan. 1, 2015.

This increased minimum wage would apply to the approximately 200,000 employees working for government contractors and subcontractors, and is another salvo in the President’s push for an increase in the federal minimum wage in the … Continue Reading

Maryland Minimum Wage Increase

 by Brian Steinbach

On May 5, 2014, Maryland Governor Martin O’Malley signed a bill increasing the minimum wage to $10.10, in 5 steps by July 1, 2018. This follows recent legislation in suburban Maryland’s Montgomery and Prince George’s counties that will increase county minimum wages to $11.50 in various steps by October 1, 2017. (See our January 20, 2014 blog post.)

Employers in Maryland now face three different local minimum wage requirements, in addition to those imposed by federal law.

Under the new Maryland law, the general state minimum wage, currently the federal minimum of $7.25, will increase to … Continue Reading

New Minimum Wage for Government Contractors May Have Minimal Impact

by Michael D. Thompson

President Obama announced in his State of the Union address that he will issue an executive order increasing the minimum wage for employees of federal contractors to $10.10 per hour. The executive order is undoubtedly a prelude to a push for Congressional support of an increase in the Fair Labor Standards Act minimum wage of $10.10 per hour.

“If you cook our troops’ meals or wash their dishes, you should not have to live in poverty,” President Obama said. 

According to the Obama administration, the increase would affect more than 2 million employees. 

Many of those employees, … Continue Reading

D.C. Area Minimum Wage Increases

by Brian Steinbach

On January 15, 2014, the Mayor of the District of Columbia signed a bill increasing the DC minimum wage to $11.50, in 3 steps by July 1, 2016. This caps off a recent coordinated effort in DC and suburban Maryland’s Montgomery and Prince George’s counties to increase the regional minimum wage to $11.50.  However, each jurisdiction phases in the increase in different amounts and at different times, starting July 1, 2014.  Employers in the D.C. area will now face several different local minimum wage requirements in addition to those imposed by federal law. They will have to … Continue Reading

New Jersey Minimum Wage Increased to $8.25 per Hour, with Automatic Future Increases Tied to the Consumer Price Index

by Michael D. Thompson

New Jersey voters have approved a ballot question that will raise the state’s minimum wage from $7.25 to $8.25 an hour, and to provide for future increases based on changes in the consumer price index.

After Gov. Chris Christie vetoed the minimum wage increase earlier this year, both houses of the New Jersey Legislature approved a referendum on the issue.  Accordingly, voters were asked: 

Do you approve amending the State Constitution to set a State minimum wage rate of at least $8.25 per hour? The amendment also requires annual increases in that rate if there are … Continue Reading

DOL Extends FLSA Protection to Direct Care Workers

by Jeffrey H. Ruzal

On September 17, 2013, the U.S. Department of Labor (“DOL”) issued a final rule extending the federal minimum wage and overtime pay protection under the Fair Labor Standards Act (the “FLSA”) to many direct care or domestic service workers, including home health aides, personal care aides and nursing assistants. The rule will take effect on January 1, 2015.

For almost 40 years, an exemption from the minimum wage and overtime requirements of the FLSA has applied to domestic service workers employed to provide “companionship services” for an elderly person or a person with an illness, injury, … Continue Reading

San Francisco Minimum Wage To Exceed $10 Effective January 1, 2012

By Michael Kun

On January 1, 2012, the minimum wage for employees working in San Francisco will rise to $10.24 per hour. 

This is, to our knowledge, the first time the minimum wage in any U.S. city has ever exceeded $10 per hour.

Employers with employees in San Francisco will need to make sure that they make appropriate adjustments to their payroll systems and practices to account for the increase.… Continue Reading

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