Wage & Hour Developments
Wage & Hour Developments
The regulatory landscape, appetite for administrative agency enforcement, and judicial interpretations related to wage-and-hour issues are rapidly evolving. Our blog is a one-stop resource for federal- and state-level updates and analysis on wage-and-hour-related developments affecting employers. Subscribe 🡢
California Governor Revives Industrial Welfare Commission
The California Industrial Welfare Commission (IWC) was established to regulate wages, hours, and working conditions in California. Importantly, the IWC adopted "wage orders," which establish specific rules for various industries. California has not funded the IWC since 2004, and it has not been in operation. This is likely to change.
Illinois Joins the Growing List of States With New Pay Transparency Laws
Governor J.B. Pritzker signed into law HB 3129, an amendment to the Illinois Equal Pay Act that changes how employers can advertise for position openings in Illinois, on August 11, 2023. The amendment goes into effect January 1, 2025, and requires all employers with 15 or more employees to provide pay scale and benefits information in all open job postings.
District of Arizona Addresses Judicial Approval of Individual Fair Labor Standards Act Settlements
In August 2023, the U.S. District Court for the District of Arizona joined "the growing number of courts that have concluded" that judicial approval of Fair Labor Standards Act (FLSA) settlements "is neither authorized or necessary." In Evans v.
Department of Labor Seeks To Raise the Federal Minimum Salary Required To Qualify as an Exempt Employee for Fair Labor Standards Act Purposes
The U.S. Department of Labor (DOL) published a Notice of Proposed Rulemaking on August 30, 2023, which proposes revisions to the regulations issued under the Fair Labor Standards Act (FLSA).
Federal Court Rejects “Employer Knowledge” Defense in Arizona Wage Act Claims
A federal court in Arizona recently rejected a defense for Arizona employers seeking to avoid liability for unpaid wages under the Arizona Wage Act. In Arrison v.
California’s Latest Minimum Wage Increase to Take Effect January 1, 2024
Effective January 1, 2024, California's minimum wage will increase to $16.00 per hour for all employers, regardless of size. Under California's Labor Code, by August 1 of each year, the director of finance will determine if the minimum wage must be adjusted for inflation and, if so, calculate the increase in minimum wage by the lesser of 3.5 percent.
Illinois Expands Rights and Remedies for Temporary Workers
Governor J.B. Pritzker signed into law HB 2862 on August 4, 2023, which amends the Illinois Day and Labor Services Act by adding new equal pay obligations and safety and training requirements for employers who hire temporary workers and for staffing agencies that place them—all of which are effective immediately.
California Appeals Court Rules Employer Must Reimburse Employees for Work-From-Home Expenses During COVID-19 Pandemic
On July 11, 2023, in Thai v. International Business Machines Corp. (IBM), a three-justice panel of the California First District Appellate Court overturned a trial court's dismissal of a claim by an employee that the employer violated California law when it failed to reimburse employees for work-from-home expenses during the COVID-19 pandemic.
Freelance Worker Protections Ordinance for Independent Contractors in Los Angeles
In the latest development in California's evolving independent contractor laws, the Los Angeles City Council approved a new ordinance that provides protections for certain independent contractors providing services in Los Angeles.
NLRB Returns to the Obama-Era Standard for Independent Contractors
The National Labor Relations Board (NLRB or the Board) issued a decision on June 16, 2023, returning to an Obama-era standard used to determine whether a worker is an employee or an independent contractor under the National Labor Relations Act (NLRA or the Act). While employees have rights under the NLRA, independent contractors do not.
Washington State Issues New Rules for Paid Family and Medical Leave
The Washington Employment Security Department (ESD) adopted new rules for the state's Paid Family and Medical Leave Act (PFML) regarding employer reporting requirements, child placement, and self-employment elective coverage requirements. The new rules become effective July 1, 2023.
Minimum Wage Increases To Take Place on July 1, 2023, for Some California Localities
As reported earlier this year, California's state minimum wage increased to $15.50 per hour for all employers on January 1, 2023. However, some California employers may face another minimum wage increase on July 1, 2023.
The Sixth Circuit Sets a New Standard for Notification of FLSA Collective Actions
The U.S. Court of Appeals for the Sixth Circuit recently held in Clark v.
Third Circuit Rules Paid Time Off Is Not Part of an Exempt Employee’s Salary
The U.S. Court of Appeals for the Third Circuit, in Higgins v. Bayada Home Health Care Inc., held that it is not a violation of the Fair Labor Standards Act (FLSA) for an employer to deduct time from an exempt employee's paid time off (PTO) bank for failing to meet a productivity target.
District of Columbia Tip Credit Elimination Act Increases Cash Wage for Tipped Employees
The first phase of the District of Columbia Tip Credit Elimination Act of 2021 became effective May 1, 2023.