Wage & Hour

Expert Analysis

• Acquiring A Company That Uses A Professional Employer Org.

  

  With the professional employer organization industry rapidly expanding, those seeking to acquire a company that uses a PEO should understand there are several employment- and benefits-related complexities, especially in regard to retirement, health and welfare plans, say Megan Monson and Taryn Cannataro at Lowenstein Sandler.

• What Could Lie Ahead For Prop 22 After Calif. Appellate Ruling

  

  On the heels of a California appeals court’s recent decision to uphold Proposition 22 — which allows gig companies to classify workers as independent contractors — an analysis of related rulings and legislation over the past five years should provide context for the next phase of this battle, says Rex Berry at Signature Resolution.

• 3rd Circ. Ruling Offers Tools To Manage Exempt Employees

  

  The Third Circuit’s recent opinion in Higgins v. Bayada Home Health, finding the Fair Labor Standards Act allows employers to deduct paid time off for missed employee productivity targets, gives companies another resource for managing exempt employee inefficiency or absenteeism, says Laura Lawless at Squire Patton.

• Illinois Paid Leave Law May Create Obstacles For Employers

  

  Illinois' Paid Leave for All Workers Act, which goes into effect next year, could create issues and potential liability for employers due to its ambiguity, so companies should review and modify existing workplace policies to prevent challenges, including understaffing, says Matt Tyrrell at Schoenberg Finkel.

• What Employers Must Know About FLSA 'Salary Basis' Rule

  Excerpt from Practical Guidance

  

  To satisfy the salary basis requirement for administrative, executive and professional employee exemptions under the federal Fair Labor Standards Act, employers must take care not to jeopardize employees' exempt status through improper deductions, says Adriana Kosovych at Epstein Becker.

• Water Cooler Talk: Quiet Quitting Insights From 'Seinfeld'

  

  Tracey Diamond and Evan Gibbs at Troutman Pepper chat with Paradies Lagardere's Rebecca Silk about George Costanza's "quiet quitting" tendencies in "Seinfeld" and how such employees raise thorny productivity-monitoring issues for employers.

• How FLSA Actions Are Playing Out Amid Split On Opt-In Issue

  

  Courts are currently split on whether opt-in plaintiffs in collective actions under the Fair Labor Standards Act who join a lawsuit filed by another employee must establish personal jurisdiction, but the resolution could come sooner than one might expect, say Matt Abee and Debbie Durban at Nelson Mullins.

• Pros And Cons As Calif. Employers Rethink Forced Arbitration

  

  As California employers reconsider mandatory arbitration pacts following favorable high-profile federal and state court rulings, they should contemplate the benefits and burdens of such agreements, and fine-tune contract language to ensure continued enforcement, say Niki Lubrano and Brian Cole at CDF Labor Law.

• What Calif. Employers Need To Know About Wage Theft

  

  With the attention of the media, as well as California's state and local governments, now focused on wage theft, more Golden State employers face a dual threat of enforcement and negative publicity, so companies should take specific steps to make sure they don't find their name in the next story, say attorneys at Buchanan Ingersoll.

• Eye On Compliance: Cross-State Noncompete Agreements

  

  The Federal Trade Commission's recent proposal to limit the application of worker noncompete agreements is a timely reminder for prudent employers to reexamine their current policies and practices around such covenants — especially businesses with operational footprints spanning more than one state, says Jeremy Stephenson at Wilson Elser.

• A DOL Reminder That ADA Doesn't Limit FMLA Protections

  

  A recent U.S. Department of Labor opinion letter and some case law make clear that the Family and Medical Leave Act fills in gaps where the Americans with Disabilities Act may not neatly apply, however the agency ignored a number of courts that have supported termination when "no overtime" restrictions effectively reduce a position to part-time, says Jeff Nowak at Littler Mendelson.

• Pending NCAA Ruling Could Spell Change For Unpaid Interns

  

  The Third Circuit's upcoming Johnson v. NCAA decision, over whether student-athletes can be considered university employees, could reverberate beyond college sports and force employers with unpaid student interns to add these workers to their payrolls, say Babak Yousefzadeh and Skyler Hicks at Sheppard Mullin.

• How Managers Can Curb Invisible Off-The-Clock Work Claims

  

  There has been a rash of recent federal lawsuits in which nonexempt employees have alleged their employers failed to pay them for off-the-clock work done without their managers' knowledge, but employers taking proactive measures to limit such work may substantially lower litigation risks, says Robert Turk at Stearns Weaver.