Ninth Circuit: DOL’s 80/20 Tip Credit Rule is Invalid

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All Employers of AK, AZ, CA, GA, HI, ID, MT, NV, OR, WA Employees

EFFECTIVE

September 6, 2017

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The Department of Labor (“DOL”) permits employers to give a tip credit to tipped employees who spend no more than 20% of their time performing non-tipped duties. In Marsh v. J. Alexander’s, LLC, the Ninth Circuit noted that this rule is only found in the Field Operations Handbook used by the DOL as guidance for investigations by field officers, rather than in a statute or regulation; as a result, the court stated it was not valid.

Seventh Circuit: Additional Months of Leave after FMLA not a Reasonable Accommodation

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All Employers of IL, IN, WI Employees

EFFECTIVE

September 20, 2017

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Employers may already know that certain types of leaves of absence may qualify as a reasonable accommodation under the Americans with Disabilities Act (“ADA”).  However, the Seventh Circuit recently confirmed that an employee’s request to take additional months of leave after exhausting his FMLA allotment was not a reasonable accommodation under the ADA.

California: New Law Imposes Pay Data Reporting Requirements on Large Employers

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All Employers of 500+ CA Employees

EFFECTIVE

July 1, 2019

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UPDATE (10/23/17) – Although passed by the California State Legislature, this law was not signed by Governor Brown and therefore did not go into effect. Look for additional updates on this topic. 

While the Trump Administration has indefinitely blocked implementation of the EEO-1 form section that would have required reporting employee pay data, California has gone a step further in requiring employers to report information about gender wage differentials.  Effective July 1, 2019 and biennially thereafter, Labor Code Section 2810.6 will require employers of 500 or more CA employees to collect and report specific demographic and wage disparity information.

Connecticut: Overtime for a Fluctuating Work Week Schedule is Calculated Based on State Law

APPLIES TO

All Employers with CT Employees

EFFECTIVE

August 17, 2017

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In Williams v. General Nutrition Centers, Inc., the Connecticut Supreme Court recently stated that employers must calculate overtime for a fluctuating work week (“FWW”) schedule based on state, rather than federal, overtime rules.

There, GNC followed federal rules and divided the employees’ weekly pay by the actual number of hours the employees worked in that week to determine the employees’ regular rate of pay. However, the court stated that Connecticut requires employers to divide weekly pay by the number of hours the employees usually work each week, rather than actual hours.  In following the federal model, the GNC employees would always work over 40 actual hours per week when overtime is involved.  Thus, the number of actual hours would be greater than the usual hours worked, and the resulting calculation for the regular rate of pay would always be lower than if the usual hours were used to calculate rates.

Connecticut employers with FWW schedules should review overtime calculation methods to ensure compliance with the recent ruling.

Action Items

  1. Read the text of Connecticut Supreme Court’s opinion here.
  2. Review overtime calculations for compliance with state overtime rules.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

Florida: Employees May Be Prohibited from Using Employer Referral Sources After Termination

APPLIES TO

All Employers with FL Employees

EFFECTIVE

September 14, 2017

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In Florida, non-compete agreements are used to protect an employer’s “legitimate business interests.” The Florida Supreme Court recently stated that referral sources may be considered a legitimate business interest. In both White v. Mederi Caretenders Visiting Services of Southeast Florida and Americare Home Therapy, Inc. v. Hiles, the employers hired an individual whose job duties included soliciting health care providers for home health care service referrals.  The employees were required to sign a non-compete agreement that restricted their ability to work for competitors for a year after termination; in both instances, the employers sued when their respective ex-employee went to work for a competitor after their termination.

The Florida Supreme Court identified the crux of both cases as determining whether or not the home health care service referrals qualified as a legitimate business interest.  Ultimately, the court stated that the statute did not specifically preclude a referral source from being recognized as a legitimate business interest.  However, the court cautioned that employers should not consider these cases as a ticket to consider all referral sources as a legitimate business interest.  Instead, courts must analyze the facts of any similar case to determine how critical the referral source is to the business, the nature of the business, and the scope of business’s investment in developing referral relationships.

Action Items

  1. Review restrictive covenants or non-compete agreements with labor counsel to ensure agreements cover all legitimate business interests.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

Rhode Island: Statewide Paid Sick Leave Begins July 1, 2018

APPLIES TO

All Employers with 18 or More RI Employees

EFFECTIVE

July 1, 2018

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(888) 378-2456

Rhode Island joins a small but slowly expanding number of states requiring employers to provide their workforce with paid sick leave (“PSL”).  Effective July 1, 2018, the Health and Safe Families and Workplace Act (the “Act”) incorporates new time off, tracking, and documentation requirements for many Rhode Island employers.

October Updates

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Varies

EFFECTIVE

Varies

QUESTIONS?

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(888) 378-2456

This Short List addresses the following topics:
  1. U.S Federal Contractor Updates
  2. Alabama: City of Birmingham Approves Nondiscrimination Ordinance
  3. California: Cal/OSHA Says Federal OSHA Reporting Requirements do not Apply to CA Employers
  4. Illinois: Amendments to the Illinois Human Rights Act Codify Religious Garb Protections
  5. Kentucky: Supreme Court Permits Wage and Hour Class Actions
  6. New York: 24-Hour Non-Residential Home Care Attendants Must be Paid for Sleep and Meal Periods
  7. Texas: New Leave Protection for Foster Parents and Preference for Veterans in Employment
  8. Wisconsin: Court of Appeals Upholds “Right to Work” Law

Read more