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APPLIES TO
All Employers with MN Employees
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EFFECTIVE
September 18, 2019 |
QUESTIONS?
Contact HR On-Call
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In In re Minnesota Living Assistance, Inc., the Minnesota Supreme Court stated that employers cannot use split-day overtime to comply with state overtime rules, where employees have not yet worked the overtime hours meant to comply with state overtime rules. There, the employer paid employees one rate for the first 5.5 hours worked in a 16-hour day, and 1.5 times that rate for the remaining 10.5 hours. The Court stated that the Minnesota Fair Labor Standards Act requires employers to pay employees overtime for all hours worked in excess of 48 in a week, regardless of whether the employee received time-and-a-half compensation during the first 48 hours worked.
Additionally, time-and-a-half wages paid during the first 48 hours worked in a workweek cannot be excluded when calculating an employee’s regular rate of pay, because those hours were not paid for overtime work (which are excluded when calculating the regular rate of pay). Because federal Fair Labor Standards Act overtime rules vary compared to the state rules, employers must take care to comply with both.
Action Items
- Review split-day overtime policies and procedures to ensure compliance with state wage and hour rules.
- Have payroll processes updated.
- 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.
© 2019 ManagEase
California: Changing Definition of “Serious Injury” Expands Employer Responsibilities
/in HR AlertsAPPLIES TO
All Employers with CA Employees
EFFECTIVE
January 1, 2020
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AB 1805 revises the definition of a “serious” injury under the California Labor Code, resulting in expanded reporting responsibilities for employers. Currently, employers are required to report to Cal/OSHA any serious injury or death in the workplace as soon as possible, but no later than eight hours after the employer became aware of the death or injury. The timing requirements remain the same, but the revised definition of “serious” injury means employers will potentially need to report more injuries.
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Illinois: Complying with the Illinois AI Video Interview Act
/in HR AlertsAPPLIES TO
All Employers
EFFECTIVE
August 9, 2019
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(888) 378-2456
A few months ago, the Illinois legislature unanimously passed HB 2557, the Artificial Intelligence Video Interview Act (the Act). This bill addresses employer use of AI in the recruiting/hiring process, namely, AI used to analyze applicants in video interviews. The bill imposes a number of responsibilities on employers to provide notification, information, and obtain authorization from applicants who will be subject to AI analysis. The Act applies to employers who are seeking to fill a position in Illinois.
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Minnesota: Split-Day Overtime is Over
/in HR AlertsAPPLIES TO
All Employers with MN Employees
EFFECTIVE
September 18, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
In In re Minnesota Living Assistance, Inc., the Minnesota Supreme Court stated that employers cannot use split-day overtime to comply with state overtime rules, where employees have not yet worked the overtime hours meant to comply with state overtime rules. There, the employer paid employees one rate for the first 5.5 hours worked in a 16-hour day, and 1.5 times that rate for the remaining 10.5 hours. The Court stated that the Minnesota Fair Labor Standards Act requires employers to pay employees overtime for all hours worked in excess of 48 in a week, regardless of whether the employee received time-and-a-half compensation during the first 48 hours worked.
Additionally, time-and-a-half wages paid during the first 48 hours worked in a workweek cannot be excluded when calculating an employee’s regular rate of pay, because those hours were not paid for overtime work (which are excluded when calculating the regular rate of pay). Because federal Fair Labor Standards Act overtime rules vary compared to the state rules, employers must take care to comply with both.
Action Items
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.
© 2019 ManagEase
New York: Court Decision Results in New Challenges with the Frequency of Pay Law
/in HR AlertsAPPLIES TO
All Employers with NY Employees
EFFECTIVE
September 10, 2019
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(888) 378-2456
In Vega v. CM & Associates Construction Management, LLC, the Appellate Division of the New York Supreme Court stated that employers may be liable to pay liquidated damages for wage claims surrounding a failure to pay manual workers timely.
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Oregon: Employers MUST Ensure Meal Periods are Taken
/in HR AlertsAPPLIES TO
All Employers with Oregon Employees
EFFECTIVE
November 14, 2019
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(888) 378-2456
In Maza v. Waterford Operations, LLC, the Oregon Court of Appeal stated that it was not sufficient that an employer provide employees with the opportunity to take required meal breaks, but that meal premiums must be paid if an employee does not take the required minimum 30-minute break if working shifts longer than six hours, and a second meal break for shifts of 14 hours or more.
There, the employer’s meal break policy stated it was mandatory that employees took the required meal periods and did not permit waiver of a meal period. It also required employees to report if an employee was required to work off the clock. However, the court stated these were insufficient steps and that the employer was strictly liable for a missed or insufficient meal period, regardless of the reason.
Action Items
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.
© 2019 ManagEase
Oregon: Senate Bill Implements Fixes to Equal Pay Law
/in HR AlertsAPPLIES TO
All Employers with OR Employees
EFFECTIVE
January 1, 2020
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(888) 378-2456
Senate Bill 123 provides clarity to a few aspects of the Oregon Equal Pay Act (EPA), as well as a voluntary equal pay analysis safe harbor.
Under the EPA, employers are required to pay employees the same rate for work of comparable character, unless the pay differential can be attributed to one or more bona fide factors, such as a seniority system, merit system or system that measures earnings by quantity or quality. SB 123 updates the definition of a “system” to mean “a consistent and verifiable method in use at the time that a violation is alleged.”
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Pennsylvania: Fluctuating Workweek Method of Overtime Pay No Longer Permitted
/in HR AlertsAPPLIES TO
All Employers with PA Employees
EFFECTIVE
November 20, 2019
QUESTIONS?
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(888) 378-2456
In Chevalier v. General Nutrition Centers, Inc., the Pennsylvania Supreme Court stated that employers may not use the fluctuating workweek (FWW) method of calculating overtime under state wage and hour law. The FWW allows employers to pay a fixed salary, regardless of the number of hours worked, and pay overtime at a half hourly rate for time worked over 40 hours in a week by dividing the fixed salary by the number of hours worked in a week. The idea is that employees already receive the first portion of the overtime rate in the fixed salary.
The Court stated that this method, although permitted under federal law, was not consisted with state wage and hour law, which requires that employees be paid for overtime “not less than one and one-half times” the employee’s regular rate. Employers must stop using the FWW method of calculating overtime and ensure that employees receive one and a half times the regular rate of pay for overtime hours worked.
Action Items
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.
© 2019 ManagEase
Washington: No Separate Rate for Non-Piece Work Time
/in HR AlertsAPPLIES TO
All Employers of WA Employees
EFFECTIVE
September 5, 2019
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(888) 378-2456
In Sampson v. Knight Transp., Inc., the Washington Supreme Court told a federal district court that the Washington Minimum Wage Act (MWA) does not require non-agricultural employers to pay piece-rate employees per hour for time spent performing activities outside of piece-rate work. As long as employee total wages for the week do not fall below the statutory minimum wage for each hour worked, the employer is in compliance with the MWA.
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December Updates
/in HR AlertsAPPLIES TO
Varies
EFFECTIVE
Varies
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NLRB Changes Course on Mandatory Arbitration Agreements
/in HR AlertsAPPLIES TO
All Employers Subject to the NLRA
EFFECTIVE
August 14, 2019
QUESTIONS?
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(888) 378-2456
In 2018, in Epic Systems Corp. v. Lewis, the U.S. Supreme Court stated that employers may require employees to sign arbitration agreements with class action waivers. Recently, the National Labor Relations Board (NLRB) took the Epic decision even further.
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