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Federal DOL Updates: Clarification on the “Joint Employer” Standard, Overtime Calculation in Multi-Week Bonus Periods, and Per-Project Pay for Exempt Salary Threshold

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The U.S. Department of Labor (DOL) published a final rule concerning the joint employer standard, as well as two Fair Labor Standards Act (FLSA) opinion letters providing guidance on specific wage and hour inquiries.  Below are key takeaways from each of these updates.

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U.S. Dept. of Labor Withdraws Guidance on Independent Contractors and Joint Employment

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June 7, 2017

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On June 7, 2017, in a somewhat surprising turn of events, the U.S. Secretary of Labor withdrew the Department’s previously issued informal guidance on independent contractors and joint employment.  The Department’s announcement stated that:

“Removal of the administrator interpretations does not change the legal responsibilities of employers under the Fair Labor Standards Act and the Migrant and Seasonal Agricultural Worker Protection Act, as reflected in the department’s long standing regulations and case law.”

Fourth Circuit: Unique Six Factor Test to Determine Joint Employer Status

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January 25, 2017

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In Salinas v. Commercial Interiors Inc., the Fourth Circuit Court of Appeals recently established a unique six factor test for determining joint employer status that aligns with the Department of Labor’s broad interpretation of joint employer status, and rejected the more narrow “economic realities” test used in other circuit courts.

NLRB Says Joint-Employer Workers Can Join Unions Without Consent of Employers

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July 11, 2016

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Last year, we reported on the National Labor Relations Board’s (“NLRB”) controversial decision to redefine the joint-employer standard.  This year, the NLRB has reinstated a standard that allows bargaining units composed of both solely and jointly-employed workers to unionize, with or without their employer’s consent.  This would allow temporary workers who are jointly employed to more easily unionize.

June Updates

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This HR Alert addresses the following topics:
  1. U.S. Supreme Court Declines to Rule on Contraceptive Coverage Decisions
  2. U.S. Supreme Court Ruling Revises Statute of Limitations on Constructive Discharge Claims
  3. EEOC Doubles Poster Violation Penalty Fine
  4. EEOC Provides Guide for Using Leave as a Reasonable Accommodation under ADA
  5. California Businesses Now Have Time to Fix Accessibility ADA Violations
  6. California Paid Sick Leave Coverage Expanded to In-Home Workers
  7. Los Angeles, CA Doubles Paid Sick Leave, Effective July 1, 2016
  8. Santa Monica, CA’s Paid Sick Leave Implementation Delayed to 2017
  9. Georgia: Franchisors are not Employers of Franchisees or Franchisees’ Workers
  10. Many Tennessee Employers Soon Required to Use E-Verify
  11. Vermont Passes Ban-the-Box Legislation

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January Updates

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This HR Alert addresses the following topics:

  1. OSHA 300A forms, due February 1, 2016;
  2. The U.S. Dept. of Labor’s issuance of guidance on joint employer analysis;
  3. Long Beach, California’s minimum wage rate increase
  4. Federal unemployment insurance rate increase

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Regulation Changes With Regard to Unions

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April 13, 2015

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September 1, 2015

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With the recent National Labor Relations Board (NLRB) ruling redefining joint employer status, more employers may have to be conscious of the changing regulations regarding collective bargaining procedures. Throughout 2015, the NLRB has issued some updates to the rules governing union elections and petitions. Companies that may now be categorized as a joint employer, and therefore potentially subject to union activity of the shared workforce, should review these updated rules, summarized below.

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NLRB Issues Controversial Decision Redefining Joint Employer Status

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August 27, 2015

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In a 3-2 decision involving Browning-Ferris Industries of California, the National Labor Relations Board revised its standard for determining joint-employer status last Thursday, August 27, 2015.

Specifically, the Board defined an employment relationship as one where the employer either exercises control or has the right to exercise control over the work of the employee. The latter is an added factor meant to bring NLRB standards in line with existing law. Thus, in determining joint employer status, where a “user employer reserves a contractual right to set a specific term or condition of employment for a supplier employer’s workers, it retains the ultimate authority” over the employee and “legal consequences may follow from this choice.”

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