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Second Circuit: Equal Pay Claims are Easier to Reach for Employees

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December 6, 2019

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In Lenzi v. Systemax, Inc., the Second Circuit Court of Appeal addressed a gender discrimination claim under Title VII based on unequal pay. There, the court stated that a female employee, claiming she was paid less than the men who also held Vice President titles within the company, only needed to show that she was discriminated against based on her sex. She did not need to show that she was paid less than her male peers or that they held substantially equal positions to hers.

Essentially, the court distinguished the standards of proof required between unequal pay claims brought under Title VII of the Civil Rights Act of 1964 versus under the Equal Pay Act of 1963, making the bar for equal pay claims lower under Title VII. Employers should expect to see more Title VII claims for allegations of unequal pay based on sex discrimination.

Action Items

  1. Have a compensation audit conducted to review equal pay.
  2. Have applicable managers trained on setting pay rates.
  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.

© 2020 ManagEase

Second Circuit Refines the Definition of the Outside Salesperson Exemption

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September 19, 2018

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In Flood v. Just Energy Mktg. Corp., the Second Circuit Court of Appeal recently addressed what qualifies an employee for the outside sales exemption under the Fair Labor Standards Act (FLSA). Generally, the outside sales exemption is based on an employee’s primary duties – making sales or obtaining orders for contracts or services, while customarily and regularly engaged away from the employer’s place of business.

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Second Circuit Clarifies Damages and Shareholder Liability under the FLSA

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October 1, 2018

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In Tapia v. BLCH 3rd Ave. LLC, the Second Circuit Court of Appeal clarified that there is no double recovery of liquidated damages under the FLSA where damages are also awarded under state law. Additionally, the court reviewed direct shareholder liability under the FLSA by looking at the operational control of the alleged employer, including whether the individual has the power to: (1) hire and fire employees, (2) supervise and control employee work schedules or conditions of employment, (3) determine the rate and method of payment, and (4) maintain employment records.

There, the court found evidence that the shareholder only partially satisfied the fourth criteria of operational control. Ultimately, the court stated that status as a significant shareholder was not alone enough to show that the employer exercised or possessed financial control over the company to be held personally liable.

Action Items

  1. Review corporate structures for potential liability.
  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.

© 2018 ManagEase

Second Circuit: Sexual Orientation Discrimination is Prohibited Under Title VII

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February 26, 2018

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The Second Circuit Court of Appeals joins the Seventh Circuit in stating that Title VII of the Civil Rights Act of 1964 prohibits sexual orientation discrimination. Historically, the circuit courts have not included sexual orientation as a protected status under sex discrimination, which is prohibited by Title VII, but the Second Circuit acknowledged that the social and legal landscape surrounding LGBT rights have evolved.

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February Updates

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Varies

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Varies

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This Short List addresses the following topics:
  1. REMINDER: Post OSHA 300A Summary
  2. Civil Money Penalties for 2018 Increased
  3. Second Circuit: FLSA Claims are Subject to Arbitration
  4. California: Attorney General Emphasizes Intent to Prosecute Employers Who Help Immigration Sweeps
  5. Connecticut: Pregnancy Discrimination and Accommodation Posting Required
  6. Massachusetts:  Supreme Judicial Court Limits Wage Act Liability
  7. New York City, NY: Fair Workweek Deductions Law Put on Ice—For Now

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Second Circuit: Court of Appeals Further Defines Who is Subject to the “Ministerial Exception”

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June 30, 2017

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In Fratello v. Archdiocese of New York, the Second Circuit Court of Appeals provided important guidance on determining whether or not an employee may be classified under the “ministerial exception.”  The “exception” precludes employees who may be classified as a “minister” from making employment discrimination claims against the religious entities that employ them. A “minister” is determined by evaluating, among other things, the employee’s formal title, the substance reflected in the title, the employee’s use of the title, and the important religious functions performed.

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Second Circuit: “Black Car” Drivers are Independent Contractors Under the FLSA

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April 21, 2017

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A recent Second Circuit case confirmed that New York City “black car” drivers—workers who provide high-end transportation services, e.g., limousines—are independent contractors under the Fair Labor Standards Act (“FLSA”).

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Second Circuit: Employers May Be Responsible for Determining if FMLA Leave Applies

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February 9, 2017

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The Second Circuit recently stated that employers are responsible for requesting additional information from an employee in order to determine if the employee is eligible for FMLA leave.

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