The Labor Department has changed its policy of not policing tip pools. The agency recently issued a bulletin to all staff instructing them to assess violations dating back to March 23, 2018, on employers who either keep tipped workers’ tips or share those tips with management staff. This instruction is based on the new law…

Employers will not have to wait much longer for the U.S. Supreme Court’s decision regarding whether employment agreements which waive class-actions and mandate arbitration are enforceable, notwithstanding certain provisions of the National Labor Relations Act (NLRA). This decision will likely impact employers and employees across the country; some 25 million employees nationwide are estimated to…

The U.S. Supreme Court has rejected a long-established principle that FLSA overtime exemptions must be narrowly construed against employers.  The Court set aside its previous precedent of applying exemptions only to cases that fall “plainly and unmistakably within their terms and spirit,” a standard that compelled lower courts to resolve any close conflict over whether…

The Department of Labor (DOL) recently announced the rollout of a new Payroll Audit Independent Determination (“PAID”) Program, which will allow employers to proactively identify and correct minimum wage and overtime errors, and pay all back wages due to employees. Employees who accept back wage payments under the PAID Program will waive their rights under…

In the wake of the #MeToo movement and the current spotlight on the issue of workplace harassment, companies may be more likely to take on a “zero-tolerance” policy with respect to workplace harassment.  Such a policy may lead employers to move faster on accusations of harassment which otherwise might have been swept under the rug,…

Our federal court recently ruled that a food packaging company cannot be held liable for the alleged years of sexual harassment by a co-worker when there was no evidence the employer had knowledge or a chance to investigate. Once the employee reported the sexual harassment, the employer immediately began its investigation and offered to change…

On January 5, 2018, our Circuit Court of Appeals held that an employer who relied on the affirmative defense that the pay disparity between the sexes was based on a “factor other than gender” was required to prove not that the stated reason could explain the wage disparity, but that the reason did in fact…

A jury found warehouse club Costco Warehouse Corp. liable after it allegedly failed to protect one of its employees from a customer’s harassment, and ordered the company to pay its employee $250,000 in damages, based upon evidence that the customer approached the employee often, asked her out on dates, tried to hug her and videotaped…

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