labor lawAdivision of labor law center

As predicted, the federal government extended the COBRA subsidy on March 2, 2010. The Temporary Extension Act of 2010 results in a continued COBRA premium subsidy to American workers who are unemployed through no fault of their own. In addition, the act extends the subsidy from 9 months to 15 months for many affected workers.

The COBRA subsidy extension applies to employees who are involuntarily terminated between September 1, 2008 and March 31, 2010.

Under a new provision of the COBRA subsidy, workers who are terminated involuntarily on or after March 2, 2010 are eligible if that termination follows a qualifying event that was a reduction of hours. The qualifying event must have occurred between September 2, 1008 and March 31, 2010. For example, if an employee’s hours were reduced in November 2009 and he is subsequently laid off after March 2, 2010, he will qualify for the COBRA premium reduction.

The current premium reduction lasts for 15 months and applies to employees who were laid off on or after February 17, 2009. Some of these employees have already had the COBRA subsidy for 9 months. (more…)

The U.S. Department of Labor continues to work on new FMLA regulations related to leave for military families.

Under the bill approving the military budget, the National Defense Authorization Act, the president expanded FMLA to military families when the soldier is deployed in a foreign country.

The FMLA leave that was granted to members of the Reserve and National Guard under the 2009 regulations is now extended to families of armed services members who are on active duty in a foreign country.  

The new regulations are expected to be (more…)

The good news for employers is that most state minimum wages are holding steady in 2010. In January 2009, more than a dozen states increased their minimum wages. In 2010, only a few minimum wage changes are in effect.

The Kansas minimum wage increased from $2.65 to $7.25 on January 1, 2010. This is the first time in more than two decades that the Kansas minimum wage has increased. The change comes after more than a decade of efforts by Kansas Democrats. On December 31, 2009, Kansas had the lowest minimum wage of any state. Effective today, X states have lower minimum wages.

To be fair to Kansas, five states have no minimum wage whatsoever. They are Mississippi, Alabama, Louisiana, Tennessee and South Carolina.

In an unprecedented step, the Colorado minimum wage actually decreased by 4 cents from $7.28 per hour to $7.24 per hour today. Most employees in the state are still covered by the federal minimum wage of $7.25 per hour.

About a dozen states annually increase the minimum wage based on the cost of living. However, in most areas the cost of living has shown a decrease of 1% to 2%. While many state statutes prevent the minimum wage from being reduced, they have not been increased.

States that have skipped the annual increase in minimum wage this year include Ohio, Washington, Oregon, Vermont, Nevada, Montana, Missouri and Arizona.

In Florida, by statute the state minimum wage cannot be (more…)

The Vermont minimum wage in 2010 will remain at the current rate of $8.06 per hour. This is good news for employers in a state where the minimum wage normally increases every year.

Under state law, the Vermont minimum wage increases each year based on the cost of living. According to a press release issued by the Vermont Department of Labor, the cost of living fell by 1.5% between September 1, 2008 and August 31, 2009. Because the state law does not permit a decline in the minimum wage, it will remain at the current level until 2011.

The annual adjustment in the Vermont minimum wage is based on the Consumer Price Index or CPI. The increase each year is limited to a maximum of 5%.

“A steady minimum wage reflects our economic times, “ according to Labor Commissioner Patricia Moulton Powden. “The cost of living has fallen and the ability of employers to increase pay is limited by the recession.”

The Vermont minimum wage for tipped employees will also remain stable at $3.91 per hour for employees who earn at least $120 per month in tips for direct, personal service. However, those employees are still entitled to the minimum wage of $8.06 when tips and (more…)

The Oregon minimum wage will remain at $8.40 in 2010, according to Labor Commissioner Brad Avakian. The Commissioner recently announced that due to a decline of 1.48% in the cost of living, the state minimum wage would be unchanged.

This is the first time since 2002 that the Oregon minimum wage will not have an annual cost-of-living increase.

“Under the circumstances, a steady minimum wage is good for Oregon’s businesses and working people,” Commissioner Avakian said. He pointed out that with the economy struggling, this would allow minimum wage employees to maintain their purchasing power and contribute to recovery. Avakian added, “At the same time, employers who are in difficult financial situations can breathe a little easier because there labor costs will remain constant.”

At $8.40 per hour, the Oregon minimum wage is still the second highest in the nation. It is exceeded only by the Washington minimum wage of $8.55 per hour. (more…)