labor lawAdivision of labor law center

Earlier this summer, Tennessee Governor Phil Bredesen signed a new Tennessee Workers’ Compensation law. The new law will limit employers’ liability for injuries suffered by employees during voluntary recreational, social or athletic activities. 

While this law limits workers’ comp cases in Tennessee, employers in other states should be cautious about permitting recreational or sports activities on company property.

The law highlights a dilemma for many employers – how to promote a healthy lifestyle without incurring additional liability for sports-related injuries and deaths.

The new law was sparked by the lawsuit Gooden V. Coors Technical Ceramic Co. In that case, Mr. Gooden collapsed with a fatal heart attack while playing basketball on the employer’s premises during an unpaid break. The court found that an employee’s death on the employer’s premises was a workers’ comp case – even though the basketball game was entirely voluntary.

Because the employer provided the basketball hoop, supervisors sometimes participated in games and the games occurred on company property, the court found that the death (more…)

Most Tennessee employers must pay the new minimum wage of $7.25 per hour, effective July 24, 2009.

The federal minimum wage was established under the The Fair Labor Standards Act or FLSA in 1938. This law made sweeping changes to the workplace. At that time, children of all ages worked alongside adults in mills, farms and factories, sometimes as many as 60 hours a week. The FLSA established child labor laws prohibiting children under the age of 14 from working in almost every job.

Another effect of the FLSA was the establishment of the federal minimum wage. On July 24, 2009, the federal minimum increased 70 cents from $6.55 to $7.25 per hour. This increase affected most of the employers in Tennessee because the state has no minimum wage law.

Under the FLSA, to be eligible for federal minimum wage, an employee must work for a company that earns at least $500,000 per year. FLSA also covers businesses that engage in interstate commerce. Individual workers engaged in interstate commerce are covered by FLSA, too.

For example, a buyer contacting an out-of-state vendor via email or (more…)

Employers have already been warned that the state minimum wage will increase with the new year in Oregon, Washington, Florida, New Mexico, Vermont, Colorado, Arizona, Missouri, Montana, Ohio and Connecticut.

However, employers in other states also have to contend with minimum wage increases this year.

Even if an employer has no minimum wage employees, each increase means the employer must update his or her minimum wage posters. By law, employers are required to display a variety of labor law posters prominently in the workplace. Failure to do so can result in fines, penalties and citations.

On July 1, 2009 the Illinois minimum wage will increase by 50 cents, from $7.50 to $8.00 per hour. This is the final step in a 3-tiered increase introduced by the now-infamous (more…)

The US Department of Labor recently awarded $250,000 to develop strategic economic growth plans for Kentucky and Tennessee. Most of the area affected is in the extreme western tip of Kentucky.

“This $250,000 grant to the West Kentucky Workforce Investment Board will boost efforts to expand the region’s economy and increase job opportunities for Kentucky workers,” said U.S. Secretary of Labor Elaine L. Chao.

The primary focus of the grant is the (more…)

Two community colleges in Tennessee have won worker training grants from the US Department of Labor totaling more than $3.7 million.

Jackson State Community College was awarded $1,997,683 to establish and enhance programs to train highly skilled workers for the healthcare industry. With locations in Lexington, Savannah and Humboldt, as well as Jackson, the school offers distance learning and continuing education as well as daytime classes in a number of allied health specialties.

Northeast State Technical Community College won a grant of $1,946,563 to train workers for the Advanced Manufacturing field. The school is located in Blountville, Tennessee. The school offers associate degrees, apprenticeships and continuing education in the technical field through The Institute for Business and Industry Services.

  (more…)