labor lawAdivision of labor law center

Despite a recent ruling in the 9^th U.S. Circuit Court of Appeals, the U.S. Department of Labor is targeting employers who violate wage and hour laws.

The federal Department of Labor has filed several class action suits in recent months against employers who require – or permit – employees to work “off the clock.” Violations include permitting employees to work while on unpaid meal breaks, or permitting employees to “volunteer” after hours and on weekends.

The FLSA or Fair Labor Standards Act permits the government to file collective actions on behalf of a group of employees in a similar situation. Employers are generally liable for 2 years of back pay, and 3 years in the case of willful violations.

In a recent ruling limiting membership in such class action suits, the 9^th Circuit Court of appeals ruled that an employee can join a collective action only if he or she files written consent with the court at the time the action is brought.

In Smith v. T-Mobile USA, two employees in California voluntarily settled their claims for working during unpaid breaks. Later, the two filed motions to be included in the collective action suit against T-Mobile USA, Inc. The 9^th Circuit denied the employees’ motions, ruling that because they had opted out of the suit at the beginning, they could not join it at a later time.

Colleen F. O’Keefe, an employment lawyer (more…)

In an effort to reduce costs, many employers are considering furloughs – unpaid leave – for exempt employees. However, furloughs can be a legal minefield, if not handled properly, according to the SHRM, the Society of Human Resource Management.

According to the U.S. Department of Labor regulations issued in 2007, an exempt salaried employee is entitled to his or her full salary in any week in which the employee does any work at all – regardless of the number of hours that the employee works.

Under the federal FairPay regulations , an exempt employee who works for 10 minutes during the week is entitled to the same salary as if he or she worked 100 hours during the week.

Also under the FairPay regulations, if an exempt employee is ready, willing and able to work on a particular day, but no work is available, the employer must pay the worker for that day. For example, if the business in Kentucky is closed by a massive power outage, exempt employees must still be paid for that day. Hourly or non-exempt salaried employees need not be paid, under the FLSA or Fair Labor Standards Act.

This means that an employer cannot furlough an exempt employee (more…)

The U.S. Department of Labor or DOL announced on January 15, 2009 that Sandia Corp. has agreed to pay more than $2 million in back wages for unpaid overtime.

In an interesting wrinkle, the Albuquerque employer apparently tried to avoid overtime payments for non-exempt employees by setting no fixed payroll week.

Under the federal FLSA or Fair Labor Standards Act, employers must pay an employee overtime when the employee works more than 40 hours in the payroll week.

Information on the FLSA requirements for overtime are included on the federal minimum wage poster that every employer must prominently display in the workplace.

By not having a fixed payroll week, Sandia averaged the employees’ hours over two or more weeks. Under the FLSA, an employer can establish any fixed payroll week that the employer likes. The payroll week can run from Sunday to Saturday, or from Monday to Sunday, or from Thursday to Wednesday. Under some circumstances, an employer can change the payroll week, as long as employees are given advance notice.

However, the employee’s workweek must be a fixed and regularly recurring period of 168 hours, (more…)

The Montana minimum wage increased by 35 cents on January 1, 2009, from $6.55 to $6.90 an hour. The effective minimum wage for most Montana employees will increase again on July 24, 2009 when the federal minimum wage goes to $7.25 per hour.

More than 70% of Montana voters backed a hike in the minimum wage, supporting Initiative 151 in 2006. That initiative essentially accounts for the increase in the wage that became effective on January 1, 2009. Each year by September 30, the annual Montana minimum wage increase is announced, based on the CPI for the previous 12 months.

The Montana Department of Labor & Industry is the agency that tracked the outcome of Initiative 151.

On July 24, 2009, workers in Montana will again receive a minimum wage hike, when the federal minimum wage of $7.25 an hour kicks in. A worker who is covered by both a state and a federal minimum wage must receive the larger benefit. In Montana, (more…)

The Veterans’ Employment and Training Service, or VETS, published final regulations on priority hiring of veterans and eligible spouses. The new rules appeared in the December 19 Federal Register.

VETS is a division of the U.S. Department of Labor.

The new regulations apply to “any workforce preparation, development or delivery program or service that is directly funded, in whole or in part, by the [U.S.] Department of Labor” as provided by the Jobs for Veterans Act of 2002.

This is especially important since most state departments of labor are funded at least in part by the U.S. Department of Labor. 

“Priority of service is an important acknowledgment of the sacrifices of the men and women who have served in the U.S. armed forces,” said Charles Ciccolella, assistant secretary of labor for VETS. “The department’s strategic vision for priority of service honors veterans and eligible spouses of veterans as our heroes at home, and envisions that the employment and training programs funded by the department, including the workforce investment system, will identify, inform and deliver comprehensive services to veterans and eligible spouses as part of their strategic workforce development activities across the country.”

According to experts at the U.S. Department of Labor, The Veterans’ Benefits, Health Care, and Information Technology Act of 2006 followed up on the (more…)