A couple of weeks ago, I wrote about an initiative by the U.S. Department of Labor, IRS and various state agencies to launch a coordinated crack-down on employers who misclassify employees as independent contractors. Recently, a U.S. District Court in Ohio issued a ruling that nicely illustrates the problem of misclassifcation and the potential liabilities
DOL Coordinates With IRS, States On Independent Contractor Misclassification
Earlier this week, the U.S. Department of Labor held a ceremony at which Secretary of Labor Hilda Solis signed a memorandum of understanding with the Internal Revenue Service to “improve departmental efforts to end the business practice of misclassifying employees in order to avoid providing employment protections.” The DOL also signed or has agreed to
Interesting Wage & Hour Enforcement Statistics
Recently the U.S. Department of Labor revamped its enforcement data website, http://ogesdw.dol.gov/, adding some snazzy new map displays showing inspection and violation data from OSHA and the Mine Safety and Health Administration.
Of more interest to readers of this blog willl be the site’s statistics regarding the Wage and Hour Division‘s enforcement activities.
Tenth Circuit Rules Donning and Doffing Protective Equipment Held Not To Be Compensable
The question of whether to pay employees for putting on protective gear has plagued employers for years. While the federal courts are divided over this issue, at least five Appellate Courts – the Fourth, Sixth, Seventh, Eleventh and now the Tenth Circuits – have held that personal protective equipment is included within the meaning of
Restaurant Association Sues to Block Tip Credit Rules
On April 5, 2011, the U.S. Department of Labor published new final regulations that among other things require employers to give new detailed notices to tipped employees in order to credit tips toward the minimum wage. The new regulations took effect on June 5, 2011. Yesterday, June 16, 2011, the National Restaurant Association, the
What To Do When the DOL Makes an Unannounced Visit
Two federal agents arrive at your workplace and ask to interview all of your employees and see all of your payroll records for the last two years. Their business cards say that they are investigators from the U.S. Department of Labor Wage & Hour Division. What do you do?
The unannounced on-site visit is a
Simply Calling A Job An Unpaid Internship Does Not Make It So
As summer break is about to begin, there is a significant decrease in the number of paid summer jobs available for students. As an alternative, there are a number of students hoping to land internships in the private sector. Given the number of students vying for these positions and the country’s continued slow economic
Security Guards Misclassified As Independent Contractors
On May 24, 2011, a federal district court in Chicago ruled that security guards who were licensed, insured, trained, and paid by the hour by a private security company were not independent contractors, but employees entitled to overtime pay under the Fair Labor Standards Act. Solis v. International Detective & Protective Service, Ltd.
Granting summary
Tip Credits: Twenty Percent Rule For Non-Tipped Duties Adopted
Recently, the Eighth Circuit Court of Appeals ruled that tipped employees who spend more than 20 percent of their time on non-tip-producing “related duties” must be paid at least the minimum wage for that time. Fast v. Applebee’s. This decision marks the first time an appellate court has expressly adopted the Department of Labor’s