Whenever I discuss federal law here on the blog, I usually add a disclaimer that reminds employers to check state and local laws before proceeding. With the proliferation of minimum wage increases, minding state and local laws is more important than ever. However, state laws can affect more than just the minimum wage. For instance
state laws
The Religious Freedom Restoration Act (RFRA) and Wage and Hour Law
Unless you are living under a rock, you are probably aware of the uproar in Indiana about the Religious Freedom Restoration Act that the state passed, triggering an incredible backlash inside and outside the state and a rush by legislators to revise the newly-enacted law. When even NASCAR is criticizing legislation instead of…
Maryland Appeals Court Casts Doubt On Forum Selections Clauses in Wage Payment Disputes
Recently, the Maryland Court of Appeals took the position, albeit in dicta, that the state’s Wage Payment and Collection Law reflects a “strong” public policy of Maryland and urged Maryland courts to reject as unenforceable any future out-of-state forum selection provisions contained in employment agreements. While just one decision, employers with Maryland-based employees should review…
Not Every Employee is Covered by the FLSA, But You’re Not Off the Hook Just Yet
If you read this blog, attend presentations on wage and hour issues, or just shudder every time you read about another overtime or minimum wage lawsuit, you might assume that all employees are covered by the federal Fair Labor Standards Act (FLSA) and its regulations. However, in some rare circumstances, the FLSA may not cover very small and, importantly, local businesses, meaning that those businesses’ employees may not be entitled to the minimum wage or overtime pay under the FLSA. A quick warning before we start: as we have highlighted in the past, though, most states and an increasing number of local governments do not provide exemptions from state and local minimum wage laws, even for small businesses. With a very few exceptions, the fact that the FLSA does not apply only resolves one half of the question; you almost certainly still have to contend (and comply) with state and local laws, that may have different standards and penalties.
Setting aside state and local issues for a moment, the FLSA provides two different ways for coverage to apply: and “enterprise coverage” and “individual coverage.” Setting aside more complex corporate structures that can implicate “joint employer” or similar tests, both coverage tests are straightforward. For most businesses, the FLSA’s enterprise coverage provisions will apply if the business meets two tests. First, the business must be involved in interstate commerce. Second, the business’s gross annual revenue must be at least $500,000. If a business meets both tests, then all employees working for the business are covered, regardless of whether they ever engage in interstate commerce. Notwithstanding these limits, the FLSA also automatically covers some businesses, such as schools, hospitals, nursing homes, or other residential care facilities as well as all governmental entities (regardless of the level of government), no matter how big or small.Continue Reading Not Every Employee is Covered by the FLSA, But You’re Not Off the Hook Just Yet
Wage and Hour 2014 Election Results Roundup: Minimum Wage, Paid Sick Leave Big Winners
Before the election, we talked about minimum wage and paid sick leave initiatives on the rise, including some important ballot issues. With most of the results tallied, it appears that the Republicans weren’t the only big winners in the 2014 midterm elections last night. While the GOP retaking the Senate majority and reaching historic…
DOL Backs Paid Leave Push in 3 States, D.C. with $500,000 Grant
Recently, we detailed the efforts to push for paid sick leave by state and local governments in light of California’s passage of a statewide paid leave law. Soon after our post, the U.S. Department of Labor’s Women’s Bureau Director Latifa Lyles posted an entry on the DOL’s official “Work in Progress” blog, advocating for…
Not Just Minimum Wage: Proposed Paid Sick Leave Laws on the Rise, Too
Earlier this month, we told you about California’s new statewide sick leave law, which Governor Brown subsequently signed. While minimum wage increases seem to be getting the lion’s share of the press right now, proposed paid sick leave laws are on the rise nationwide, too. Connecticut is the only other state that grants paid …