Gibbons Law Alert

Gibbons Law Alert

Tagged: Wage & Hour

Wage and Hour Guidance: Individual Liability for Officers and Directors Under the FLSA

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Posted in Wage and Hour

On August 25, 2011

Corporate directors, officers, and agents need to be aware of the potential personal risks associated with the non-payment of wages to their company’s employees. Although the existence of a corporate or other business-entity form generally provides protection from individual liability for corporate actors, one significant exception is for claims brought pursuant to the Fair Labor Standards Act (“FLSA”). A corporate director, officer or agent’s own individual assets may be used to satisfy any judgment for unpaid wages in favor of the company’s employees. As employers continue to deal with the economic downturn, and more companies are finding themselves struggling to meet payroll, corporate officers, directors, or agents may more frequently find themselves the individually-named targets of an FLSA lawsuit.

New iPhone Application Allows Employees to Track Hours Worked and Wages Owed

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Posted in Wage and Hour

On May 24, 2011

On May 9, 2011, the U.S. Department of Labor (“DOL”) issued a press release announcing that there is now an application for the iPhone or iPod Touch that employees can use to easily and independently record their hours worked (including overtime and break times) and calculate wages that are owed to the employee. The free application is called “DOL-Timesheet” and is available in both English and Spanish. Although it is premature to assess whether this application will in fact be utilized by the DOL and employees in wage and hour enforcement and litigation, the emergence of the new technology serves to remind employers of the importance of accurate recordkeeping of employee hours worked and training of employees regarding policies on overtime, rest and meal breaks. In addition, to minimize the risk of an enforcement action and/or litigation and associated penalties, employers should encourage employees to come forward if they notice any disparity between the employer’s time records and the records the employee maintains independently through the application.

6th Circuit Applies “Primary Benefit” Test to Students in Work-Study Program

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Posted in Wage and Hour

On May 13, 2011

The United States Court of Appeals for the Sixth Circuit recently held that the proper test for determining whether persons participating in employer-sponsored training programs qualify as “employees” under the FLSA is an examination into which party derives the primary benefit from the relationship. The Sixth Circuit’s decision in Solis v. Laurelbrook provides guidance to any employer using students to perform work as part of a work-study or trainee program who are not monetarily compensated for such work.

New York Wage Theft Prevention Act Effective April 9, 2011

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Posted in Wage and Hour

On May 4, 2011

We previously reported on a series of changes to New York Labor Law contained within the Wage Theft Prevention Act (“WTPA”) that are now applicable to all New York private-sector employers (including charter schools, private schools, and not-for-profit corporations). As discussed in our previous post, the WTPA requires New York employers to provide all employees with written pay notices at the time of hire and on or before February 1 of each year that include: the employee’s rate or rates of pay; the overtime rate of pay, if the employee is nonexempt; the basis of wage payment (e.g., per hour, per shift, per week, piece rate, commission, etc.); the allowances to be claimed against the minimum wage (e.g., tip, meal, and lodging allowances); the regular pay day; the employer’s name and any name under which the employer conducts business; the physical address of the employer’s main office or principal place of business (if different from the mailing address); and the employer’s telephone number.

New York Employers Must Comply with Wage Theft Prevention Act Effective April 12, 2011

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Posted in Wage and Hour

On January 4, 2011

On December 14, 2010, New York Governor David Patterson signed the Wage Theft Prevention Act (“WTPA”), a new law that significantly changes the wage and hour landscape for all New York employers. This amendment to the New York Labor Law targets those employers who engage in “wage theft” by underpaying employees. In application, however, the WTPA will affect all New York employers by imposing burdensome notification and recordkeeping requirements, expanding the scope of penalties for violations, and increasing opportunities for employment litigation through strengthened anti-retaliation provisions. In compliance with these new amendments, New York employers will need to amend their payroll practices on or before April 12, 2011.

FLSA Amended to Require Break Time for Nursing Mothers

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Posted in Wage and Hour

On October 26, 2010

Among the provisions of the sweeping federal health care legislation enacted earlier this year, the Patient Protection and Affordable Care Act (PPACA) amended Section 7 of the Fair Labor Standards Act to provide a new break-time requirement for nursing mothers who are non-exempt employees. A new fact sheet recently issued by the US Department of Labor’s Wage and Hour Division supplies employers with information regarding the requirements of the new law.

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