News & Analysis as of

Unpaid Wages Wage and Hour

Venable LLP

Third Circuit to Employers: Beware this 22 Million Dollar Mistake

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The Department of Labor (DOL) recently brought suit against East Pennsylvania Manufacturing (East Penn) under the Fair Labor Standard Acts (FLSA) for allegedly failing to pay thousands of employees for time they spent...more

FordHarrison

EntertainHR: Mr. Monk Doesn’t Pay His Employee

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There is something interesting about watching an old, beloved show for the first time years after the release of its final season. You miss the excitement of watching new episodes contemporaneously with other fans....more

Vedder Price

Seventh Circuit Weighs in on Jurisdiction in FLSA Collective Cases

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On August 16, 2024, a divided Seventh Circuit panel held that a court needs to establish personal jurisdiction over each individual member of a Fair Labor Standards Act (“FLSA”) collective, further contributing to an existing...more

Fisher Phillips

When is a Mid-Level Manager Personally Liable for Wage Violations? 3 Steps for Employers After Recent Appeals Court Ruling

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A hotel manager was recently held individually liable for violations of federal wage and hour law under a broad definition of “employer.” Although the ruling applied to a unique set of facts – including that the manager was...more

Fox Rothschild LLP

Another Healthcare System Hit With (Yet) Another Automatic Deduction FLSA Class Action

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I have blogged about these automatic deduction cases, but they nevertheless keep popping up with disturbing regularity. In another example of this phenomenon, employees have sued a Michigan healthcare employer, alleging...more

Fox Rothschild LLP

How Many Times Do We Have To Go Through This? Another Call Center Boot-Up FLSA Class Action

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It seems every week another call center case pops up. These are extremely dangerous cases for employers and that is why I keep writing (or, harping) about them, as a warning to employers, not only those who operate call...more

Epstein Becker & Green

New Jersey Wage Theft Act Does Not Apply Retroactively, Per the State Supreme Court

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On May 15, 2024, the New Jersey Supreme Court held in Maia v. IEW Construction Group that both the six-year look-back period and liquidated damages provided by the state Wage Theft Act (WTA) do not apply retroactively....more

Husch Blackwell LLP

When Is a Raise Considered Earned in Minnesota?

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The beginning of a new year, or new fiscal year, can often bring changes to a company’s workforce. Many businesses will perform or complete performance reviews and implement compensation changes based on the prior year. The...more

Parker Poe Adams & Bernstein LLP

Employees Not Automatically Entitled to Attorneys' Fees Under North Carolina Wage and Hour Act

When litigating claims under the federal Fair Labor Standards Act (FLSA), litigants are aware of long-standing case law that essentially awards a prevailing plaintiff with their attorneys’ fees absent extraordinary...more

Saiber LLC

New Jersey Supreme Court Finds 2019 Amendments to the Wage Payment Law and Wage and Hour Law are Not Retroactive

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In a recent unanimous decision by the New Jersey Supreme Court in Christopher Maia v. IEW Construction Group, the seven-judge panel reversed the prior judgment of the Appellate Division and held that the August 6, 2019,...more

Sheppard Mullin Richter & Hampton LLP

California Supreme Court Confirms the “Knowing and Intentional” Standard of California’s Wage Statement Law Requires a “Knowing...

In Naranjo v. Spectrum Security Services, the case’s second appearance before the California Supreme Court in two years, the Supreme Court confirmed that an employer does not incur civil penalties for failing to report unpaid...more

Ballard Spahr LLP

New Jersey “Wage Theft”  Amendments Apply Only Prospectively

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In a unanimous decision, on May 15, 2024, the New Jersey Supreme Court held that the state’s amendments (Chapter 212) to the Wage Payment Law (WPL) and the Wage and Hour Law (WHL) apply prospectively, and therefore plaintiffs...more

Fox Rothschild LLP

New Jersey Supreme Court Limits Wage Law Amendments to Prospective Application

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The New Jersey Supreme Court has ruled that amendments to the state’s wage and hour laws passed in 2019 cannot be applied retroactively. As a result, the provisions in the amendments — including imposition of liquidated...more

Amundsen Davis LLC

California’s Supreme Court Makes It Harder For Employees to Recover Penalties In Wage Statement Claims

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On May 6, 2024, California LawCalifornia’s Supreme Court, in a rare and surprising “employer friendly” decision, held that an employer can avoid penalties under California’s wage statement law, Cal. Lab. Code § 226, if it...more

Seyfarth Shaw LLP

Good Faith Defense Applies To Wage Statement Penalty Claims

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The California Supreme Court concluded that the “good faith” defense applies to claims seeking to impose penalties under California Labor Code section 226. An employee must show that an employer’s failure to comply with...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Supreme Judicial Court Rejects Compensation Plan Allocating Commissions to Overtime and Premium Pay

On March 28, 2024, in Sutton v. Jordan’s Furniture, Inc., the Massachusetts Supreme Judicial Court (SJC) upheld a Massachusetts Superior Court decision finding the furniture retailer’s commission-based compensation scheme...more

Seyfarth Shaw LLP

Washington Healthcare Company Ordered to Pay Workers Almost $100M for Missed Meal Breaks, Unpaid Time

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Last week, a Washington healthcare company was ordered to pay 33,000 workers $98.3 million in damages in a class action related to its meal break and timeclock rounding practices. The vast majority of the awarded damages...more

Venable LLP

Staying Compliant - Avoiding Wage Theft in New York

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In October 2023, we wrote an alert detailing an amendment to New York's Penal Code that added wage theft as a means of committing criminal larceny. This amendment, along with the creation of a specialized Worker Protection...more

Wiley Rein LLP

Breach of Contract Exclusion Bars Coverage for Judgment Rendered in Employment Dispute

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The United States District Court for the Eastern District of Louisiana, applying Louisiana law, has held that an insurer does not need to cover a monetary judgment rendered in favor of two former employees of the insured...more

Troutman Pepper Locke

Arizona, Kentucky, and Hawaii Become Latest States to Introduce Legislation to Regulate Earned Wage Access Products

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Recently, Arizona, Kentucky, and Hawaii have jumped on the bandwagon to regulate earned wage access (EWA) products and services. Arizona’s proposed bill makes clear that EWA services are not considered to be loans or money...more

Mintz - Employment Viewpoints

New York Court Puts Breaks on Manual Worker Weekly Wage Payment Claims

In a hotly anticipated decision, the New York State Appellate Division, Second Department held in Grant v. Global Aircraft Dispatch, Inc. that manual workers do not have a private right of action under the New York Labor Law...more

Seyfarth Shaw LLP

New York Weekly Pay Update: Governor and Appellate Court Seek to Scale Back Litigation

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Seyfarth Synopsis: A legislative proposal by the Governor, and a new appellate court decision, may have significant ramifications for weekly pay litigation in New York state and federal courts....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Sixth Circuit Asked to Resolve District Court Split on Ohio Class and Collective Action Rules

On January 3, 2024, the defendant in Heppard v. Dunham’s Athleisure Corporation filed an interlocutory appeal to the U.S. Court of Appeals for the Sixth Circuit, arguing that the U.S. District Court for the Eastern District...more

Constangy, Brooks, Smith & Prophete, LLP

Auto-deductions for meal breaks. Game winner for employers, or loser?

It’s the fourth quarter. Three seconds are left on the clock, and your team is losing by one point. Your place kicker confidently trots onto the field to attempt the game-winning field goal. As he does, the TV announcer says,...more

Carlton Fields

SDNY Grants Motion to Compel Arbitration of Employee’s Discrimination and Retaliation Claims

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In Marino v. CVS Health, the U.S. District Court for the Southern District of New York found defendant CVS Health’s “arbitration of workplace legal disputes policy” and related arbitration agreement compelled arbitration of...more

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