Can a Company Trade Services for Pay?
The Situation: A fitness studio offers its customers the opportunity to trade a free monthly membership for a few hours of cleaning each week. It is a completely voluntary arrangement. Could this later come back to bite the fitness studio?…READ MORE
Even if Staffing Company is Paying Employees, You Could be on the Hook for Unpaid Wages
The Situation: You go through a temporary staffing company for a certain group of employees and that company takes care of paying the employees. If the staffing company fails to properly pay these employees, what type of consequences could you face?…READ MORE
Training Time—Compensable or Not?
The Situation: You have a new business that will require a number of employees with a particular skill set. You find a way to get a local community college to offer a free training course focused on this particular skill. At the conclusion of the course, you open for business. Can the employees make a claim that they should have been paid for the time spent learning the skill at the community college?…READ MORE
Tipped Employees Must Have Actual Notice of Use of Tip Credit
The tip credit permitted under the Fair Labor Standards Act (“FLSA”) has always presented challenges to restaurants and other employers seeking to apply it correctly. Last month, the First Circuit addressed the tip credit and the question of the type of notice which must be given to employees regarding its use in the case of Perez v. Lorraine Enters., No. 13-1685 (1st Cir. Oct. 1, 2014). The First Circuit ruled that constructive knowledge of the application of the tip credit is not enough, but rather employees must have actual notice that tips are to be treated as part of their wages.…READ MORE
Executive Order 13658 “Establishing a Minimum Wage for Contractors” Final Rule
On Tuesday, the U.S. Department of Labor issued the final rule that raises the minimum wage for workers on federal contracts to $10.10 an hour. The 338 page rule, which takes effect on January 1 2015, implements Executive Order 13658. The final rule provides for employers guidance as to which contracts and which employees are covered. Contractors must fulfill certain obligations to comply with the new minimum wage provisions, including recordkeeping requirements. The rule also establishes an enforcement process and will protect the right of workers to receive the new minimum wage.…READ MORE