Wage & Hour

Subscribe to Wage & Hour via RSS

In last night’s State of the Union Address, President Barack Obama announced that he planned to sign an Executive Order requiring that employees of federal contractors be paid at least a minimum wage of $10.10 per hour. This represents a $2.85 increase over the current federal and Pennsylvania minimum wage of $7.25 per hour. Specifically, the President said, “In the coming weeks I will issue an executive order requiring federal contractors to pay their federally-funded employees a fair wage of at least $10.10 an hour because if you cook our troops’ meals or wash their dishes, you should not have to live in poverty.”…
Continue Reading President Obama Announces Raise in Minimum Wage for Employees of Federal Contractors

On Monday, January 27, 2014, the United States Supreme Court unanimously ruled that a group of unionized steel workers at U.S. Steel Corporation did not need to be compensated for the time they spent “donning and doffing” safety gear before and after work. Justice Antonin Scalia wrote for the majority in Sandifer v. United States Steel Corp., Case No. 12-417 (Jan. 27, 2014), a case he described as requiring the Court to determine the meaning of the phrase “changing clothes” under section 203(o) of the Fair Labor Standards Act (FLSA). Although section 203(o) applies only to employers with collective bargaining agreements, certain aspects of the decision could have broader implications in “hours worked” cases under the FLSA.
Continue Reading Supreme Court Rules That “Donning and Doffing” Protective Gear Subject to Collective Bargaining; Leaves Door Open for Future Claims

Recently, Adam R. Long, a Member in McNees Wallace & Nurick LLC’s Labor and Employment Law Group prepared a White Paper regarding Wage and Hour Compliance Priorities for 2014.

Employers should conduct regular and comprehensive wage and hour audits that examine all facets of the employer’s pay practices to ensure compliance with the myriad wage and hour laws. That said, we recognize that HR professionals, in-house counsel, and senior management have very limited time and resources to devote to wage and hour compliance. This complimentary white paper discusses specific areas where employers should focus their wage and hour compliance efforts in 2014.
Continue Reading Wage and Hour Compliance Priorities for 2014

In a recent blog post, we discussed the legal issues associated with employer use of payroll debit cards in lieu of printed paychecks. We concluded that because of the lack of federal and state regulatory guidance on the issue, it was unclear whether employers could elect to pay wages exclusively through payroll debit cards.

Last week, the federal Consumer Financial Protection Bureau (CFPB) issued Bulletin 2013-10 (pdf) on the subject of payroll card accounts.
Continue Reading CFPB Weighs in on Employer Use of Payroll Cards

Recently, the practice of paying employees via payroll debit cards came under fire when an employee filed a class action lawsuit against her employer, a McDonalds’ franchisee, alleging that payment of wages via a Chase Payroll Card violated the Pennsylvania Wage Payment and Collection Law (“PWPCL”). The employee claimed that the card’s fees cut into her wages, potentially bringing her pay below minimum wage, and that she and other class members were not being “paid in lawful money” as required by the PWPCL. The case currently is pending in Luzerne County, Pennsylvania.

As demonstrated by the lawsuit recently filed in Luzerne County, it remains unclear whether the use of such cards complies with Pennsylvania law.
Continue Reading Taking the Check Out of Paycheck: The Legality of Payroll Debit Cards

Summer has finally arrived. While many of us will soon become consumed with pool parties, backyard barbeques, and well-deserved vacations, a new crop of summer interns is just beginning their first endeavor in the working world with the hope of making a lasting impression on prospective employers in their chosen fields.

However, it is becoming an increasingly risky proposition for employers to take on unpaid interns. In fact, in just the past few days, Warner Music Group, Atlantic Records, and media giant Condé Nast have all been sued by former interns who claim that they should have been compensated for their internships.
Continue Reading Unpaid Internships May Cost Your Business Dearly in the Long Run

McNees Wallace & Nurick LLC’s Alcoholic Beverage and Liquor License Practice Group recently published a Liquor Law Update, which can be accessed by clicking here.  The Update contains an article on employee tip pools that readers may find interesting. 

Whether you need to acquire a liquor license, sell a liquor license, keep a liquor license…

With spring upon us and warmer temperatures hopefully just over the horizon, many employers are beginning to recruit high school students for after-school and summer employment. When doing so, employers must be aware of specific rules under both federal and state laws regarding the employment of minors (i.e., individuals under 18 years of age).

Earlier this year, the Pennsylvania Child Labor Act (“PCLA” or “Act”) went into effect. The Act is designed to clarify the state law and make it consistent with child labor standards imposed under the federal Fair Labor Standards Act (“FLSA”). For all intents and purpose, compliance with the PCLA will satisfy the employer’s obligations under the FLSA.
Continue Reading PA Child Labor Act Modernizes and Clarifies Work Hour Restrictions for Minors in Time for Summer Hiring Season

The Department of Labor (DOL) routinely investigates and audits employers to ensure compliance with a variety of important labor and employment laws. Historically, wage and hour (overtime) compliance under the Fair Labor Standards Act has been the most common subject of the DOL’s enforcement efforts.

Fueled by additional resources, funding and staffing, the DOL is increasing its enforcement efforts both in terms of frequency and scope. This concerning trend means that employers can expect an increase in the number of investigations and that such investigations, once initiated, will cover a broader range of compliance issues and dig deeper into those issues under review. In this regard, our clients are reporting that, in addition to typical wage and hour issues, expanded DOL inquiries as a matter of course now include review of other laws, such as the Family and Medical Leave Act, and even the Patient Protection and Affordable Care Act. It is also common for DOL investigations to “spread,” resulting in the inquiry ultimately moving into areas other than the initial issue under review.
Continue Reading Investigations/Audits of Employers by DOL Increase and Expand in Scope