Last week, Judge Mitchell Goldberg of the United States District Court for the Eastern District of Pennsylvania issued a decision in Verderame v. RadioShack Corp., finding that the “fluctuating workweek” method of overtime compensation violates the Pennsylvania Minimum Wage Act (“PMWA”).
Continue Reading Another Federal Court Finds “Fluctuating Workweek” Overtime Compensation Violates Pennsylvania Minimum Wage Act
Are Your Sales Employees Properly Classified as Exempt?
Many employers treat their sales employees as exempt from the Fair Labor Standards Act’s overtime and minimum wage requirements. Regardless of whether they pay them a salary, commissions, or some combination of both, employers often assume that all salespersons are exempt and not entitled to overtime. Depending on the circumstances, this assumption can be problematic and costly.
Continue Reading Are Your Sales Employees Properly Classified as Exempt?
Federal Court Holds That FLSA’s “Fluctuating Workweek” Method of Overtime Compensation Violates PA Law
In the wage and hour realm, even the most knowledgeable Pennsylvania employers often are unaware of potential compliance pitfalls presented by state law. Like the federal Fair Labor Standards Act (“FLSA”), the Pennsylvania Minimum Wage Act (“PMWA”) contains overtime and minimum wage requirements applicable to Pennsylvania employers. The PMWA is similar, but not identical, to the FLSA, and compliance with the FLSA does not always guarantee compliance with this state law.
Earlier this week, a federal court in Pennsylvania highlighted another area where the requirements of the FLSA and PMWA arguably differ, and therefore, could lead to problems for the unwary employer.
Continue Reading Federal Court Holds That FLSA’s “Fluctuating Workweek” Method of Overtime Compensation Violates PA Law
Proposed Legislation To Reverse Court Decision, Permit Pennsylvania Health Care Institutions to Rely on 8/80 Overtime Method
The federal Fair Labor Standards Act (“FLSA”) imposes a general requirement that employers pay overtime to non-exempt employees for hours worked in excess of 40 hours per workweek. Section 7(j) of FLSA provides, however, that certain employers in the health care industry can rely on the “8/80” method of overtime calculation instead of the standard 40 hour workweek approach.
A 2010 decision by the Philadelphia Court of Common Pleas called in to question whether the 8/80 method was permissible under the Pennsylvania Minimum Wage Act. On June 28, 2012, however, Pennsylvania Governor Tom Corbett was presented with legislation, seemingly in response to the court’s decision, that would amend the PMWA to permit use of the 8/80 method by health care institutions in the Commonwealth.
Continue Reading Proposed Legislation To Reverse Court Decision, Permit Pennsylvania Health Care Institutions to Rely on 8/80 Overtime Method
DOL Announces Introduction of Smartphone Application to Help Employees Track Work Hours
This post was contributed by Eric N. Athey, Esq., a Member in McNees Wallace & Nurick LLC’s Labor and Employment Law Practice Group.
Over the past several years, federal courts across the United States have experienced a surge in class action lawsuits alleging wage and hour violations by employers. In many of these
Pennsylvania Based Employees May Be Entitled to Overtime for work in Foreign Countries
Recently, the District Court for the Western District of Pennsylvania delivered some potentially bad news to Pennsylvania employers. In Truman v. DeWolff, Boberg & Associates, Inc., the Court held that an employee may be entitled to overtime payments for time worked in foreign countries under the Pennsylvania Minimum Wage Act and the Pennsylvania Wage Payment
Prohibition on Excessive Overtime in Health Care Act effective July 1, 2009
The Prohibition on Excessive Overtime in Health Care Act (Act 102) became effective on July 1, 2009. Health care facilities covered by the law include hospitals, ASCs, hospices, long-term care facilities and other inpatient facilities, but it excludes private physician offices and group practices. Employees protected by the law include all nonsupervisory employees involved in
Prohibition of Excessive Overtime in Health Care Act will Exacerbate Nursing Shortage
Clinical staffing problems for Pennsylvania healthcare facilities created by shortages of nursing professionals will be greatly exacerbated by a new law prohibiting mandatory overtime for employees engaged in direct patient care. The Commonwealth is already facing a nursing shortage, which is growing worse. According to the Health Resources and Services Administration (HRSA), an arm of the
FLSA causes Global Warming: Sixteen Other Reasons to Consider a 4-day Work Week
It’s no secret that the FLSA is anachronistic, but now it’s ruining the planet too. The 40-hour week divided into 5 consecutive workdays is a product of the FLSA, which was enacted in 1938. During the last 70 years, we have been consuming energy by commuting to work and operating facilities all the while pumping green
Bonus and other Lump Sum Payments to Nonexempt Employees may Impact Overtime Calculations
Employers sometimes pay bonuses to nonexempt employees without a thought of potential wage and hour compliance. Ann Bares at Compensation Force notes that Companies may pay a “lump sum” merit increase for employees who are topped out of a salary range. Other examples of lump sum payments include attendance and production bonuses, year-end bonuses and holiday gifts. Bonuses