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
Pennsylvania Minimum Wage Act
Are Your Sales Employees Properly Classified as Exempt?
By Lee Tankle on
Posted in Wage & Hour
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?
The FLSA Applies to Public Sector Employers, Too
By Adam Santucci on
Posted in Public Employers
In a recent decision, a class of correctional officers at a county correctional facility filed a class action lawsuit alleging that they were not compensated for time spent working before and after their scheduled shifts. The plaintiffs sought damages under both the Fair Labor Standards Act and Pennsylvania Minimum Wage Act. The Court issued a decision that (1) dismissed the plaintiffs’ PMWA claims, but (2) granted the plaintiffs’ motion to conditionally certify a collective action based on their claims under the FLSA. The Court concluded that government entities were not covered by the PMWA and dismissed the plaintiffs’ state law claims. However, the Court also held that plaintiffs met their initial burden of showing that the proposed class members were similarly situated and conditionally certified the class for purposes of an FLSA collective action.
Continue Reading The FLSA Applies to Public Sector Employers, Too
Proposed Legislation To Reverse Court Decision, Permit Pennsylvania Health Care Institutions to Rely on 8/80 Overtime Method
By Jodi Frankel on
Posted in Wage & Hour
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