Articles and Blogs

In the restaurant industry, it’s pretty common for fast food and sandwich shop operators—think Wendy’s, Chick-fil-A, Subway, etc.—to run their companies based on a franchise model. Under this model, which is somewhat analogous to a large corporation that has a main “corporate office” and satellite locations scattered around the country, the franchisor owns the... READ MORE

The Department of Labor’s Wage and Hour Division recently issued three new opinion letters, the first new opinion letters published since 2010. Opinion letters are, according to the Department of Labor, “an official, written opinion by the Wage and Hour Division of how a particular law applies in specific circumstances presented by an employer,... READ MORE

All Work and No Pay A recent provisionally approved settlement in a wage and hour class and collective action case serves as an important reminder for employers of the risks and potential costs of hiring interns to perform work without pay.  In Tart et al. v. Lions Gate Entertainment Corp. et al, two plaintiffs... READ MORE

On July 15, 2015, the U. S. Department of Labor (“DOL”) issued a Wage and Hour Division Administrator’s Interpretation that reasserts the broad definition of employee such that employers will rarely find that the individuals who work for them can be classified as independent contractors. This interpretation, although not having the effect of law, does indicate... READ MORE

On February 12, 2014, President Obama signed Executive Order 13658, which raises the minimum rate of pay for federal contractors to $10.10 per hour.  The rate is subject to increases each year in relation to increases to the Consumer Price index.  This bold action by the president came after he was unable to convince... READ MORE

It doesn’t happen often but when it does it can be a very big deal – personally.  Because of how the term “employer” is broadly defined by the Fair Labor Standards Act (“FLSA”) (which deals with wages, hours and overtime), it has long been possible for a manager to be considered an “employer” and... READ MORE

The Court Turns the Tide of the Epidemic For several years now there has been a veritable epidemic of class and collective actions filed against employers claiming that employees were not paid for working through their meal periods.  These cases arose frequently where employees were subject to automatic meal period deductions of 30 minutes... READ MORE

Automatic meal period deductions – A common practice Some good news for employers.  In an important victory for employers, the U.S. Court of Appeals for the Sixth Circuit, in Frye v. Baptist Memorial Hospital, recently affirmed the decision of the Western District of Tennessee to decertify a collective action brought under the FLSA challenging... READ MORE

Suppose one of your supervisory employees – for over eight years – clocked in 15 to 45 minutes before the start of her shift 5 AM early morning shift and spent most of that time doing tasks related to her normal duties.  Then, your employee sues you and claims that she has been underpaid... READ MORE