The Illinois legislature, on January 10, 2023, passed the Paid Leave for All Workers Act (PLFAW), which Governor Pritzker announced he will sign into law. Should the bill be enacted, Illinois would become the third state (after Maine and Nevada) to require private employers to provide employees with earned paid leave to use for any
Personal Liability for Wage Claims? Virginia Says ‘No,’ but Other States Say ‘Yes’
In October 2022, the Supreme Court of Virginia ruled that an individual cannot face personal liability as an “employer” under the Virginia Wage Payment Act (VWPA). The decision both clarifies Virginia law and serves as an important reminder for employers (and their managers and supervisors) that many states can impose personal liability on individuals for wage-and-hour claims.
Continue Reading Personal Liability for Wage Claims? Virginia Says ‘No,’ but Other States Say ‘Yes’
Michigan Wage and Hour Laws on the Move?
Employers with Michigan employees should remain vigilant to the likelihood of profound changes to the state’s wage-and-hour laws, including a new sick leave obligation, an increase in the minimum wage to $12.00 an hour, and a phase-out of the tipped employee wage classification. Pending the outcome of current litigation, these changes could take effect as soon as February 21, 2023.
On July 19, 2022, the Michigan Court of Claims[1] in Mothering Justice v. Nessel held that the state legislature’s amendment of two 2018 ballot initiatives was unconstitutional. The initiatives are the Improved Workforce Opportunity Wage Act (IWOWA) (the minimum wage law) and the Paid Medical Leave Act (PMLA), formerly the Earned Sick Time Act. Mothering Justice is currently stayed until February 20, 2023. On August 5, 2022, the Michigan attorney general filed a joint motion for expedited appeal. The Michigan Court of Appeals—and perhaps the state Supreme Court—will decide whether the IWOWA and the PMLA must be enacted as originally submitted to the legislature or as the legislature later amended them.
Failure to Pay Wages Due at Discharge Can Incur Triple Damages in Massachusetts
Late payment of final compensation just became significantly more expensive for employers with workers in Massachusetts. In an opinion on April 4, 2022, Reuter v. City of Methuen, the Massachusetts Supreme Judicial Court held that companies that fail to pay wages owed to employees on the day of their termination may be liable for
Massachusetts Eyes Gig Economy Driver Classification Ballot Initiative
On September 1, 2021, Massachusetts Attorney General Maura Healey approved two potential ballot initiatives (Initiative 1, Initiative 2) regarding the classification of app-based drivers. If passed, either initiative would enact the Relationship Between Network Companies and App-Based Drivers Act (the “Act”) and classify such drivers as independent contractors rather than employees.
Continue Reading Massachusetts Eyes Gig Economy Driver Classification Ballot Initiative
Illinois Nears 150% Increase to Wage and Hour Penalty
On May 25, 2021, the Illinois General Assembly approved an amendment to the Illinois Wage Payment and Collection Act (the Act). If approved by Governor J.B. Pritzker, the change would require employers who violate the Act to pay damages of 5% of the amount of any underpayment of wages, compensation, or wage supplements for each month following the date of payment during which the amount(s) owed remain unpaid. The new 5% penalty would represent a 150% increase to the existing 2% penalty.
Continue Reading Illinois Nears 150% Increase to Wage and Hour Penalty
Chicago Ordinance Prohibits Retaliation Against Employees for Time Spent Receiving COVID-19 Vaccinations
Chicago recently enacted an ordinance granting employees rights in connection with getting a COVID-19 vaccine. Employers should be aware of these key provisions:
- An employer may not take adverse action against an employee who gets a vaccine during working hours.
- Regardless of whether an employer mandates vaccination, it cannot mandate that employees receive the vaccine