On January 20, 2022, members of the California Assembly voted 43-13 to approve amendments to Assembly Bill 257, which seeks to enact the Fast Food Accountability and Standards Recovery Act (known as the “FAST Recovery Act”). Initially introduced on January 15, 2021, AB 257 would establish a Fast Food Sector Council (“Council”) charged with establishing sectorwide “minimum standards on wages, working hours, and other working conditions related to the health, safety, and welfare of, and supplying the necessary cost of proper living to, fast food restaurant workers, as well as effecting interagency coordination and prompt agency responses in this regard.”
Continue Reading California Assembly Amends FAST Recovery Act Proposal

While President Biden’s vaccine mandate wends its way through the courts, another of the administration’s early initiatives impacting federal contractors is set to go into effect early next year.

On November 22, 2021, the Department of Labor (DOL) published its Final Rule implementing Executive Order 14026, which raises the minimum wage requirement for anyone working “on or in connection with” a covered federal contract from $10.95 to $15.00 per hour. The new minimum will also increase annually, starting January 1, 2023, to an amount determined by the Secretary of Labor based on inflation. The published rule explains that employees perform “on” a contract if they directly perform the specific services called for by the contract and perform “in connection with” a contract if their work activities are otherwise necessary to the performance of the contract. Employees performing “in connection with” covered contracts are excluded from coverage if they spend less than 20% of their work hours in a particular workweek doing covered work.
Continue Reading Minimum Wage Increases to $15 for Federal Contractors Beginning January 30, 2022

Clarification Regarding Tip Pool Participation for Managers and Supervisors

The U.S. Department of Labor (DOL) recently clarified the rules under which managers and supervisors can participate in a mandatory tip pool. In a final rule effective November 23, 2021, the DOL clarified that managers and supervisors are permitted to contribute tips to a mandatory tip

On October 18, 2021, Plaintiff Ysa Santana Reynoso (Reynoso), a former employee of pork processor Hatfield Quality Meats, Inc. (Hatfield), filed a class action lawsuit before a state court in Pennsylvania against Hatfield seeking unpaid wages under the Pennsylvania Minimum Wage Act (PMWA) for time spent undergoing mandatory COVID-19 screenings.

Continue Reading Employee Asserts Claims of Uncompensated COVID-19 Screening Practice

On September 22, 2021, Governor Gavin Newsom signed Assembly Bill No. 701 (“AB 701”), which makes it unlawful for employers to require nonexempt employees at warehouse distribution centers (“Covered Employee” or “Covered Employees”) to meet production quotas that prevent compliance with meal or rest periods, use of bathroom facilities (including reasonable travel time to and from bathroom facilities), or occupational health and safety laws (“Prohibitive Production Quota”). Employers are also prohibited from taking adverse action against Covered Employees for failing to meet a Prohibitive Production Quota. AB 701 will take effect January 1, 2022 (the “Effective Date”).

Continue Reading California Takes Aim at Productivity Quotas at Warehouse Distribution Centers

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

In an unpublished opinion, the Ninth Circuit held that an employer is not required to pay employees for time spent undergoing government-required security checks enforced by a governmental body to access the worksite.

Continue Reading Ninth Circuit Says Time Spent in Airport Security Lines Is Not Compensable Work Time

On July 21, 2021, the U.S. Department of Labor announced a “ Notice of Proposed Rulemaking to establish standards and procedures to implement and enforce Executive Order 14026, ‘Increasing the Minimum Wage for Federal Contractors’, signed by President Biden on April 27, 2021.” The proposed rule would:
Continue Reading The U.S. Department of Labor Proposes an Increased Minimum Wage for Workers on Government Contracts

On July 15, 2021, the California Supreme Court decided Jessica Ferra v. Loews Hollywood Hotel, LLC, S259172 (Cal. S.Ct. July 15, 2021). The question before the Court was “whether the Legislature intended ‘regular rate of compensation’ under section 226.7(c) to have the same meaning as ‘regular rate of pay’ under section 510(a), such that the calculation of premium pay for a noncompliant meal, rest, or recovery period, like the calculation of overtime pay, must account for not only hourly wages but also other nondiscretionary payments for work performed by the employee.” Id. at 1.
Continue Reading California Supreme Court Rules Meal and Rest Period Premium Pay Is Calculated in the Same Manner as Calculations for Overtime Regular Rate of Pay

On June 21, 2021, the U.S. Department of Labor (DOL) announced a Notice of Proposed Rulemaking to limit the amount of non-tip producing work that a tipped employee can perform when an employer is taking a tip credit. In other words, when an employee is working in a tipped occupation and the employee has performed a substantial amount of non-tipped labor (more than 20% or 30 consecutive minutes), the employer can no longer take a tip credit and must pay the full federal minimum wage to the worker.
Continue Reading Tips Anyone? The Department of Labor Proposed Changes to Tip Credits