The U.S. Department of Labor (DOL) published a Notice of Proposed Rulemaking on August 30, 2023, which proposes revisions to the regulations issued under the Fair Labor Standards Act (FLSA). The proposed rule seeks to increase the federal minimum salary threshold required for employees to qualify as exempt employees to roughly $55,000 per year.
Day-Rate Rules Result in Overtime Pay for Exempt Highly Compensated Employee
The U.S. Supreme Court recently ruled in Helix Energy Solutions Group v. Hewitt that a daily-rate worker who earned over $200,000 annually was not exempt from the Fair Labor Standards Act’s overtime requirements. In an opinion authored by Justice Elena Kagan, the Court held that compensation based on a daily rate did not satisfy the
California’s FAST Recovery Act Establishes a Council With Broad Authority to Set Standards for Fast Food Workers
On September 5, 2022, California Governor Gavin Newsom signed the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act or A.B. 257). The FAST Recovery Act creates the Fast Food Council, responsible for establishing minimum standards for employees in the fast-food industry, including establishing minimum wages, working hours, and other working conditions related to health and safety in the fast-food industry. The FAST Recovery Act will take effect on January 1, 2023, and will become inoperative on January 1, 2029.
Department of Labor Announces Initiative to Monitor Warehouse and Logistics Worker Pay
This month the United States Department of Labor (DOL) issued a press release announcing its Warehouse and Logistics Worker Initiative (Initiative). See https://www.dol.gov/newsroom/releases/whd/whd20220208-1. The purpose of the Initiative is to increase the DOL’s scrutiny of the warehouse and logistics industry’s practices. Specifically, the Initiative is focused on ensuring that workers:
- Receive all legally earned wages, including minimum wage and overtime pay;
- Work in an environment safe from harassment and retaliation; and
- Are not prevented from taking legally protected leave.
West Hollywood Establishes Citywide Minimum Wage and Guaranteed Leave Provisions
The West Hollywood City Council unanimously approved a draft Ordinance establishing a citywide minimum wage and guaranteed leave during a November 3, 2021 City Council meeting that ended on November 4, 2021. The draft Ordinance can be found here and the City also issued a press release detailing the draft Ordinance.
The draft Ordinance sets forth the following phased minimum wage schedule:
| Effective Date | 01.01.2022 | 07.01.2022 | 01.01.2023 |
| Hotel Employees | $17.64 | Determined by Cost of Living Adjustment Estimated to be: $18.31 |
No Change |
| Employers of 50 or More | $15.50 | $16.50 | $17.50 |
| Employers of Less than 50 | $15.00 | $16.00 | $17.00 |
Continue Reading West Hollywood Establishes Citywide Minimum Wage and Guaranteed Leave Provisions
California’s Supreme Court Confirms the Retroactivity of the ABC Test Established in the 2018 Dynamex Decision
On January 14, 2021, the California Supreme Court decided Vazquez v. Jan-Pro Franchising International, Inc. The decision holds that the ABC test used to determine independent contractor versus employee status for purposes of California’s Wage Orders, announced in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903, applies retroactively. Read the full update