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

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

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 September 27, 2021, California Governor Gavin Newsom signed Assembly Bill No. 1003 (AB 1003) into law. The purpose of AB 1003 is to make the intentional theft of wages punishable as grand theft under the California Penal Code and, therefore, a felony in California. Previously, violations of wage and gratuity provisions were classified as misdemeanors.
Continue Reading California Law Makes Intentional Wage Theft a Jailable Offense

In Port of Tacoma v. Sacks, the Court of Appeals of the State of Washington recently held that all out-of-town employee travel time is compensable under state law. The decision confirms the Washington State Department of Labor & Industries’ (L&I) interpretation that all travel time related to work is compensable, regardless of when it

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 29, 2021, the U.S. Department of Labor (DOL) rescinded a final rule issued under the Trump administration that had narrowed the definition of a vertical joint employment relationship under the Fair Labor Standards Act (FLSA). There will be a greater likelihood that joint employment relationships will be found after the rescission takes effect on September 28, 2021.
Continue Reading Department of Labor Rescinds Joint Employer Test Under the FLSA

Did you know that July 29 was National Intern Day? Well, Washington’s Department of Labor and Industries (L&I) does and, in recognition, L&I recently released a bulletin reminding employers that sometimes a so-called intern is actually just another employee.
Continue Reading No Such Thing as a Paid Intern, Says Washington State Department of Labor & Industries

In California, the “regular rate of pay” is a term of art. Calculating it is not necessarily straightforward and much of the law in this area is counterintuitive, so employers should familiarize themselves with the basics to prevent missteps that can result in significant derivative penalties. An employee’s regular rate of pay provides the basis for overtime compensation and meal and rest period premium payments for nonexempt employees. Cal. Lab. Code § 510; Ferra v. Loews Hollywood Hotel, LLC, S259172 (Cal. July 15, 2021). Employers sometimes erroneously believe that a nonexempt employee’s hourly wage is the employee’s regular rate of pay. While the regular rate of pay can sometimes be the same as an nonexempt employee’s hourly wage, the correct answer is often more complex, and a series of formulas is required to derive a rate capturing all renumeration for hours worked by an nonexempt employee. Here is a refresher on how an employer should derive an employee’s regular rate of pay for a few common compensation types on a weekly basis.
Continue Reading California “Regular Rate of Pay” Refresher

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