Wage & Hour

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[With special thanks to our summer associate Whitney Chukwurah for her contribution to this post.]

All private employers with 100 or more employees in the US and certain federal contractors with 50 or more employees in the US must report data on race/ethnicity and gender across job categories in their annual EEO-1 filings. As previously reported (HERE), in 2016, under the Obama Administration, the Equal Employment Opportunity Commission revised the EEO-1 form to require certain employers to report W-2 wage information and total hours worked (referred to as Component 2 Data) for all employees by race, ethnicity and sex within 12 EEOC created pay bands.

The implementation of the revised EEO-1 form has been subject to litigation; however, covered employers now have until September 30, 2019 to provide EEOC with pay data.Continue Reading New EEOC Guidance On Submitting Component 2 Pay Data

On July 10, 2019, the California Senate Labor Committee voted in favor of Assembly Bill (AB 5). As we previously reported (see HERE), AB 5 would make it harder for companies to rely on independent contractors because it presumes a worker is an employee unless a hiring entity passes a difficult three-part test. Supporters…

California is known as one of the most progressive, pro-employee states in the country. But if the last several months are any indication, Illinois is quickly catching up.

Here’s a quick overview of what’s happening in the prairie state:

Illinois Wage Payment and Collection Act   

What’s New? As of January 1, 2019, employers must reimburse employees for all “necessary” expenses. So what’s a necessary expense? Anything required of the employee in the discharge of his/her employment duties that “inure to the primary benefit of the employer.” Computers, cell phones, uniforms, etc. may all constitute “necessary” expenses that the employer is required to reimburse.

Takeaway: Employers should review their policies, job descriptions, and third party contracts to determine which positions/roles may result in necessary expenditures.Continue Reading Is Illinois The New California For Employers?

On May 14, the European Court of Justice ruled that Member States are required to impose an obligation on employers to establish an objective, reliable and accessible system that keeps a daily record of the hours worked. However, Member States have some discretion as to the system that is used to record working time, which…

Hiring Entity:  When are gig workers employees?

Four Government Agencies & Courts:  It depends!

Trying to track the employment status of gig workers will make your head spin. Contractors? Employees? Super heroes?

In the last few weeks, four federal and California state agencies and courts — the US Department of Labor, the National Labor Relations Board, the Ninth Circuit Court of Appeals and the California Labor Commissioner — have all weighed in on the debate. And, the answer is — it depends.

Follow our script below to help make sense of the patchy legal landscape.Continue Reading The Essential Question Of The Gig Economy

Last month, we reported that a federal court in Washington D.C. lifted the government’s stay of the revised EEO-1 form that requires companies to submit summary wage data by race/ethnicity and gender. Following the court’s order, uncertainty loomed concerning whether employers would need to include the additional data by the current EEO-1 Report deadline…

On March 28, 2019, the US Department of Labor announced a proposed rule to clarify that certain types of compensation and benefits can be excluded from an employee’s “regular rate” of pay, which is used to calculate overtime under the FLSA. This announcement follows the DOL’s recent proposal to increase the minimum salary requirements for the FLSA’s white-collar overtime exemptions, continuing the DOL’s efforts to update and modernize FLSA regulations.
Continue Reading US DOL Proposal To Clarify “Regular Rate” For Modern Workplace Practices

With thanks to our colleague Lois Rodriquez (Baker McKenzie Spain)

Last month, the Spanish government passed several bills that will impact all companies with headcount in Spain – regardless of their size. These changes relate to gender equality plans, and the obligation for all companies to maintain daily records of employee work hours, including the specific beginning and ending times of each employee’s working day.
Continue Reading Expansion Of Time Recording Obligation In Spain

Employers may be required to disclose aggregate pay data in their annual EEO-1 filings as early as May 31, 2019.

On March 4, 2019, a federal court in Washington D.C. lifted the Office of Management and Budget’s (OMB) stay of the revised EEO-1 form that requires companies to submit summary wage data by race/ethnicity and gender. While we expect there may be further challenges and/or delays to the implementation of the revised EEO-1 form, taking a conservative approach means that companies should plan as though they need to report pay data by the current May 31, 2019 deadline.Continue Reading US Employers Prepare For Reinstated EEO-1 Pay Data Reporting

For 15 years, the minimum salary threshold required for US workers to qualify for the Fair Labor Standards Act’s “white-collar” exemptions has been $23,660 per year.

On March 7, 2019, the Department of Labor issued a new overtime proposal increasing that minimum salary threshold to $35,308 per year. The DOL estimates the new rule will take effect in January 2020.Continue Reading DOL Proposes New OT Exemption Threshold At $35K