LaborSphere, Author at Laborsphere

No More “No Rehire” Clauses in California Settlement Agreements

In most jurisdictions, it is standard practice to include a “no-rehire” clause when negotiating a settlement agreement in an employment dispute. “No-rehire” clauses bar the departing employee from seeking future employment with the employer or one of the employer’s related entities. If the former employee applies for a job with the employer or a related entity, the “no-rehire” clause allows the employer to reject the former employee’s application or require the former employee to withdraw the application for employment. In some instances, if the former employee is hired inadvertently, the “no-rehire” clause provides the employer a legitimate nondiscriminatory basis to rescind the offer. Although the use of “no-rehire” clauses is a common practice, California recently prohibited the practice and joined Vermont, which banned “no-rehire” provisions in 2018.

Continue reading “No More “No Rehire” Clauses in California Settlement Agreements”

DOL Final Overtime Rule Takes Effect January 1, 2020

On September 24, 2019 the U.S. Department of Labor (DOL) issued a revised Final Overtime Rule increasing the minimum salary threshold for overtime exemption to $35,568. The Final Overtime Rule takes effect on January 1, 2020.

The DOL’s Final Overtime Rule increases the weekly salary threshold for minimum wage and overtime exemption under the Fair Labor Standards Act (FLSA) from $455 to $684 (an increase in the annual minimum salary from $23,600 to $35,568). The Final Overtime Rule also increases the minimum annual exemption salary threshold for highly compensated employees (HCEs) from $100,000 to $107,432.

Continue reading “DOL Final Overtime Rule Takes Effect January 1, 2020”

Landmark Chicago “Fair Workweek” Ordinance Entitles Employees to Pay for Schedule Changes and Lost Work Hours

On July 23, 2019, the Chicago City Council passed the controversial Chicago Fair Workweek Ordinance (the Ordinance). Once Chicago Mayor Lori Lightfoot, a vocal proponent of the Ordinance, signs it into law, the Ordinance is scheduled to take effect for the majority of covered employers on July 1, 2020.

The Chicago Ordinance covers:
Continue reading “Landmark Chicago “Fair Workweek” Ordinance Entitles Employees to Pay for Schedule Changes and Lost Work Hours”

Arbitration Provisions: Applicable to Independent Contractors or Not?

A group of security workers for the National Football League urged Judge Andrew L. Carter, Jr. of the Southern District of New York to deny the NFL’s motion to arbitrate the group’s claims, arguing they never agreed to arbitrate statutory employment rights with the league. In Foran, et al. v. National Football League, et al., the group of security workers sued the NFL in November 2018 for unpaid overtime wages under the Fair Labor Standards Act (FLSA), among other claims, alleging the NFL misclassified them as independent contractors. The NFL moved to compel arbitration arguing the security workers’ claims are covered by the arbitration provision in their independent contractor agreements. The plaintiffs, in opposition, contend that unless the arbitration provision specifically includes a waiver of statutory claims under the FLSA, the NFL cannot compel arbitration of the claims. The motion remains pending before Judge Carter.

Continue reading “Arbitration Provisions: Applicable to Independent Contractors or Not?”

Philadelphia Enacts a Fair Workweek Law

On December 6, 2018, the Philadelphia Council voted 14-3 to pass a Fair Workweek bill, which Mayor Kenney is expected to sign. Once signed, the ordinance would take effect on January 1, 2020, and is expected to impact roughly 130,000 workers. The Fair Workweek ordinance will apply to employers with more than 250 employees and over 30 locations (including Philadelphia) worldwide. It will require employers in the retail, fast-food, and hospitality industries to provide advance written notice of work schedules and predictability pay to their service workers. Other cities that enacted similar Fair Workweek laws include New York, San Francisco, San Jose, Emeryville and Seattle.

U.S. Department of Labor Extends Expiration of FMLA Forms Through August 2021

The U.S. Department of Labor (“DOL”) Wage and Hour Division recently announced that its model Family and Medical Leave Act (“FMLA”) notices and certification forms are valid for another three years, until August 31, 2021. There is nothing new in the updated model FMLA forms, other than a new expiration date, which is located on the top right corner of the forms.

Employers who use the DOL’s model FMLA forms can access them at the following links:

Continue reading “U.S. Department of Labor Extends Expiration of FMLA Forms Through August 2021”