The U.S. Department of Labor Announces Final Rule to Increase Minimum Wage for Certain Federal Contractors

On November 22, 2021, the U.S. Department of Labor (DOL) finalized a rule to increase the hourly minimum wage for employees of certain federal contractors beginning January 30, 2022. The final rule implements Executive Order 14026, which President Joe Biden signed earlier this year.

The final rule requires certain federal contractors to pay workers on government contracts at least $15 per hour beginning January 30, 2022. After 2022, the minimum wage will be adjusted annually for inflation at a rate set by the Secretary of Labor.

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Colorado Department of Labor and Employment Proposes New Language for Wage and Hour Rules

The Colorado Department of Labor and Employment (CDLE) has proposed revised language for the wage and hour rules that, if adopted, will become effective as early as January 1, 2022. Specifically, the Colorado Overtime and Minimum Pay Standards (COMPS) Order and Wage Protection Rules would become effective January 1, 2022 if adopted. The revisions to the Colorado Whistleblower, Anti-Retaliation, Non-Interference, and Notice-Giving (WARNING) Rules are anticipated to be become effective in early 2022 but a definitive effective date has not been determined. The proposed changes include revisions to the COMPS Order, Wage Protection Rules and WARNING Rules as well as the addition of new rules such as the 2022 Publication and Yearly Calculation of Adjusted Labor Compensation (PAY CALC) Order and the Agricultural Labor Conditions Rules (effective May 1, 2022 if adopted). Below is a summary of notable proposed revisions to the existing rules.

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New California Laws for 2022: What Employers Should Know

California Gov. Gavin Newsom signed several laws in 2021 that are impacting or will impact how employers interact with and manage their employees. From confidentiality and nondisparagement provisions in settlement agreements to production quotas in warehouses, we examine the laws that have gone into effect and which laws employers need to begin preparing for over the next one to two years.

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State & Local Employment Law Developments: Q3 2021

2021 continues the trend of increasing regulation of the workplace by state and local governments. Although it is not possible to discuss all state and local laws, this update provides an overview of recent and upcoming legislative developments to help you and your organization stay compliant. (Please note that developments specifically related to minimum wage rates and COVID-19 are not included.)

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DOL Extends FLSA Final Joint Employment Rule Effective Date

The federal Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least minimum wage plus overtime compensation. If an employee is unpaid or underpaid — due to a calculation error or an employee’s unreported time worked, including remote work arrangements during the pandemic — the employee may recover back pay, liquidated damages, attorneys’ fees and litigation costs. If two or more employers have a relationship with an employee — for example, if an employee works for a staffing agency and is assigned to work at the agency’s customer or an employee performs work for two with common ownership or management — the law may deem the employers to be joint employers with joint and several liability, depending on the facts. If one joint employer fails to comply with the FLSA, both joint employers may be held liable. Different laws use different tests for joint employment.

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California Court of Appeal Upholds Dismissal of ‘Unmanageable’ PAGA Claim

On September 9, 2021, the Second District of the California Courts of Appeal ruled in Fred Wesson v. Staples the Office Superstore, LLC that trial courts have “inherent authority” to strike claims under the California Private Attorneys General Act (PAGA) if they will not be manageable at trial. As the first precedential decision on this issue from a California court, this case provides employers with a welcome potential defense to some PAGA claims.

Facts and Background

Under PAGA, employees in California are empowered to bring claims on behalf of other employees (and the state of California) for violations of the California Labor Code. Critically, plaintiffs need not meet class action requirements or go through class action procedures to bring claims under PAGA on behalf of other employees. As a result, unlike class actions, employers have had relatively limited recourse to challenge wide-reaching PAGA claims, sometimes brought on behalf of hundreds or thousands of employees.

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