New California Laws for 2023 and Beyond: What Employers Should Know

In 2022, California Gov. Gavin Newsom signed many laws impacting California employers. Some of the new laws became effective immediately and others, including some that were signed into law just weeks ago, take effect January 1, 2023, or later. These new laws address several topics, including supplemental paid sick leave, pay transparency, leaves of absence and fast-food restaurant employment standards.

As a reminder, the minimum wage in California is increasing to $15.50 per hour on January 1, 2023, for all employers — regardless of the number of workers employed by an employer. Also, many cities and local governments in California have enacted minimum wage ordinances exceeding the state minimum wage.

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What All Employers Can Learn From Most Recent Railway Dispute

On September 15, 2022, railroad companies and unions representing railway workers reached a tentative agreement to potentially prevent a strike that would have caused significant harm to the American supply chain and economy. While the unions’ membership must still ratify the agreement, the unions agreed not to strike during that process. Ratification votes will occur over the next 45 to 60 days. If any union does not ratify the agreement, then it may have the right to strike.

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Maryland Court of Appeals Holds State Law Wage Claims Despite Federal Wage Law

On July 13, 2022, Maryland’s Court of Appeals, the state’s highest court, held that state wage law claims for certain travel pay survive summary judgment despite the fact that such payments are not required under the federal Portal-To-Portal Act (PPA or the Act). The Court of Appeals interprets Maryland law as requiring wage payments for time spent waiting and traveling to a worksite if the waiting site is considered a prescribed workplace.

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Greater Wage and Overtime Protections for Pennsylvania Employees Effective August 5

In wake of recent legislation aimed at increasing employee rights and safeguards, the Pennsylvania legislature has promulgated new wage and hour regulations restricting employers and providing greater protections for employees. The new wage and hour regulations are effective on August 5, 2022. The new regulations impact two categories of employees: (1) tipped employees; and (2) salaried employees with a fluctuating workweek schedule.

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Update: Michigan Court Stays Decision to Reinstitute Higher Minimum Wage and More Generous Paid Sick Time Laws

Recently, we issued an alert explaining that, on July 19, 2022, the Michigan Court of Claims ruled that the “adopt-and-amend” strategy the Michigan Legislature used in 2019 to enact more business-friendly minimum wage and paid sick time laws was unconstitutional. The court also reinstituted the prior versions of these laws which meant Michigan employers were immediately subject to the more generous Earned Sick Time Act and the higher $12 per hour minimum wage for most employees.

However, on July 29, 2022, the same court issued a stay of its ruling through February 19, 2023 to allow employers and the relevant state agencies time to comply with and enforce the original, reinstituted laws. Accordingly, as of the writing of this alert, employers have until February 19, 2023 to comply with the Earned Sick Time Act (which requires more paid sick time than the now-stricken Michigan Paid Medical Leave Act) and provide at least a $12 per hour minimum wage for non-tipped employees, unless an appellate court or the Michigan Legislature acts before February 19.

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IDOL’s Proposed Rules for the Illinois Equal Pay Registration Certificate Provide Additional Insight for Covered Employers

In June 2021, the Illinois Equal Pay Act (IEPA) was amended to add a requirement for certain Illinois businesses to obtain an equal pay registration certificate (EPRC). The Illinois Department of Labor (IDOL) issued its long awaited proposed rules regarding the EPRC requirements on May 20, 2022. The proposed rules are subject to a 45-day comment period, which has now passed, followed by an internal review, and a public hearing on August 9, which may result in additional changes before they become final.

However, some Illinois employers have already received notice of a deadline to file their Application for Certification before the rules are finalized. Therefore, a careful review of the proposed rules is helpful as we anticipate issuance of the final rules. While the proposed rules largely mirror statutory requirements (the basics which were laid out in prior posts here and here), IDOL has clarified or provided additional information on a number of topics.

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