Showing 6 posts from November 2016.

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Late yesterday, a federal court in Texas issued a temporary nationwide injunction delaying implementation of the Department of Labor's (the "DOL") new overtime regulations. The injunction will remain in effect until the Court can conduct a more in-depth review of the legal and constitutional challenges to the regulations. This eleventh-hour injunction comes as the regulations were set to go into effect in a little over a week on December 1, 2016. If not enjoined, the regulations would have extended overtime pay eligibility to an estimated 4.2 million more employees across the country, including over 100,000 employees in Michigan. This would have been accomplished by (more than) doubling the salary level requirement from $455 per week ($23,660 per year) to $913 per week ($47,476 per year) for employees who are to be considered exempt from federal overtime pay requirements under the so-called "white collar" exemptions to the Fair Labor Standards Act. Read More ›

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Now that the election is over and President-elect Trump will take office, employers may be wondering how they will be affected. Who Trump will nominate to the U.S. Supreme Court, what legislation will be passed by Congress, and what regulatory rollbacks will occur are currently all up in the air. One way he can make an immediate impact from day one is through Executive Orders (EOs). Executive Orders have long been used by Presidents to manage operations within the federal government. President Obama used them to make sweeping changes in requirements for federal contractors. President-elect Trump has indicated that reversing many of Obama’s Executive Orders will be among his first acts. Read More ›

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On November 16, 2016, a federal court in Texas issued an order permanently prohibiting the Department of Labor (DOL) from enforcing its new “Persuader Rule.” The DOL’s Persuader Rule interprets a provision of the federal Labor-Management Reporting and Disclosure Act (LMRDA) that requires employers and consultants hired to assist in communicating and advising employees of their rights and the law during a union campaign, to report their business relationship. Read More ›

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Franchisors should be wary following fast food giant McDonald’s recent agreement to pay $3.75 million to settle a lawsuit for wage and hour violations allegedly committed by one of its California franchisees. Nemeth Law attorney Kellen Myers explains that a federal lawsuit filed in 2014 by franchisee employees alleged that McDonald’s was liable as a joint employer under California law. In a ruling in August 2016, the court agreed that McDonald’s was not a joint employer but allowed the lawsuit to proceed on an alternative legal theory of “ostensible agency,” meaning it appeared to the employees that they were employed by McDonald’s. Following the court’s decision, McDonald’s chose to settle the lawsuit rather than proceed to trial. Read More ›

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Fast food giant McDonald’s recently agreed to pay $3.75 million to settle a lawsuit for wage and hour violations allegedly committed by one of its California franchisees. The federal lawsuit, filed in 2014 by franchisee employees, alleged that McDonald’s was liable as a joint employer under California law. Read More ›

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Nemeth Law’s employment law podcast looks at the business considerations and implementation strategies employers need to address to comply with the new Fair Labor Standards Act (FLSA) rules on overtime issued by the Department of Labor (DOL). Job duties test, salary basis test and salary level test: three tests and one big challenge for employers as the salary level test nearly doubles. FLSA changes go into effect Dec. 1.  What to do? Change workers from salary to hourly? Boost salary pay above the new standard level? Nemeth Law attorneys Mike Bommarito, Nick Huguelet and Kellen Myers look at the issues and the pros and cons of various solutions. Read More ›

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