In a major victory for employers, the Supreme Court of the United States has ruled that individualized arbitration clauses in employment contracts are enforceable. In Epic Systems Corp. v. Lewis, the Supreme Court determined that the Federal Arbitration Act is compatible with, rather than opposed to, other federal statutes such as the National Labor Relations Act. The most recent Justice, Neil Gorsuch, wrote the 5-4 majority opinion. The decision provides that employers can insist on individualized arbitration clauses in their contracts with employees and preclude employees from bringing class or collective actions in court. The employees in the case had …
Changes to Ohio Workers’ Compensation Law
On June 30, 2017, Gov. John Kasich signed H.B. 27 into law, not only funding the Ohio Bureau of Workers’ Compensation (BWC), but also enacting a number of substantive changes. The new law became effective September 29, 2017. Below are some of the important substantive changes that are now law: Statute of limitations for filing a claim: For claims involving injuries or deaths occurring on or after September 29, 2017, the claimant must file the claim one year from the date of injury or the date of death. Prior to this change, claimants had two years to file their claim. …
Federal Judge Strikes Down White-Collar Exemption Rule
A federal judge in Texas has held that the Department of Labor exceeded its authority by substantially raising the minimum salary threshold required for employees under the “white collar” exemptions. In May 2016, the DOL issued regulations that would have more than doubled the minimum annual salary threshold for the Fair Labor Standard Act’s “white collar” executive, administrative and professional exemptions, from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). However, on August 31, 2017, U.S. District Judge Amos Mazzant struck down that regulation concluding it would “essentially make an employee’s duties, functions, or tasks irrelevant if …
What Will Happen to the Salary-Exempt Regulations Under the New Administration?
We have continued to follow the litigation and political maneuvering surrounding last year’s proposed wage and hour regulations. Those regulations, which would have increased the threshold requirement for most salary exempt positions from $455 to $913 per week, were temporarily halted nationwide last November by a federal judge in Texas. Since that time, the case has been appealed to the Fifth Circuit Court of Appeals, while political wrangling over the regulations has continued. Recently, President Trump’s initial pick for Secretary of Labor, Andrew Puzder, withdrew his nomination and was replaced by Alexander Acosta, the dean of Florida International Law School. …
“Blacklisting” Reporting Requirements for Federal Contractors
On August 24, 2016, the federal government published the Federal Acquisition Regulatory Council’s Final Rule and the Department of Labor’s (DOL) Final Guidance implementing President Obama’s July 2014 Fair Pay and Safe Workplaces Executive Order 13673. The Final Rule and Guidance imposes numerous and substantial burdens on federal contractors. First, federal contractors, both prime contractors and subcontractors, bidding on new contracts with an estimated value of more than $500,000, must disclose any labor law decision rendered against them in the past three years, regardless of when the underlying conduct occurred. This reporting requirement has often been referred to as the …
OSHA Changes: Stiffer Fines for Serious and Willful Violations, New Electronic Reporting Requirements for Some Companies
OSHA is implementing new requirements that raise penalties for workplace safety violations and that mandate a series of new reporting obligations for most employers. Higher Penalties OSHA will be implementing new higher penalties for safety violations effective August 1, 2016. Although just coming into effect now, these changes have been in the works since passage of the Bipartisan Budget Act of 2015 in November of last year. Pursuant to this legislation, all federal agencies, including OSHA, were required to adjust their penalty rates to track with inflation. OSHA itself has not increased its fine schedule since 1990. For violations predating …
Have You Checked Your Workplace Notices Lately?
On July 5, 2016, the EEOC more than doubled the previous monetary penalty for failing to post required workplace notices. Under Title VII of the Civil Rights Act of 1964 (Title VII), the Americans with Disabilities Act (ADA), and the Genetic Information Non-Discrimination Act (GINA), employers are required to post notices describing certain key provisions of these laws. The notices must also be placed in a prominent and accessible location in the workplace. Failure to post the required notices means that the employer could be subject to the maximum penalty amount of $525 for each separate violation, up from the …
Important New Overtime Rules Effective December 1, 2016
On May 18, 2016, the Department of Labor announced new rules which will govern compensation for every employer in the country which is covered by the federal Fair Labor Standards Act. With a few exceptions, this includes any employer which has gross revenue of $500,000 or more. The new rules govern who is eligible for overtime. The general structure of the law has been in place since 1938 when the Fair Labor Standards Act was initially passed. The 1938 Act provides that employers are entitled to be paid time and a half for any hours worked over 40 hours in …