Recently in Minimum Wage Category

February 14, 2014

3 minor leaguers claim Major League Baseball violated the Fair Labor Standards Act

mlbstadium.jpgWhen you think of minor league baseball, you may draw on movies like Bull Durham or The Rookie; long bus trips from stadium to stadium where teams play in front of small crowds for small pay.

Well, apparently, the pay may be small enough to trigger a violation of the Fair Labor Standards Act

As pitchers and catchers being to report for Spring Training, Craig Calcaterra at NBC Sports HardBall Talk reports here that three minor league baseball players have initiated a putative class action in federal court against Major League Baseball, among others. In the Complaint (copy here), the plaintiffs allege violations of the FLSA stemming from the failure to pay minimum wage and overtime for working more than 40 hours per week.

Over at CNNSI, Attorney Michael McCann, discusses the case here and notes that the defendants are not without defenses:

Baseball will argue that professional athletes are not entitled to overtime pay. The life of a professional athlete commands atypical hours and an arduous work schedule. Some of this work may also be more in line with a player's own professional development than his employment. Baseball will surely cite case precedent and Department of Labor Wage and Hour Division materials that support an argument that minor leaguers are exempt from wage and overtime benefits. Baseball might stress that under the FLSA, "professional employees" are usually exempt from FLSA benefits and that classification includes those who perform original or unique work.

Indeed, the FLSA has a seasonality test, which could exempt baseball teams from having to abide by the minimum wage and overtime requirements. 

Here is a case in which the Sixth Circuit Court of Appeals determined that the Cincinnati Reds did not qualify for the exemption. And here is a case where the Eleventh Circuit determined that a minor league baseball team did meet the exemption.

How this one will turn out is anyone's guess. But, I'll keep a close eye on this one for you.

December 13, 2013

Your President/CEO may have to pay your company's wage and hour debts herself

MacGyver.jpgWell, that certainly sucks. Even worse than the time I found out that Santa Claus MacGyver wasn't a real person.

(My psychiatrist says that there's a light at the end of the tunnel. I'm not so sure...)

But seriously, I thought that the purpose of a limited liability company was to insulate members from the debts of the company.

After the jump, see how that rule doesn't necessarily apply when an LLC fails to pay minimum wage or overtime...

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November 20, 2013

Welcome to the Employment Law Blog Carnival: Hollywood Villains Edition

Welcome everyone to the Employment Law Blog Carnival. What you'll find after the jump is the best, recent posts from around the employment-law blogosphere all organized around a common theme.

So, yeah, we need a theme.

[Lousy blog rules]

Two years ago, we spun some tunes with the "Employment Law Blog Carnival: Jukebox Edition." That featured such hits like "If You Love HIPAA, Let Me See You Twerk It" and a Sex Pistols B-side hidden track about social media policies.

Last year, I went with the "Employment Law Blog Carnival: Hollywood Casting Call Edition." To the casual internet user, my writing in that post may have seemed, oh, what's the word, "deranged"? Here is an actual quote:

Stuart Rudner blogs "When trust has been destroyed: Just cause for dismissal." The Canadian adaptation, "Haste Makes Waste," is set for release next year and stars Dustin Diamond as Wayne Gretzky. No, not that Wayne Gretzky. Just some guy who plays a total screw-up and happens to have the same name as the "Great One," which, in turn, helps him to keep his job.

But, to you, my fans, you recognize it as something more than the product of some bad salmon I ingested just before a marathon two-finger typing session. It's gold!

So, mainly since my brain is fried from churning out this drivel -- free drivel -- every weekday, let's stick with the Hollywood theme. How about the Employment Law Blog Carnival: Hollywood Villains Edition? Hannibal Lechter would approve, I'm sure. You may even see him after the jump.

So grab some liver, fava beans and nice chianti and click through to read the carnival offerings...

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November 7, 2013

NJ votes to increase minimum wage to $8.25

Thumbnail image for nj1.jpgOn Election Day, NJ voters approved a constitutional amendment increasing the state's minimum wage by $1, from $7.25 to $8.25. The new wage rate will take effect on January 1, and future increases will be tied to inflation.

Governor Chris Christie, who was re-elected on Tuesday had opposed the increase, claiming that the state's economy would have a difficult time withstanding the increase.

New Jersey becomes the 20th state to establish a minimum wage higher than the federal minimum of $7.25.

Estimates suggest that the increase will affect about 400,000 NJ families. Hopefully, the wage hike does not affect hiring, especially in small businesses.

NJ business will want to be sure that, come January 1, they are not only paying out the proper minimum wage, but also accurately calculating overtime when minimum-wage employees work more than 40 hours in a workweek, lest they wish to find themselves in hot water with the NJ Department of Labor and Workforce Development.

October 18, 2013

Does the FLSA require paying employees who wait in security lines at work?

True story.

Back in 1999, when I was in law school in Washington DC, I went with my buddy to see The Matrix at the Uptown Theater in Cleveland Park. At the time, the Uptown was one of the best places around to watch an action flick. And what better movie to see than The Matrix -- one of my top 10 movies of all time.

WTH does this have to do with the Fair Labor Standards Act? 

Uh, duh...

[Humor me and click through, would ya?]

Continue reading "Does the FLSA require paying employees who wait in security lines at work?" »

June 29, 2012

Healthcare, what? Eyeball 3 other pending employment law bills

ThreeI heard that there was some Supreme Court decision yesterday about healthcare. Want the scoop? Google it.

They zig, I'll zag with the scoop on some other pending employment-law legislation of which employers should take note...after the jump...

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June 13, 2012

4 pending bills that could change the NJ employment landscape

Thumbnail image for nj1.jpg

One of my favorite reads on NJ employment law is Ogletree Deakins's New Jersey eAuthority. The June 2012 issue highlights several pieces of legislation now pending in NJ of which employers should take note. I've summarized four of them after the jump...

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March 28, 2012

6 keys to keeping unpaid internships from becoming a hot wage & hour mess

unpaidintern1.jpgYesterday, I presented "Reducing the Risk of Wage and Hour Litigation" with my partner, Jennifer Platzkere Snyder, at ALM's In-House Counsel Labor and Employment Law Forum. We talked best practices, common mistakes, and Supreme Court.

We also dipped into some hot issues, the hottest of which, by far, based on audience engagement, was unpaid internships. Oh boy, is it easy for companies to potentially screw up unpaid internships. Just ask Charlie Rose and Harper's Bazaar

Want to get 'em right without running afoul of the Fair Labor Standards Act. Six steps to success follow after the jump...

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Continue reading "6 keys to keeping unpaid internships from becoming a hot wage & hour mess" »