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Employee Compensation
California's Division of Labor Standards Enforcement (DLSE) assessed $13 million in unpaid overtime and $3 million in unpaid minimum wages last year, a huge increase over previous years that the agency credits to its new approach to enforcement.
Vermont recently enacted a law amending the Vermont Fair Employment Practice Law and expanding existing equal pay and discrimination laws to provide greater protection to employees. 2013 Bill Text VT H.B. 99; 2013 Bill Text VT S.B. 57.
Rhode Island has passed a law legalizing same-sex marriages, which takes effect on August 1, 2013.
During the 12-month period ending March 30, 2013, almost 8,000 Fair Labor Standards Act (FLSA) lawsuits were filed in federal courts, an increase of 10 percent over the previous 12-month period and a new all-time high.
The Minnesota Senate has passed legislation that would raise the state's minimum wage to $7.75 per hour by 2015, and the Minnesota House has passed legislation that would raise the state's minimum wage to $9.50 per hour by 2015 and then increase the minimum wage by the rate of inflation every year thereafter. Gov. Mark Dayton has said he prefers the House version but would sign either bill into law.
An employer may prorate the base pay of a salaried employee without forfeiting the employee's exemption from the overtime requirements of the Fair Labor Standards Act (FLSA), as long as it covers the shortfall with additional premium compensation, the 3rd Circuit Court of Appeals held in Sander v. Light Action.
If a single plaintiff's FLSA claim is satisfied then her lawsuit is moot, regardless of whether other plaintiffs might have joined in later, the Supreme Court ruled in Genesis Healthcare Corp. v. Symczyk.
President Obama also is seeking additional funding for investigations of independent contractor misclassifications and for a new integrated enforcement and case management system.
Effective August 1, 2013, the types of payroll deductions that North Dakota employers will be permitted to make will become more limited under amended rules.
As the ruling Teed v. Thomas & Betts Power shows, employers that are grooming themselves for sale should audit their FLSA compliance lest potential buyers uncover a liability that could make them think twice. Likewise, employers that are considering buying another company should carefully audit the target company's FLSA compliance with the understanding that they could inherit any liability.
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