McDonald’s Drops Opposition to Minimum Wage Hikes

McDonald’s Corp., which is involved in a lingering legal dispute over whether it is a joint employer, is now dropping its lobbying efforts against minimum wage hikes, an issue that led to its legal wrangle in the first place. McDonald’s unveiled its new position yesterday in a letter to the National Restaurant Association. “We believe […]

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DOL Clarifies Tip Credit Rule Regarding Non-Customer Service Work

The Fair Labor Standards Act (FLSA) allows employers to pay service employees — those who receive “more than $30 a month” in tips — less than the minimum wage, provided tips plus wages match or exceed the minimum wage. This arrangement is known as a “tip credit,” whereby the employer can pay a minimum wage […]

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States, Municipalities Ring in New Minimum Wage Laws on Jan. 1

Seattle will set the bar for minimum wage rates on Jan. 1 when a $16-per-hour legal mandate takes effect, but the rate applies only to employers with 500 or more employees (think Amazon). New York City won’t be far behind when it boosts its legal pay rate to $15 an hour for all employers on […]

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Amazon Treads Where Others Fear: $15 an Hour

In a couple of weeks, employees at Amazon — even seasonal workers — will see their wages jump to $15 an hour, up from $11 currently. The Nov. 1 move is sure to send ripples throughout the retail industry. Other retail giants, prior to Amazon’s decision, had already announced hourly hikes. Target raised its rate […]

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Attorneys General Go After Fast Food No-Poaching Agreements

A coalition of 11 state attorneys general (AGs) has launched an initiative to stop the practice of no-poaching agreements that prevent fast food workers from being hired by competing franchisees. “Our goal through this action is to reduce barriers and empower workers to secure better-paying and higher-skill jobs,” explained Massachusetts Attorney General Maura Healey, who […]

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Paid Overtime for Sleeping on the Job?

It’s an issue that California has somewhat definitively solved, but one with which the nation’s courts have struggled: If your work requires you to sleep on the job, are you thereby eligible for minimum wage, if not overtime, during your non-waking hours? A case in Connecticut involving caretakers who sleep at the homes of their […]

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DOL Launches Voluntary FLSA Violations Reconciliation System

The Wage and Hour Division (WHD) of the Department of Labor (DOL)  has announced a new nationwide pilot program, the Payroll Audit Independent Determination (PAID) program, which facilitates resolution of potential overtime and minimum wage violations under the Fair Labor Standards Act (FLSA). The program’s primary objectives are to resolve such claims expeditiously and without […]

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On the Minimum Wage Front: The Good and the Bad

While Walmart is using tax reform to raise its nationwide minimum wage to $11 an hour and to grant bonuses, the Red Robin restaurant chain is reacting to mandated minimum wage laws by laying off all of its busboys. Walmart CEO Doug McMillon in a press release explained why he had made the decision: “Tax reform gives us […]

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A Second Circuit Court Declares DOL’s Tip Pool Rule Invalid

The 10th U.S. Circuit Court of Appeals has joined the 4th in deciding the 2011 tip pool rule by the Department of Labor (DOL) is invalid. The rule prohibits employers from sharing tips received by tipped employees such as servers with non-tipped employees such as dishwashers. The restaurants have fought back, arguing in court that […]

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Study of Seattle Minimum Wage Hike Shows Negative Results

A study of the effects of Seattle’s effort to phase in a $15-an-hour minimum wage found that so far, with the minimum wage no higher than $13, low-wage earners have suffered an average loss of $125 a month due to decreased hours and staffing cuts. Specifically, the 2014 bump in the minimum wage resulted in […]

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