Executive Summary: On January 25, 2019, the National Labor Relations Board (NLRB) affirmed the Acting Regional Director’s determination that franchisees who drive for SuperShuttle are independent contractors, not statutory employees, and therefore are unable to organize or join a union. See SuperShuttle DFW, Inc., and Amalgamated Transit Union Local 1338(Case 16-RC-010963). In reaching this decision, the Board shifted the analysis back to the common-law agency test it has long used for determining when a worker will be considered an independent contractor rather than an employee for purposes of coverage under the National Labor Relations Act (NRLA). The Board’s decision in SuperShuttle emphasizes the role of entrepreneurial opportunity and rejects the overemphasis placed on “right to control” by its 2014 decision in FedEx Home Delivery, 361 NLRB 610 (2014). Continue reading →
Despite the current U.S. government shutdown, many aspects of the federal government continue to operate, including the federal court system. This Alert highlights some of the legal, legislative and administrative developments that may impact employers in 2019. Continue reading →
Executive Summary: As Democrats take over the House of Representatives this month, some will be pushing to increase the federal minimum wage, which has remained stagnant at $7.25 per hour for the past decade. Not content to wait for Congress, the “Fight for 15” movement has scored victories throughout the country by increasing wages locally. Many states and localities will be or have already begun raising the minimum wage incrementally until they reach $15. Against this shifting backdrop, employers with operations in multiple cities need to be aware of different minimum wage rates that may be applicable in certain localities, even if such rates differ from those in the rest of the state.
Executive Summary: With 2018 winding down, employers should be prepared for the minimum wage increases that are expected in the New Year. Even though the federal minimum wage has stagnated at $7.25 per hour since 2009, state legislatures have been active in increasing their respective minimum wage rates. In 2019, 21 states will increase their state’s minimum wage rate, with 18 of those increases taking effect on New Year’s Day or New Year’s Eve. Continue reading →
Effective January 1, 2019, Florida’s minimum wage rate will increase from $8.25 per hour to $8.46 per hour. The increase is calculated by the Florida Department of Economic Opportunity and is based on the percentage increase in the Consumer Price Index for the South Region. Continue reading →
Austin’s paid sick leave ordinance, which was supposed to go into effect this past October, has been held unconstitutional by the Third Court of Appeals in Austin. The court of appeals held that the ordinance establishes a “wage” and, as such, it is preempted by Texas Minimum Wage Act. The Texas Minimum Wage Act specifically precludes municipalities from regulating the wages paid by employers who are subject to the Fair Labor Standards Act (FLSA) and specifically provides that the Texas Minimum Wage Act supersedes a “wage” established in an ordinance governing wages in private employment. The court of appeals remanded the case back to the district court, instructing the lower court to grant the State’s application for temporary injunction and for further proceedings consistent with its ruling. Continue reading →