HR News

10.12.21

What are wage and hour claims?

FLC - Wage & Hour

The term “wage and hour claims” can be confusing, seeing as it covers such a wide array of violations. To help California employers gain a better understanding of wage and hour law, Fishman, Larsen & Callister has put together this concise overview on the topic.

The Fair Labor Standards Act (and Its Impact on Wage & Hour Claims)

 

First, let’s address what the Fair Labor Standards Act (FLSA) even is and how it lays the foundation for all wage and hour claims throughout the United States. Whether your company is public or private, the primary federal wage and hour restrictions it faces are dictated by FLSA. Enforcement of FLSA is left in the hands of the Department of Labor’s Wage and Hour Division (WHD). However, most states (including California) have their own departments of labor as well. This is the entity that enforces the state’s wage and hour laws.

For any employer to be fully compliant with wage and hour regulations, they will need to adhere to federal, state, or local laws. If any of these are violated, it is possible that the employer will have a wage and hour claim rightfully leveled against them. They may even face litigation.
How Can Employers Avoid Receiving Wage and Hour Claims?

To minimize their chances of being faced with a wage and hour claim, there are some key pieces of information employers will need to be familiar with.

For instance, they will need to understand what time, specifically, is compensable. They will also need to have a clear understanding of how to accurately calculate overtime pay. In fact, one of the most common types of wage and hour claims involves being unreasonably compensated for overtime work. Although this is sometimes a deliberate act on the part of the employer, other times, it is a negligent error.

Further, employers will need to have a developed understanding of how to classify their employees. Another common form of wage and hour claim occurs when an employee is misclassified — for instance, a standard employee could be falsely classified as an independent contractor. This misclassification will have a significant impact on the wages they receive, the taxes they face, and the amount of break time they’re legally required to receive.

More specifically, the employer will need to know the difference between an exempt and a non-exempt employee and be able to classify everyone accurately. They will also need to accurately distinguish between trainees, interns, and volunteers.

Finally, for employers to successfully avoid wage and hour claims, they will need to abide by child labor laws.

 

What Are the Most Common FLSA Violations?

 

As we mentioned at the start, wage and hour claims come in many forms. There are, however, some iterations that are more common. Some of the most common FLSA violations are as follows:

 

Failing to Receive Required Rest or Meal Breaks

If a worker isn’t receiving their required allotment of rest and meal breaks, then they have the right to enact a wage and hour claim. Additionally, if that individual isn’t being paid appropriately for their break time, this is another reason for a claim. If an employee is made to work during their break time, they also reserve the right to be compensated for lost wages.

Compensatory Time

On occasion, an employer might offer an employee compensatory time off at a later date rather than providing them with necessary overtime pay. Although this might seem like a fair exchange, it is actually a direct violation of wage and hour laws. If this occurs, the worker could take their employer to court for lost overtime wages.

 

Unpaid Lectures, Meetings, and Training

It isn’t uncommon for employees to face required lectures, meetings, training, or similar events. In each of these instances, it’s necessary for the employer to pay their worker for attending these meetings or events. If they aren’t appropriately paid, this is a violation of FLSA and could result in a wage and hour claim.

Unpaid Work-Related Travel

If an employee is required to travel for work, they will need to be paid appropriately for their time. Whenever an employer fails to pay their employee for any work-related travel, they are violating FLSA.

Minimum Wage Violations

Another common cause of wage and hour claims occurs when an employer fails to pay their workers minimum wage. Firstly, keep in mind that the federal minimum wage is currently set at $7.25 — however, many states have a minimum wage that is higher than this amount, and that higher amount is what employers in that state must adhere to. Further, the state minimum wages in several locations are incrementally increasing over time.

For instance, in California, the current minimum wage for employers with more than 26 employees is $13 an hour. For employers with fewer than 26 employees, on the other hand, the minimum wage is $12. This has been the case since 2020, although between 2019 and 2020, each of these numbers was exactly one dollar less. As time goes on, the minimum wage in CA is increasing — this also means that the standard for minimum wage violations is changing as well.

Underpaid or Unpaid Overtime

Finally, a common cause of wage and hour claims is due to underpaid or unpaid overtime work. This is relatively straightforward; if an employee isn’t appropriately compensated for the overtime work they perform, then they are permitted to sue their employer for a wage and hour violation. FLSA states that if a non-exempt employee is working more than forty hours in one week, then the hourly wage they receive beyond that point should be 1.5 times greater than their standard hourly wage. If there’s a miscalculation error, or if an employer simply isn’t compensating their employee for overtime work, this is a clear FLSA violation.

Protect Your CA Business Against Wage and Hour Claims With Fishman, Larsen & Callister.

For your California wage and hour defense to succeed, it’s essential that you work with an experienced attorney. To get in contact with the skilled legal team at Fishman, Larsen & Callister, be sure to fill out the form on our website and schedule a consultation.

Doug Larsen

Fishman, Larsen & Callister

559.256.5000

Larsen@flclaw.net

 

 

 

 


09.27.21

UPDATE COVID-19 Sick Leave Payable Into October

COVID-19

In an HR Headliner published on September 23, we let you know that federal and state COVID-19 paid sick leave was set to expire on September 30, 2021.

Employers with 26 or more employees should note that under California law, if an employee’s qualifying absence for COVID-19 reasons begins on or before September 30, the employee must be allowed to continue the leave and receive supplemental paid sick leave benefits for up to 10 days. However, the amounts paid from October 1 forward are not eligible for payroll tax deduction.

Please contact one of our Consultants if you have questions regarding the timing of an employee’s COVID-related leave, and how to apply sick leave benefits.


09.24.21

Important Updates on COVID Sick Leave and Background Checks

COVID-19
Expiration of COVID-19 Paid Sick Leave
State and federal COVID paid time off benefits – emergency paid sick leave, expanded FMLA, and supplemental paid sick leave – have existed in some form since April 2020. Despite the ongoing pandemic, these benefits are set to expire at the end of this month on September 30. This means that California will no longer require employers of 26 or more to provide supplemental paid sick leave. It also means that the federal government will no longer provide payroll tax credits for COVID paid time off.
Even though these benefits will no longer be available, what isn’t changing are the Cal/OSHA and health department requirements to maintain a safe workplace. Unvaccinated employees who are exposed to a COVID-19 case and symptomatic employees must still be excluded from work – and now, there will be no paid time off benefit to help them make ends meet.
What is your organization’s plan starting October 1st
You might consider dusting off the laptop computers you finally collected back from employees returning to the office, so they may continue to work from home when needed. You might consider offering additional sick leave benefits (without the tax credit) so employees don’t feel compelled to hide symptoms in order to stay at work. You might even consider mandating the COVID vaccine for your employees. State Disability Insurance and Paid Family Leave benefits will be available through the EDD, and may provide partial support.
We understand these can be difficult decisions. Availability of extra sick leave has made it fairly simple to send employees home whenever there was a concern about COVID. We recommend giving employees advance notice of their options for work location and income replacement if they must be excluded from the office after Sept. 30.
(more…)

09.13.21

COVID-19 Update: Vaccine Mandate for Employers of 100+

COVID-19

On September 9, President Biden announced that he would instruct the U.S. Department of Labor to issue an emergency rule requiring private employers with 100+ employees to ensure that all workers are fully vaccinated or submit to weekly COVID testing. Employers would be required to provide paid leave for the time it takes workers to get vaccinated or to recover from vaccine-related symptoms. The requirement would be implemented and enforced by OSHA. (This is in addition to an Executive Order requiring COVID vaccination for all federal employees and those working for federal contractors.)

At this time, we do not have details regarding effective dates or possible exemptions. When the Department of Labor’s emergency rule and OSHA’s regulations are published, we will provide updated information. In the meantime, you can read more information about the President’s plans for vaccinations and other COVID measures on the White House website. Please contact one of our certified Consultants if you have any specific questions for your business.


08.11.21

Compelling Employees to be Vaccinated Before Entering the Workplace

COVID-19
Just when we thought COVID-19 restrictions would ease, the Delta Variant is causing additional concerns and restrictions.  Some cities and counties have re-imposed the wearing of masks regardless of vaccination status.  Many public and private employers have mandated employees either become vaccinated or test weekly or more often for COVID-19.  Because of the cost associated with testing, some employers are considering compelling all employees to become vaccinated or lose their jobs.  The California Department of Public Health has added to the confusion by issuing an Order dated August 5, 2021 compelling the vaccination of employees who work in certain Health Care Facilities.
Privacy Rights.  Can a business require proof of vaccination without violating HIPAA or another privacy law?  Yes.  HIPAA protects the flow of information maintained by businesses in the healthcare and insurance industries.  It does not apply to most businesses.
Vaccination status is considered protected health information or PHI.  However, even a business in the healthcare industry does not violate HIPAA by asking its employee to disclose vaccination status.
General privacy laws probably do not prevent an employer from asking about vaccination status.  Typically, a person’s right of privacy must be balanced against an employer’s right to know.  Given the pandemic nature of COVID-19, the many regulations that govern businesses and the workplace, an employer’s right to know vaccination status will probably outweigh any employee’s right to maintain this information as confidential.
Equal Employment Opportunities Law.  The EEOC updated its Technical Assistance related to COVID-19 on May 28, 2021.  The Agency concluded that equal employment laws do not prevent an employer from requiring its employees to be vaccinated before entering the workplace.  Of course, this rule is subject to two exceptions for a medical accommodation or a religious objection.
Individual with a Disability.  The Americans with Disabilities Act, or ADA, as well as the California Fair Employment and Housing Act, or FEHA, require an employer to provide a reasonable accommodation for employees who, because of a disability, do not get vaccinated for COVID-19, unless the accommodation creates an undue hardship on the business.
The accommodation process includes a good-faith, interactive discussion to determine possible accommodations.  The process can include determining whether it is necessary to obtain supporting medical documentation about an employee’s disability.  The process should include a discussion of the laws applicable to the business as well as any a direct threat to the health or safety of co-workers, customers, clients or patients.
Religious Accommodation.  The law also recognizes that an employer may be required to provide a reasonable accommodation for employees who, due to a sincerely held religious belief, practice or observance, do not get vaccinated for COVID-19.
Historically, federal law has not required much of an accommodation for religious beliefs or practices.  Typically, an employer has been required to provide nothing more than a de minimis, or minimal, accommodation.   In its Technical Guidance, the EEOC says an employer “should thoroughly consider all possible reasonable accommodations ….”  An undue hardship is created if there is “more than a minimal cost or burden on the employer.”  Thus, it appears that while an employer should consider all possible accommodations, an employer is not required to make much of an accommodation in either cost or other burdens.  By the way, those other burdens might include the percentage of employees who are vaccinated, an employee’s contact with non-employees, and the direct threat to the health and safety of others.
California law under FEHA is similar to Title VII but may be more protective of the employee.  In the event of a conflict between the employee’s religious belief or observance and an employment requirement, such as COVID-19 vaccination, the employer must explore “any available reasonable alternative means of accommodating” the employee.  The employer must also make reasonable accommodations unless it creates an undue hardship meaning a “significant difficult or expense.”
Asking for Supporting Documentation.  Can an employer ask for medical documentation concerning a disability?  According to the EEOC, the answer is yes.  Most likely, that discussion should focus on the existence of a disability and the limitations imposed by that disability as opposed to the nature of the disability.
Can the employer ask about the nature or sincerity of the employee’s religious belief?  Given the ardor with which some persons avoid the COVID-19 vaccination, we expect many employees to find God and fabricate new beliefs.  Religious beliefs, which include moral or ethical codes as to what is right or wrong, need not be acceptable, logical, consistent or comprehensible to others.  Nor must the belief be espoused by a religious group.  Thus, questions related to the truth or logic of a religious or moral code would probably not be appropriate.
However, the sincerity of the belief in that religious or moral code is crucial to an employee’s claim of religious belief.  Absent proof of a sincerely held belief, the employee cannot show a conflict between religious observance or practice and the employment requirement.  Thus, presumably a discussion as to the employee’s sincerity in a religious or moral code, may take place.
Wrongful Termination.  Can an employer fire a worker for refusing to be vaccinated or to engage in periodic testing?  The answer is yes in most cases.  Typically, employees are not governed by a contract or a collective bargaining agreement that governs the termination process.  If a contract of employment does exist, it will be necessary to review the provisions to determine if cause exists.  Governmental regulations may supersede contractual provisions and require termination of employment.
In California, employment is presumed to be at-will.  This means that an employer can terminate the employment relationship for any reason, no reason, or even a wrong reason.  The only exception to at-will employment is public policy.  However, we have already discussed how requiring a vaccination does not violate any public policy.  Therefore, ending the employment relationship because an employee won’t comply with company policy, and perhaps legal requirements, does not constitute wrongful termination.
Conclusion.  COVID-19, and the government’s response to it, has made life in the business world extremely difficult.  Conditioning continued employment on vaccination or testing is legal in most circumstances.  Exceptions apply in cases of disability or religious objection.  The extent of verifying disability or religious belief, as well as when accommodation becomes an undue hardship, can become extremely complicated.
A business must consider many factors when making employment decisions related to COVID-19.  Attention to detail, as well as conferring with legal counsel about the details of your situation is critical.
Doug Larsen
Fishman, Larsen & Callister
559.256.5000
larsen@flclaw.net


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