Posts

Ninth Circuit: Car Dealership Service Advisors Not Exempt from FLSA

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All Employers with AK, AZ, CA, GU, HI,
ID, MT, NV, OR, WA Employees

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January 9, 2017

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We previously reported on Navarro v. Encino Motorcars, LLC, wherein a group of service advisors at an auto dealership alleged that they did not receive owed overtime compensation. At that time, the Ninth Circuit decided to defer to the U.S. Department of Labor’s interpretation of the Fair Labor Standards Act (“FLSA”); the U.S. Supreme Court reversed this decision and remanded the case to the Ninth Circuit to determine how the FLSA statutes apply to auto dealership service advisors.

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Ninth Circuit: Disclosures for Background Checks Cannot Contain a Liability Waiver

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All Employers with AK, AZ, CA, GU, HI,
ID, MT, NV, OR, WA Employees

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January 20, 2017

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On January 20, 2017, in Syed v. M-I, LLC, the Ninth Circuit Court of Appeals stated that the disclosure required by the Fair Credit Reporting Act (“FRCA”) cannot also contain a liability waiver for conducting the background check in the same document.  Rather, only the disclosure notice and background authorization can be contained within the same document.  Having other language in the disclosure notice violates background check rules under the FRCA.

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Oregon: Manufacturer Employers Must Count Both Daily and Weekly Overtime

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All Employers with Oregon Employees
in the Manufacturing Industry

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January 2017

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Between December 2016 and January 2017, the Oregon Bureau of Labor and Industries (“BOLI”) changed its interpretation of overtime hours for employees in a mill, factory, or manufacturing establishment.  A “manufacturing establishment” is “any place where machinery is used for ‘manufacturing purposes’” under specified circumstances.

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Ninth Circuit: Mandatory Class Action Waivers in Arbitration Agreements Are “Illegal”

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 Employers with Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Oregon and Washington Employees

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August 22, 2016

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The Ninth Circuit has stated that use of mandatory class action waivers in arbitration agreements are prohibited, becoming the second federal circuit court to strike down such agreements.  In short, employers in the states covered by the Ninth Circuit cannot require employees to sign an agreement giving up their right to class action/collective claims as a condition of employment.

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Ninth Circuit States Employers Must Include Cash-in-Lieu of Benefits Payments in Overtime Calculation

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All Employers with Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington Employees

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June 2, 2016

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Offering a flexible benefits plan is an oft-cited tool for organizations to improve employee satisfaction, recruitment, and retention.  However, employers should be very careful when designing benefits plans that permit cash-in-lieu of payments, as the City of San Gabriel discovered in a recent case.

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Oregon’s New Requirements for Pay Stubs, Time Records and Wage Notices

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All Employers with Oregon Employees

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January 1, 2017

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Oregon passed a bill designed to increase employer transparency in wages and payroll records.  Effective January 1, 2017, SB 1857 provides new regulations for: (1) the type of information employers must include on itemized wage statements; (2) when employees can view their payroll records; and (3) prevailing wage rates paid to employees working on public works projects.  The new regulation also provides the Oregon Bureau of Labor and Industries (“BOLI”) with increased enforcement funding derived from the Wage Security Fund to investigate and enforce wage claims.

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Workplace Posting Deadlines for July 1, 2016

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Varies; See Below

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July 1, 2016

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A number of minimum wage and/or specific paid sick leave ordinances go into effect in July, just one week away. Employers should check the table below for some imminent deadlines for workplace postings.

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Ninth Circuit States Federal Rounding Regulation Does Not Require Employees to Gain or Break Even

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All Alaska, Arizona, California, Hawaii, Idaho,
Montana, Nevada, Oregon, and Washington Employers

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May 2, 2016

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The Ninth Circuit Court of Appeals stated in Corbin v. Time Warner Entertainment Advance/Newhouse Partnership (“TWEAN”) that the federal rounding regulation for timekeeping, versus actual time worked, does not require employees to gain or break even over each pay period.  Rather, the regulation is intended to calculate wages such that they average out over the long term.  In Corbin, an employee argued that he had wrongfully been deducted minutes of compensable time as a result of the rounding system.

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Ninth Circuit Rules No Tip Pooling Among Employees who are not Normally Tipped

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All Employers who Utilize Tip Pooling Arrangements in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington

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February 23, 2016

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Employers in service industries should take note of the recent decision in Oregon Restaurant & Lodging Assoc. v. Perez, where the Ninth Circuit Court of Appeals upheld a U.S. Department of Labor (DOL) regulation which states that employers cannot require tipped employees to share their tips with untipped employees.  Prior to the decision in the Oregon Restaurant case, there was an ongoing debate among District Courts in the Ninth Circuit regarding the enforceability of the DOL regulation, causing some employers to disregard the DOL regulation entirely.

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Oregon Minimum Wage Will Increase from 2016 to 2023

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All Oregon Employers

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July 1, 2016

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Beginning July 1, 2016, Oregon’s minimum wage will gradually increase through 2023, eventually reaching one of the highest minimum wage rates in the nation. The increased wage rage is dependent on state locations as described in the below tables:

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