Category Archives: Wage and Hour News

White House Backs Bill To Close Independent Contractor Tax Loophole; RTT News Reports

RTTNews.com is reporting that:

“Sen. John Kerry, D-Mass., and Rep. Jim McDermott, D-Wash., released a statement Wednesday noting that the White House has endorsed their legislation to close a tax loophole currently allowing businesses to misclassify workers as “independent contractors.”

Kerry and McDermott said that the Fair Playing Field Act of 2010 would protect workers from losing benefits and protections as the result of the tax loophole.

Vice President Joe Biden said, “When employees are classified as independent contractors, whether by design or because the rules are unclear, they are denied access to critical benefits and protections, at significant cost to government at all levels.”

“For these reasons, stopping worker misclassification is a priority for the President’s Middle Class Task Force, which I chair, and I applaud Senator Kerry and Congressman McDermott for introducing this bill,” he added.

In addition to providing guidance about worker classification, the bill would also increase the penalties for the failure to deduct and withhold income taxes and the employee’s share of FICA taxes.”

To read the entire article, click here.

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Filed under Independent Contractor vs Employee, Wage and Hour News

CareGroup, Staffers Settle Pay Lawsuit For Up to $8.5 Million, Boston Globe Reports

Today’s Boston Globe reports that:

“Beth Israel Deaconess Medical Center and other CareGroup Inc. affiliates have agreed to settle a class-action lawsuit against the hospital chain that alleges workers were not paid for working through lunch breaks or beyond their scheduled shifts. The settlement, if given court approval, will cover as many as 9,000 current and former CareGroup employees.

CareGroup Inc. and its affiliates — Beth Israel, Beth Israel Deaconess-Needham, Mount Auburn Hospital, and New England Baptist Hospital — will pay up to $8.5 million. The settlement will include payments to cover back wages. CareGroup and its affiliates deny any wrongdoing.”

To read the entire story, click here.

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Working Overtime May Harm The Heart, CNN Reports

A reminder to enjoy yourself and unwind this holiday weekend, from the folks at CNN:

“If you’ve been saying for years that long hours at work are killing you, forward this article to your boss–it might literally be true. According to a new study, people who work more than 10 hours a day are about 60 percent more likely to develop heart disease or have a heart attack than people who clock just seven hours a day.

It’s not clear why this is, but the researchers suggest that all that time on the job means less free time to unwind and take care of yourself. Stress may also play a role–but not as much as you might think. Working long hours appears to hurt your heart even if you don’t feel particularly stressed out, the study found.”

To read the entire article at the CNN website click here.

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Filed under Uncategorized, Wage and Hour News

Arbitrator Rules That Massachusetts Trial Court System Must Pay Workers $30 Million In Retroactive Pay Increases, Boston Herald Reports

The Boston Herald is reporting that an Arbitrator has ruled that Massachusetts’ Trial Court system must pay its clerical workers $30 million in unpaid pay increases.

“In what is being called the costliest settlement of its type in state history, the financially strapped Trial Court system must shell out $30 million in back wages to thousands of unionized clerical workers, the Herald has learned.

In a decision reached May 7, an arbitrator ruled that the Trial Court broke its contract with Office and Professional Employees International Union, Local 6, by refusing to pay the negotiated 3 percent pay raises since 2007…

In addition to the $30 million in back pay, the Trial Court must find $17 million in unfunded raises for the union employees for the next budget year, starting in July, said Superior Court Justice Peter W. Agnes Jr., president of the Massachusetts Judges Conference.”

To read the entire article click here.

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Wal-Mart Settles Wage And Hour Lawsuit For Up To $86 Million, Reuters Reports

Reuters is reporting that Wal-Mart has agreed to pay up to $86 Million to settle a class-action lawsuit accusing it of failing to pay vacation, overtime and other wages to thousands of former workers in California.

According to Reuters, “[a]bout 232,000 people will share in the settlement, which was disclosed on Tuesday in a federal court filing.

It requires a minimum payout of $43 million, and “far exceeds other recent settlements” involving Wal-Mart, the filing shows. The accord requires court approval.”

To read the entire story click here.

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Growth of Unpaid Internships May Be Illegal, New York Times Reports

Today’s NY Times reports that there is a growing trend of employers, who illegally deem workers, entitled to be paid at least minimum wage, to be unpaid “interns.”

The article reports that, “[w]ith job openings scarce for young people, the number of unpaid internships has climbed in recent years, leading federal and state regulators to worry that more employers are illegally using such internships for free labor.

Convinced that many unpaid internships violate minimum wage laws, officials in Oregon, California and other states have begun investigations and fined employers. Last year, M. Patricia Smith, then New York’s labor commissioner, ordered investigations into several firms’ internships. Now, as the federal Labor Department’s top law enforcement official, she and the wage and hour division are stepping up enforcement nationwide.

Many regulators say that violations are widespread, but that it is unusually hard to mount a major enforcement effort because interns are often afraid to file complaints. Many fear they will become known as troublemakers in their chosen field, endangering their chances with a potential future employer.”

To read the entire article, click here.

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Filed under Minimum Wage, Wage and Hour News, Wage Theft

Health Care Reform Law Amends FLSA to Require Breastfeeding Breaks, Thompson Reports

Under the new Health Care Reform Law, the FLSA has been amended in several important respects.  In addition to the highly publicized provision of healthcare for previously uninsured people, Thompson reports that employers must now provide breaks for women who are breastfeeding:

“Employers must now provide “reasonable” unpaid breaks to nursing mothers to express milk for their infants under an amendment to the Fair Labor Standards Act included in the landmark health care law signed by President Obama on March 23.

The health care law adds a new provision to the FLSA, 29 U.S.C. §207(r)(1), which allows nursing mothers to take a break every time they need to express breast milk and requires employers to provide a private location, other than a bathroom, where such employees may express milk. Employees must be allowed such breaks for up to one year after their child’s birth.

Employers of fewer than 50 employees are exempt if the breastfeeding requirements would “impose an undue hardship by causing the employer significant difficulty or expense.”

A number of states already mandate breastfeeding breaks, and under the FLSA, employers must comply with the standard that is more favorable to the employee (29 U.S.C. §218).

The health care law also amends the FLSA to require employers of more than 200 employees to automatically enroll new employees in existing employer-offered health plans.”

To read the entire article click here.

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