In the News

 

Employer-Employee Relations

Brakes On? SCOTUS Rules on Arbitration Agreements in Employment and Transportation Contracts

Just when we thought “full steam ahead” for arbitration clauses in employment contracts, stemming from the U.S. Supreme Court’s loyal adherence to the Federal Arbitration Act (“FAA”) in Epic Systems Corp. v. Lewis, the brakes seem to have slammed on again. In January, the Supreme Court held in New Prime v. Oliveira, that the FAA does have some limitations. The earlier Epic Systems decision was seen by many as a business-friendly ruling, giving employers even greater ability to enforce arbitration agreements with their employees.

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Time to Update Contracts: New Laws Protect Employers – But You Have to Take Action

It’s the moment you dread: A document marked LAWSUIT arrives at your desk. An employee has sued the company in court claiming sexual harassment or maybe failure to pay overtime wages. The lawsuit even includes threats of class action.

The U.S. Supreme Court has now issued a business-friendly ruling that gives employers the freedom to work out problems privately. It ruled that companies may include in their employment contracts provisions that limit aggressive and costly lawsuits—including class action lawsuits.

Savvy companies, including big-time accounting firm Ernst & Young, use simple arbitration agreements in their employment contracts. These arbitration agreements prohibit employees from banding together and running to court to assert federal labor law violations. Rather, the agreements require that employees—current and former—engage in a private, low-cost arbitration process on an individual basis.

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July 2016 Publication of Final Rule: Overtime Exemptions for “White-Collar” Employees

In 2015, the Federal Department of Labor (“DOL”) announced proposed revisions to the Fair Labor Standards Act’s (“FLSA”) current overtime exemptions. The Final Rule will be published in the Federal Register in July 2016, with an effective date of 60 days later. The DOL’s “salary shift” will be the first major change to federal overtime exemptions since 2004, essentially doubling the current minimum salary requirements for employees to qualify for the executive, administrative, and professional exemptions of the FLSA (the “White-Collar Exemptions”).

Under the proposed revisions, the DOL seeks to update the salary level required to ensure that the FLSA’s intended overtime protections are fully implemented, and to simplify the identification of overtime-eligible employees. These proposed revisions will make White-Collar Exemptions easier for employers and workers to identify, understand, and apply.

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The information contained in this website is provided for informational purposes only, and should not be construed as legal advice.

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