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New Federal Overtime Laws May Be Pay Dirt for Franchise Employees
For years, franchisors and franchisees alike have assumed that most of their 'managers' are exempt from federal (and parallel state) wage-and-hour 'overtime' rules requiring payment of wages calculated at the standard rate multiplied by 150% of the hours worked over 40 hours per week. But a recent flurry of class action lawsuits challenging the classification of certain categories of employees (for example, franchised restaurant or hotel unit managers or shift supervisors) as exempted 'management' employees who are not entitled to 'time-and-a-half' overtime pay has brought this issue under close scrutiny. Plaintiffs are winning many of these cases, sometimes with huge recoveries for employees who worked many hours of uncompensated, or compensated but at straight time, overtime. Earlier this year, the U.S. Department of Labor (DOL) jumped into the arena with proposed revisions to long-standing federal rules under the Federal Fair Labor Standards Act (FLSA) that define who is and who is not entitled to overtime pay for hours over 40 per week.
The DOL introduced the proposed regulations on March 31, 2003, and it is currently seeking comments regarding the new rules. The comment period closes on June 30, 2003, after which the DOL will consider the comments and probably modify the proposed regulations before enacting them in their final form. (At this time, the proposed new regulations are not yet enacted, and the extent to which they may be changed before enactment is unknown.)
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.