Thursday, March 24, 2016

Supreme Court Opens Wide Door for Use of Statistics in Class Action Employment Cases

Summary: The Supreme Court, in a class action involving compensation for “donning and doffing” ruled in favor of the employees, ending hopes that the Court would put additional curbs on class actions. In fact, the Court opened the door to expanded use of statistics to prove liability in FLSA cases. The Court’s 6-2 majority distinguished the Wal-Mart Stores, Inc. v. Dukes decision which had sharply limited the use of such statistics to establish liability in a class action suit. The case is expected to have sweeping repercussions for defending wage-and-hour claims generally, especially since the Court’s ruling was based on the fact that the employer had failed to keep records of the time and that the employees should not suffer as a result. Watch for plaintiffs’ lawyers who bring class action cases to push the envelope into other types of cases. Look closely too at the ways in which your companies track hours.

Wednesday, March 23, 2016

DOL Changes to FLSA Overtime Rules Moving Towards Approval

UPDATE: The Obama Administration’s controversial new white collar overtime rules have gone to the Office of Management and Budget for approval. This is the final obstacle to making the regulations public and start the implementation process. Close watchers see an Administration attempt to get the rules through OMB before May 16, which would ensure time for an Obama veto if the Congress tries to step in to stop the regulations from taking effect and a likely late summer or early fall effective date. In the meantime, on March 17, 2016, members of the House Committee on Education and the Senate Committeeon Health, Education, Labor, and Pensions introduced a bill to stop the regulations from taking effect.