Compliance Stuff

  The Supreme Court just handed businesses a win when it weighed in on how much evidence an employer needs to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay. As we correctly predicted after oral argument, the Justices agreed with the employer that an unusually high “clear and convincing” evidence standard  does not  apply to federal wage law. Rather, an employer needs only show its position is more likely than not correct under the “preponderance of the evidence” standard that is typically applied in civil lawsuits. Today’s unanimous decision sets a consistent national standard under the Fair Labor Standards Act (FLSA) and will reduce litigation risks by making it easier to show that employees are properly classified. Here are the key points you should know about the ruling and what it means for your workplace. How Did We Get Here? Exempt Classification Challenged:  In  E.M.D. Sales Inc. v. Carrera ,...

Minnesota has strengthened its laws relating to the misclassification of employees in general, and in the construction industry specifically. For non-construction employers, damages and penalties available that can be imposed for the misclassification of a worker as an independent contractor include: (1) compensatory damages to the individual wrongly classified, which can include: the value of supplemental pay including minimum wage, overtime, shift differentials; vacation and sick pay and other forms of paid time off; health insurance; life and disability insurance; retirement and related savings plans; social security and Medicare; and any other cost and expense incurred by the individuals resulting from the improper classification; (2) a penalty of up to $10,000 for each individual wrongly classified or related violations of the statute; (3) a penalty of $1,000 for any delay, obstruction, or failure to cooperate in an investigation by the commissioner (each day of delay, obstruction...