Compliance Stuff

At a Glance The Third Circuit held that the Fair Labor Standards Act (FLSA) does not allow recovery of “overtime gap time.”  The court squarely rejected the DOL’s position that employees must be paid their “regular rate” for all hours worked before overtime is calculated.  The court declined to defer to longstanding DOL guidance, finding it unpersuasive and unsupported by the statute’s text.  As a result, unpaid straight-time wage claims are pushed into state law and contract theories, not the FLSA. In a significant development for employers in the Third Circuit, the U.S. Court of Appeals for the Third Circuit recently held that the FLSA does not permit recovery of “overtime gap time” wages. While the decision limits the scope of federal wage-and-hour liability in the Third Circuit, it leaves open the possibility of state law and contract remedies.  Background The case arose from a U.S. Department of Labor (DOL) enforcement action against a group of healthcare facil...

Philadelphia has become the first city in the country to enact a mandatory workplace retirement savings option. T he program – also known as PhillySaves – was signed into law by Mayor Cherelle Parker on January 20, 2026, but its implementation required passage as a ballot measure. After Philadelphia voters approved the initiative in the city’s May 19 elections, the program went into effect immediately, though contributions do not begin until July 1, 2027, likely in a phased implementation. More than 15 states have already enacted some form of mandatory retirement savings program for employees that are not otherwise covered by an employer-sponsored plan, with similar bills having been proposed in at least 10 others this legislative session. However, the Philadelphia measure is the first local-level enactment of such a plan. PhillySaves applies to employers that have been in business within the city of Philadelphia for at least 24 months . While this is likely to apply primarily to small...

The Allegheny County Health Department’s (ACHD’s) Board of Health voted unanimously on May 13 to advance a sweeping proposed rule that would require every employer in Allegheny County, regardless of size, to provide up to 18 weeks of job-protected and paid parental leave, as well as expand existing paid sick leave requirements. If the rule ultimately is adopted and becomes law, Allegheny County would become the first county in Pennsylvania to impose a paid parental leave mandate on private employers. We’ll explain everything you need to know and offer five practical steps you should consider taking now. What Did the Board of Health Actually Approve? The Board approved, for opening to public comment, a proposed amendment that would expand the paid sick leave rules in Article XXIV of the ACHD Rules and Regulations  and add in a new paid parental leave framework. This is the same regulatory vehicle the County used to enact its 2021 Paid Sick Leave Ordinance , and it reflects a delibe...

The Commonwealth of Pennsylvania has alleged an AI company’s chatbot engaged in the unauthorized practice of medicine. This lawsuit not only signals how state regulators are potentially evaluating AI-driven health interactions, but it could also have sweeping implications for health IT companies and their operational risk. Case Overview On May 1, Pennsylvania, acting through it’s State Board of Medicine within the Department of State, filed an action [1] against Character Technologies, Inc., alleging that the company’s AI chatbot engaged in the unauthorized practice of medicine in violation of the Pennsylvania Medical Practice Act. Character Technologies, Inc. owns and operates the website and mobile application Character.AI . Through Character.AI, millions of users regularly interact with unique chatbot characters. A state investigator allegedly created an account and engaged with a chatbot named “Emilie,” described as a “doctor of psychiatry,” and the investigator was told that “[y]...

KEY TAKEAWAYS: A recent federal court case provides guidance on how to address an employee’s request for an accommodation based upon a sincerely held religious belief Employers must offer reasonable accommodations for the sincerely held religious beliefs of employees who seek exemptions from certain mandates and policies In addressing the request for a reasonable accommodation, employers should not address the validity or plausibility of the employee’s belief Employers may consider if the sincerely held religious belief is based upon secular beliefs by evaluating how the employee frames their request, but still, employers should do so cautiously A recent federal court case heard by Chief Judge Matthew Brann for the Middle District of Pennsylvania provides employers with guidance on how to address an employee’s request for an accommodation based upon a sincerely held religious belief. In  Rackovan v. The Pennsylvania State University , the employee sought to be exempted from the uni...

A new  law  in Illinois requires health plans to cover therapies for menopause, and another new  law  in Philadelphia prohibits employers from discriminating based on menopause or menstruation. Several other states provide legal protections for female employees experiencing menopause, but Philadelphia is the first major city to provide these protections. Quick Hits In Illinois, a new law requires individual and group health plans to cover treatments for menopause symptoms. In Philadelphia, a new law bars employers from discriminating against employees based on menopause, perimenopause, or menstruation, and requires accommodations for employees based on menopause, perimenopause, or menstruation symptoms. The Illinois law took effect on January 1, 2026, and the Philadelphia law will take effect on January 1, 2027. The Illinois law requires that health plans cover menopause therapies that are medically necessary and recommended by a qualified physician. It includes hor...