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The Roller-Coaster Ride of Wage and Hour Developments Presented By: Cynthia A. Bremer © 2020, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. CEO Roundtable June 16, 2020

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Page 1: © 2020, Ogletree, Deakins, Nash, Smoak & Stewart, …...2020/06/16  · CEO Roundtable June 16, 2020 Look Familiar? Agenda Minimum Wage Developments DOL Opinion Letters Regulatory

The Roller-Coaster Ride of Wage and Hour DevelopmentsPresented By: Cynthia A. Bremer

© 2020, Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

CEO RoundtableJune 16, 2020

Page 2: © 2020, Ogletree, Deakins, Nash, Smoak & Stewart, …...2020/06/16  · CEO Roundtable June 16, 2020 Look Familiar? Agenda Minimum Wage Developments DOL Opinion Letters Regulatory

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Look Familiar?

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Agenda Minimum Wage Developments DOL Opinion Letters Regulatory Update Litigation Trends Audits Best Practices North Dakota – Final Thoughts

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Minimum Wage

Federal v. State Several State Increases in 2019 Several More State Increases on the

Horizon

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Page 6: © 2020, Ogletree, Deakins, Nash, Smoak & Stewart, …...2020/06/16  · CEO Roundtable June 16, 2020 Look Familiar? Agenda Minimum Wage Developments DOL Opinion Letters Regulatory

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2019 State Minimum Wage Changes

Page 7: © 2020, Ogletree, Deakins, Nash, Smoak & Stewart, …...2020/06/16  · CEO Roundtable June 16, 2020 Look Familiar? Agenda Minimum Wage Developments DOL Opinion Letters Regulatory

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Current Minimum Wage

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States with Future Enacted Minimum Wage Increases

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U.S. Secretary of Labor Eugene Scalia

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Opinion Letters

Issued by DOL Many in past years Several in 2019

Various Topics Some Industry-Specific

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2019 Opinion LettersPermissible rounding practices

Service provider – virtual marketplace: Employee or independent contractor?

Page 12: © 2020, Ogletree, Deakins, Nash, Smoak & Stewart, …...2020/06/16  · CEO Roundtable June 16, 2020 Look Familiar? Agenda Minimum Wage Developments DOL Opinion Letters Regulatory

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DOL Regulatory Agenda

AMBITIOUS

Regular Rate

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Overtime Regulations

New Exempt Level: $684/week, $35,568/year

New Highly Compensated Employee Level: $107,432

https://www.dol.gov/whd/overtime2019/index.htm

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FLSA Litigation

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FLSA Litigation

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2018 FLSA Case Filings in Federal District Courts

In 2018, nearly 30% of all FLSA cases filed in federal district courts were filed in New York.

Page 17: © 2020, Ogletree, Deakins, Nash, Smoak & Stewart, …...2020/06/16  · CEO Roundtable June 16, 2020 Look Familiar? Agenda Minimum Wage Developments DOL Opinion Letters Regulatory

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2019 FLSA Case Filings in Federal District Courts

In 2019, more than 25% of all FLSA cases filed in federal courts have been filed in New York.

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FLSA Class/Collective Litigation

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FLSA Class/Collective Litigation

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2019 FLSA Class/Collective Actions Filed in Federal District Courts

In 2019, 32% of all FLSA class and collective actions were filed in New York.

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Audits

DOL vs. Internal Compliance vs. Restitution Employee Communication Avoiding Litigation

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2018: Record Year DOL Back Wages Recovered

$304Million

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FY 2018 DOL Back Wages Recovery

$835,000/dayDOL back wage recovery averaged

$1,150/employee

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DOL Back Wage RecoveryNumber of complaints decreasing –

Recovery Increasing

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DOL Audit Prepare – self audit; posters; fix issues; train;

create response team Opening conf. – response team; attorney; notes Request for records – writing; redact confidential

information; off-site Interviews – non-management vs. mgmt. Closing conference

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North Dakota – Final Thoughts Available state resources found:

https://www.nd.gov/labor/wage-and-hour-topics ND Basics:

Min. wage - $7.25 OT – 1.5 times over 40 hours 30 minute unpaid meal breaks for shifts exceeding 5 hours

Other information found on ND Minimum Wage and Work Conditions Summary Poster (“excellent resources that summaries states law”)

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Thank You!

Cynthia A. BremerOffice Managing Shareholder

[email protected]