The Employer's Wage and Hour Advisor

Origins of Right to WorkIn 2012, Michigan passed its right-to-work law, which prohibited mandatory union membership as a condition for employment in unionized workplaces. It allowed workers to opt out of paying union dues, thereby protecting free choice and encouraging unions to offer services that employees considered worth the cost of union dues.
Implications of

U.S. Department of Labor’s Changes Poised to Take Effect in 2024, But Challenges LikelyThe New Independent Contractor Test
On January 10, 2024, the DOL published its final rule regarding the test for determining whether workers are independent contractors or employees under the FLSA. The test is important because, among other things, the FLSA’s minimum wage

Circuit Courts Are Split on FLSA Collective Actions Against Out of State EmployersTo date, four federal circuit courts have considered this question, and the Seventh Circuit recently accepted an interlocutory appeal to decide the issue in the near future. The Third, Sixth, and Eighth Circuits have ruled that there is no personal jurisdiction over out-of-state

Get it Right or Pay the Price: 5 Pro Tips for Classifying Independent ContractorsStates like Illinois, California, New Jersey, and Connecticut have adopted the stringent “ABC Test” to determine the classification of employees versus independent contractors for wage and hour purposes. The ABC test generally requires each of the following to be met before an

The Michigan Sales Representative Commission Act: A Costly Trap for the Unwary BusinessThe Act Applies to Principal/Representative Relationships
The Act generally applies to all commission-based sales of goods in Michigan where a principal/representative relationship exists. The Act defines a “principal” as any person or entity who either (i) manufactures, produces, imports, sells or distributes a

As discussed further below, these changes may inadvertently create litigation risks for employers. Several common FLSA overtime exemptions (including exemptions for administrative employees, supervisors, and outside sales employees) are premised on the employee engaging in significant decision-making and carrying out functions that require a certain amount of authority. If this decision-making is replaced with AI

Sixth Circuit Scraps Two-Step Process and Sets Demanding New Requirements for Wage and Hour Collective ActionsOn May 19, the Sixth Circuit Court of Appeals set a new, substantially more demanding standard for employees to proceed on a collective basis in federal wage and hour lawsuits. The court’s decision in Clark v. A&L Home Care and

Employers Beware: Most Highly Compensated Employees Still Must Meet the FLSA’s Salary Basis Test to Be Exempt from Overtime PayMany employers remain unaware that employees making over six figures can still be entitled to overtime pay under the federal Fair Labor Standards Act (the “FLSA”).  While there is a separate exemption for highly compensated employees

State Minimum Wage IncreasesOn January 1, 2023, Massachusetts, California, and Washington became the first states to require employers to pay $15.00 or more as a minimum wage. Many other states have also increased their minimum wages, effective January 1, 2023, including: Arizona to $13.85; Colorado to $13.65; Delaware to $11.75; Illinois to $13.00; Maryland to