Articles Posted in Compensation, Wages and Overtime

A recent Temple University finds that pay disparities between women partners and male partners at law firms are not based upon lower productivity, as traditionally believed. In fact, according to the researchers women partners are as productive as their male counterparts. Consequently, the researchers concluded that female partners may earn less, despite their productivity, because of intentional sexual discrimination. The report is entitled, Gender Gap in Law Firm Partner Compensation.

Today, Governor David Patterson signed into law, the New York Domestic Workers Bill of Rights, which reflects the first sweeping domestic workers’ rights legislation in the nation.
Among other things, the New York law provides for overtime pay to domestic workers, and protection against workplace discrimination and harassment based upon race, gender, sexual orientation, national origin, disability, marital status and domestic victim status. The legislation specifically addresses sexual harassment, which is cited as a major problem for domestic workers in New York.

FedEx Ground has settled a case with the Attorney General of Massachusetts for misclassifying its delivery drivers. FedEx Ground classifies its drivers as independent contractors, instead of employees, which results in substantial cost-savings to FedEx Ground because under such an arrangement its drivers bear FedEx Ground’s overhead costs, among other things.

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On July 6, 2010, the United States Court of Appeals for the Second Circuit, which sits in New York City, ruled against Novartis Pharmaceuticals Corporation (“Novartis”) on claims brought by current and former pharmaceutical representatives for overtime pay. The claims were asserted under the federal Fair Labor Standards Act (“FLSA”) and state law, including New York’s Minimum Wage Act. The court’s decision affects sales representatives in New York, California and other states.

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The United States Department of Labor’s Wage and Hour Division (“WHD”) released guidelines on the use of unpaid interns by employers in the private sector. Typically, an employment relationship will be created unless an internship can meet the six criteria laid out by the WHD.

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A recent decision by the United States Court of Appeals for the Second Circuit (which covers New York, Connecticut and Vermont) clarified the “academic requirements condition” pertaining to the FLSA’s professional exemption. In Young v. Cooper Cameron Corp., No. 08-5847 (2d Cir. Nov. 12, 2009), the court held that the plaintiff was not exempt from the FLSA’s overtime provisions.

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In Whalen v. J.P. Morgan Chase, the United States Court of Appeals for the Second Circuit, held that a loan underwriter, whose job involved approving loans, in accordance with specific guidelines provided by his employer, was not exempt from the Fair Labor Standards Act (“FLSA”). The Second Circuit covers New York, Connecticut, and Vermont.

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An important amendment to Article 6 of the New York Labor Law is to become effective on October 26, 2009. The amendment affects New York Labor Law section 195, and requires New York employers to advise all new employees in writing of their regular rate of pay and pay day.

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On August 26, 2009, the New York State legislature amended the damages provision of New York’s “Payment of Wages” law, set forth in Article 6 of the Labor Law. Among other things, the amendment modifies the standard for recovering the 25% liquidated damages authorized by section 198 of the Labor Law.

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