The New York City Council has proposed a law that would provide paid sick days to all private sector workers.
According to the Department of Justice Office of Domestic Social Development, as of February 2009, 76% of low wage workers and 48% of full-time private sector workers are not paid for sick days.
In our last blog, we reported that the federal minimum wage was set to increase on July 24, 2009, which would result in an increase from $6.55 to $7.25 per hour, thereby making the minimum wage rate under federal law higher than the minimum wage under New York law, which was $7.15. Under such circumstances, the New York minimum wage would be replaced by the higher rate under the federal Fair Labor Standards Act. Nevertheless, the New York State Department of Labor has acted by formerly increasing the wage rate under New York law to $7.25.
Based upon 2007 amendments to the Fair Labor Standards Act (FLSA), the federal minimum wage is set to increase from $6.55 to $7.25. This increase results in the federal minimum wage rate once again being higher than the minimum wage required under New York law. Currently, New York law requires that employers pay a minimum wage of no less than $7.15. Because the New York minimum wage was higher than that required under the FLSA, employers were required to comply with the New York State minimum wage.
Several New York City and area car washes, together with their corporate president, have agreed to pay 1,187 current and former employees a total of $3.4 million, reflecting back pay and liquidated damages in order to resolve a lawsuit filed by the U.S. Department of Labor under the Fair Labor Standards Act (FLSA). The lawsuit was filed in the United States District Court for the Southern District of New York.
The American Recovery and Reinvestment Act (ARRA) of 2009 results in, among other things, substantial amendments to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). Among other things, the ARRA provides that “assistance eligible individuals” (“AEI”) are only required to pay 35% of the health insurance premium charged under a plan. Employers are responsible for paying the remaining 65%. However, the employer ultimately receives reimbursement from the government in the form of a credit against income tax withholding amounts and FICA taxes.
In recent years, employees in the restaurant industry have sued employers for wage and hour violations under the federal Fair Labor Standards Act and New York’s Labor Law, alleging that they were required to share their tips with managers and others, who do not customarily receive tips directly from customers. Although the FLSA and New York’s Minimum Wage Order for the Restaurant Industry permit tip pooling, employers are not permitted to include participants in the pool, who are not of the type expected to receive tips.
Following an investigation by the New York State Department of Labor, New York’s Amish Market, Zeytinia, Zeytinz and Zeytuna, which provide “on the go” gourmet cuisine to their customers, agreed to pay almost $1.2 million to resolve New York minimum wage and overtime pay law violations.
President Obama signed the Lilly Ledbetter Fair Pay Act on January 29, 2009. It was the first bill signed into law by the new President. As discussed in earlier blogs, the new law amends Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, and the Rehabilitation Act of 1973 “to clarify that a discriminatory compensation decision or other practice that is unlawful under such Acts occurs each time compensation is paid pursuant to the discriminatory compensation decision or other practice, and for other purposes.”
On January 22, 2009, the Senate passed the Lilly Ledbetter Fair Pay Act by a vote of 61-36. In our January 9, 2009 blog posting, we reported that the Senate had passed the identical bill.
In our October 21, 2008 Blog entry, we discussed a recent award of $4.6 million dollars imposed upon New York’s famed Saigon Grill as a result of federal and New York State wage violations.
New York Employment Attorney Blog