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CLIENT ALERT: U.S. Department of Labor, Wage and Hour Division Sets Enforcement Record

In advance of Halloween, the U.S. Department of Labor announced the results of its Wage and Hour Division's (WHD) recovery efforts for Fiscal Year 2019, and it reads like a horror story.

The good news to lull you into a feeling of safety was that the 18,844 Complaints Registered was the fewest amount over the past 22 years or published records.

Even more reassuring was that that total number of Concluded Cases was the fewest since 2009/10.

NOW FOR THE SCARE...

the total amount of Wages Recovered was $322M!  This amount overwhelmingly surpasses the $260M average of total wages recovered for the previous five (5) years.  These wage recoveries do not include any data from civil litigation.

WHAT WERE THE VIOLATIONS?

As usual, the vast majority of enforcement actions were Unpaid Overtime - approximately 83%.  This includes the typical errors in calculating overtime for employees as well as the Misclassification of Independent Contractors.  

WHAT INDUSTRIES WERE HIT THE HARDEST?

The biggest increase in wage violations hit the Construction Industry, which saw a greater than 25% increase in back wages recovery from the previous year.  A similar increase struck Health Care, which increased just under 25% from FY 2018.  The Food Services and Hotels and Motels industries both saw significant decreases in violations from previous years.

WHAT DOES IT MEAN?

Frequent followers of these posts know we highlight that, each year, the annual budget of the Wage and Hour Division increases to allow more investigators and more enforcement action.  Emboldened with a record recovery, we can expect more and more investigations for years to come.  It means that Construction and Health Care employers need to take a close look at their wage and hour practices to ensure compliance.

For questions about your Wage and Hour practices, the recent changes to Overtime Exemption Thresholds, the Increase to Minimum Wage, or any other Labor + Employment questions, please contact any of our Team Members.  

Jeffrey C. Miller, Esq.

Labor + Employment Partner

BMD Cleveland | 200 Public Square | Suite 3270 | Cleveland, OH 44114

A New Formation Solution – is the SSLC Right for Your Business?

In early January 2021, Ohio adopted Senate Bill 276 which established a Revised Limited Liability Company Act (“ORLLCA”) as Ohio Revised Code Chapter 1706, which effectively replaces the current Ohio Limited Liability Company Act (Ohio Revised Code Chapter 1706). The ORLLCA will become effective on January 1, 2022. One of the principal changes within the ORLLCA is the ability to establish “series LLCs”. Ohio becomes the 15th state to adopt a “series LLC” (“SLLC”). The below FAQs will help you better understand the mechanics and nuances of a series LLC.

Surprise! A Cautionary Tale for Out-Of-Network Billing: The No Surprises Act and the Impact on Healthcare Providers

SURPRISE! Congress passed The No Surprises Act at the end of 2020. Providers, particularly those billing as out-of-network providers, should start thinking about strategies to comply with this new law, set to take effect on January 1, 2022. In its most basic sense, the new law prohibits providers from billing patients for more than the in-network cost-sharing amount in most situations where surprise bills happen. It specifically applies to non-government payers and the amounts will be set through a process described in the new law. In particular, the established in-network cost-sharing amount must be billed for the following services:

Ohio Enacts Substantial Changes to Employment Discrimination Laws

In January, Governor Mike DeWine signed into law the Employment Law Uniformity Act, amending the employment protections in the Ohio Civil Rights Act in several significant ways. Such changes to the state’s anti-discrimination and anti-harassment laws have been considered and debated for years and finally made their way into Ohio law. What has changed for employment claims under the amended Ohio Civil Rights Act?

OHIO ADOPTS THE SERIES LLC: Implementation of Ohio’s Revised Limited Liability Company Act is Coming

On January 7, 2021, Ohio adopted S.B. 276. The new legislation establishes the Ohio Revised Limited Liability Company Act (“ORLLCA”) which effectively replaces the current Ohio LLC Act. ORLLCA will be fully effective as of January 2022. While the new law contains numerous changes to the existing LLC landscape, below is an overview of some of the key differences under the ORLLCA.

Will Federal Legislation Open Cannabis Acquisition Floodgate?

Are potential buyers quietly lobbying at federal and state levels to kick open the door to launch a new round of strategic acquisitions? Will presently pending federal legislation, the SAFE and MORE Acts, providing safe harbor for banks and re- or de-scheduling marijuana, be sufficient to mobilize into action major non-cannabis companies that previously shunned the cannabis industry due to the unknown implications of owning businesses whose activities are illegal under federal law?