Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

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

Client Alert

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


Community Banks: Collaboration, not isolation, is the key to protecting/ enhancing the cannabis business you pioneered

As we prepare for the plenary session of the informal institutional cannabis lenders community announced in my previous article, I am pleased to advise that participants now include 5 of the best-known dedicated loan funds; a select group of commercial banks ranging in size from single state community banks to mid-size regionals making cannabis loans into the mid-8 figures; and, a syndicator of credit union cannabis loans.

Inflation Reduction Act: Healthcare Provisions

On August 16, 2022, President Joe Biden signed into law the Inflation Reduction Act (the “Act”), a landmark climate, healthcare, and tax bill. Though the Act’s climate provisions have received most of the media attention, the healthcare aspects of the Act present some of the most significant changes to the American healthcare system since the passage of the Affordable Care Act.

The Current State of Assignment of Benefits Litigation in Florida

On May 25, 2022, Florida lawmakers approved property insurance reforms that remove attorney’s fees, with respect to assignment of benefits (“AOB”) property insurance litigation. One-way attorney’s fees are a longstanding problem in Florida and the reforms come at a time when AOB litigation increasingly affects homeowners in a negative way.

Proposed Community Revitalization Grants for Ohio Projects

Jason A. Butterworth client alert ohio tax credits historic preservation tax credits community revitalization grants

Ohio Senate Bill 225 Paves the Way for Greater Investment in Opportunity Zones and Historic Districts

Ohio Senate Bill 225 is poised to make dramatic enhancements to certain tax credit programs in Ohio, specifically those surrounding investments in “Opportunity Funds” and historic buildings. Signed into law by Governor Mike DeWine in June 2022, the Bill is positive news for real estate developers working to revitalize Ohio communities with investment and rehabilitation projects.