Client Alerts, News Articles & Blog Posts

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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

Florida’s “Stay-at-Home” Order and What it Means for Businesses

On April 1, 2020, in response to the State’s ongoing efforts to fight the spread of COVID-19, Governor Ron DeSantis issued Executive Order 20-91, which is State-wide “Stay-at-Home” Order. The Order goes into effect Friday, April 3, 2020 at 12:01 a.m., and expires on April 30, 2020, unless extended by subsequent order (the full text of the order is available here).

CMS Offers New Stark Waivers and More Flexibility to Health Care Providers Due to COVID-19

On March 30, 2020, the Centers for Medicare & Medicaid Services (CMS) issued several temporary regulatory waivers to further enable the American healthcare system to respond to the COVID-19 pandemic with more efficiency and flexibility. The official publication can be found here: Physicians and Other Clinicians: CMS Flexibilities to Fight COVID-19.

#CancelRent – What’s Next for Landlords?

Across the country, residential tenants, small businesses, and even national retailers such as Cheesecake Factory, Subway, and Mattress Firm have declared war on their landlords by refusing to pay rent on account of the Covid-19 pandemic (“COVID-19”). This has sent shockwaves through the real-estate industry. As of April 1st, residential tenants owe an estimated $40 Billion in rent. Estimates for the commercial sector are not far off. So far, federal, state, and local measures have focused on providing relief to residential and commercial tenants and even to some commercial landlords.

Record Keeping Requirements to Receive FFCRA IRS Tax Credit

On April 1, 2020, the IRS and Department of Labor issued temporary regulations to provide clarity regarding the documents required by employees requesting leave under the Families First Coronavirus Response Act (FFCRA) and the documentation that employers need to maintain.

Eviction & Foreclosure During the COVID-19 Pandemic

Like most areas of our society, the COVID-19 pandemic has greatly impacted the business relationships between landlords and tenants and between lenders and borrowers. In most states, non-essential retailers and other businesses have closed their doors and are doing business online, to the extent that they can. Some businesses, like The Cheesecake Factory, have announced that they would not be paying rent at any of their locations for at least a month due to the pandemic. Landlords and homeowners are concerned about being able to pay their mortgages and tenants are concerned about being able paying their rent.