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LinkedIn Pays $6M For OT, Obama Issues Executive Order Workplace Standards, July Monthly Update, McDonald’s Franchisees: Joint Employers? Vacation/PTO Time For Partial Day Absences


LinkedIn Pays $6 Million for Unpaid Overtime, Damages

LinkedIn Corp.’s mission is to “create economic opportunity for every professional.” The U.S. Department of Labor has determined that the company isn’t doing the same for some of its own employees.

The world’s largest professional social-networking company agreed to pay almost $6 million in unpaid wages and damages to current and former employees in California, Illinois, Nebraska and New York, the government agency said in a statement today.

“Talent is LinkedIn’s number one priority, so of course, we were eager to work closely with the Department of Labor to quickly and equitably rectify this situation…

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Obama Issues Executive Order to Boost Workplace Standards of Federal Contractors

 In his latest effort to improve workplace standards for the employees of federal contractors, President Barack Obama signed an executive order July 31 requiring prospective contractors to disclose to agencies violations of federal wage and hour, discrimination, health and safety, family and medical leave, labor and other workplace laws.

The Fair Pay and Safe Workplaces executive order, applying to new federal contracts of more than $500,000 starting in 2016, will require companies to reveal all such workplace violations—including any administrative merits determination, arbitral award or decision, or civil judgment…

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July 2014 Monthly Independent Contractor Compliance And Misclassification Update

The leading development this month in the area of independent contractor compliance and misclassification is an Arizona case that deals with a commonplace event – but one that carries with it the potential for unanticipated independent contractor misclassification liability – where a company outsources a function to a subcontractor, who uses ICs to render the service. If the ICs claim that they are employees who have been misclassified, they may also allege that the company that outsourced the work and is indirectly receiving the benefit of the work is a “joint employer” with the subcontractor. This type of claim is most likely to arise where the ICs are indirectly providing a service to a single client or customer of the subcontractor, or to a select few clients or customers. The case below finds that the outsourcing company was not a joint employer under the facts in that matter, but if some of the facts were changed in any material respect, the court may have concluded that the outsourcing company could be exposed to IC misclassification liability. The “Takeaway” below explains how outsourcing companies can minimize this potential exposure…

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Big Mac Attack : NLRB General Counsel Argues Franchisees And McDonald’s Are Joint Employers

LRB General Counsel Richard Griffin announced on Tuesday July 29th   that he has authorized issuance of Unfair Labor Practice Complaints based on 43 of 181 charges pending against McDonald’s, USA, LLC and various of its franchisees, in which the Board will allege that the company and its franchisees are joint-employers. If the General Counsel prevails on his theory that McDonalds is a joint employer with its franchisees, the result would be not only a finding of shared responsibility for unfair labor practices, but could also mean that the franchisor would share in the responsibilities of collective bargaining if unions are successful in organizing franchisors’ workers.  The news, which comes as Fast Food Forward, which is affiliated with the Service Employees International Union (“SEIU”) wraps up its convention in Illinois.

In May of this  this year, General Counsel Griffin signaled his intent to ask the Board to revisit the standards for determining when and in what circumstances two or more employers could be found to be joint employers.  At that time the General Counsel invited the filing of amicus briefs in Browning-Ferris, the General Counsel asked interested parties to share…

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Employers May Require Salaried Exempt Employees To Use Vacation/PTO Time For Partial Day Absences In Any Increment

In Rhea v. General Atomics, the California Court of Appeal issued an important ruling confirming that employers may require salaried exempt employees to use accrued vacation/PTO time for partial day absences in any increment, including increments of less than four hours, without violating the salary basis requirements for exempt status under California wage and hour law.  Rhea puts to rest a lengthy dispute on this issue and is welcome news for many employers in California that previously adopted policies requiring employees to use vacation/PTO time for any partial day absences of any length.

California’s white collar exemptions (executive, administrative, and professional) all require employees to be paid on a salary basis.  Generally this means, subject to certain exceptions, if a salaried exempt employee performs any work during a workweek, the employee must be paid his/her entire salary for that week.  One exception allows deductions…

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