To Be an Employee or Independent Contractor…That is the Question: Maine’s New Independent Contractor Law Goes Into Effect Today

Maine’s new independent contractor law goes into effect today with a standard definition of “employment” that seeks to eliminate confusion as to whether a worker is an employee or an independent contractor.  More on the new law can be found here.   Have you reviewed the law and the effect it could have on your workforce?  If not, we are here to help you navigate the new definition and criteria. 

Don't Forget To Tip: Reconciling Mandatory Service Charges with Maine's Tip Credit Law

Maine's Tip Credit Law allows hospitality and other service employers to pay their workers half of the minimum wage so long as those employees receive tips sufficient to make their wage rate at or above the statutory minimum of $7.50.  To ensure that employees receive the entire tip, the law requires that tips which are automatically included in a customer's bill be given to the service employee.  In Hayden-Tidd v. The Cliff House & Motels, a former banquet server alleged that her employer violated the Tip Credit Law by not paying her and her coworkers the full amount of "mandatory service charges" that were automatically applied to customer's bills.

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No Tipping, No Problem: A Massachusetts Court Permits No-Tipping Policies

Massachusetts' Tip Law ensures that service employees receive the tips, gratuities, and service charges that customers intend them to receive.  By its own terms the law does not bar an employer from adopting or enforcing a no-tipping policy, but up until a couple weeks ago that was an untested theory.  Enter the Meshna v. Scrivanos case. 

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Can "Misclassified" Workers Sue Third-Party Employers For Wage & Hour Violations? A Massachusetts Federal Court Says "Yes"

No, there is not a typo in the title.  And yes, a recent decision from the United States District Court of Massachusetts suggests that a company that did not actually employ the plaintiff might be liable for the plaintiff's employer's federal and state wage and hour violations. (Green v. Parts Distribution Xpress, Inc., et al.)

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New Litigation Trend: How Using Unpaid Interns Could Cost You Later

As the weather outside becomes less frightful, many employers are beginning to think about their summer internship programs.  Likewise, with the economy showing signs of recovery many employers are even thinking about expanding their businesses, which means more job opportunities.  At the same time, competition for entry-level professional jobs remains highly competitive especially among recent college graduates and those professionals who have been out of work during the recession.   Many unemployed professionals and recent college graduates see working for free as a great way to build their resumes, get their foot in the door, impress their potential employer, and eventually earn a paying job.    If this all sounds too good to be true (i.e., a seemingly endless supply of educated and eager employees willing to work for free) it is.

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Supreme Court To Rule On Critical FLSA Overtime Issue

The United States Supreme Court will soon consider whether pharmaceutical sales representatives ("PSRs") are entitled to overtime pay under the Fair Labor Standards Act ("FLSA").  The case comes to the Court from the Ninth Circuit where that court found that PSRs are exempt from overtime pay under the FLSA's "outside sales" exemption.  In contrast, the Second Circuit had previously ruled that PSRs are not exempt from overtime.  Thus, there is a circuit split and the Supreme Court's decision could have ramifications for employers in general, especially those that maintain an outside sales force.

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Compensation Conundrums: A Hot-Button Issue Reminds Employers Of The Need To Fairly Evaluate Employee Compensation Packages

The Wall Street Journal recently published an opinion article analyzing public school teacher compensation.  The article discusses sensitive issues relating to factors one should consider when evaluating teacher compensation.  For example, the article discusses how a teacher's educational background, relative job security, and three months off inform the analysis about why we compensate teachers the way we do.  And, of course, the article deals with the greater pension and healthcare benefits that public sector employees often recieve as compared to their private sector counterparts.  

Regardless of whether you agree with the article's opinion, it serves as a reminder to employers - public and private - that analyzing employee compensation packages requires fairness and objectivity.  Employers that decide to evalute their compensation packages might want to consider some of the following  issues, which have dominated employee compensation discussions in recent years:

• Employers are looking more frequently at the cost disparity between the healthcare benefits offered for families and those for single employees.  Single employees often pay significantly less for their health costs than employees with families.   
• Equally important is the question of how to account for and treat employees who do not subscribe to company healthcare, and instead rely on another family member's plan. 
• Finally, how are other, similar employees being paid?  Wage surveys and other vocational data may help employers determine if they are paying employees at, below, or above market.  Employers often make adjustments to their wage scale - both upward and downward - in respose to market conditions and institutional values.

While no compensation system will be perfect, and there will always be room to argue over the percieved fairness of compensation plans, employers can and should review their wage and benefit practices.  Doing so will help employers identify compensation issues unique to their own business and will help employers determine if their compensation practices are consistent with both the competitive market and the individual needs of their workforce.

To Exempt or Not to Exempt?...and Other Employee Classification Questions

On August 10, 2011, Anne Birgel Cunningham and Matt Bahl, attorneys in Verrill Dana’s Labor & Employment Group, led this workshop, which included a review of the various laws and regulations impacting how you pay and classify your workforce.

To view slides from this presentation click here.