Tag Archives: U.S. DOL

Going into Overtime in the Search for a Secretary of Labor: What is Next for the 2016 Overtime Rule?

For weeks now, rumors have been circulating that the President’s nominee for Secretary of Labor, Andrew Puzder, would withdraw his name. As his confirmation hearing was delayed over and over again (five times), he repeatedly issued statements that he was fully committed to becoming Secretary of Labor and looking forward to his confirmation hearing. However, yesterday, on the eve of his scheduled appearance for questioning before the Senate Committee on Health, Education, Labor & Pensions, he issued a statement withdrawing his name for consideration.

As detailed in a previous blog post, Mr. Puzder is a fast-food executive who many believed would run the Department of Labor in a pro-business manner. Thus, labor organizations were greatly opposed to the President’s nominee and view his withdrawal as a win for workers.

This afternoon, it was announced that the President has selected former U.S. Attorney R. Alexander Acosta to serve as Secretary of Labor. Acosta is a former U.S. Attorney for the Southern District of Florida, a former member of the National Labor Relations Board, and a former assistant attorney general in the Department of Justice’s Civil Rights Division. He currently serves as the dean of Florida International University College of Law. Acosta has a very different background from the prior nominee.

If confirmed, it is not yet clear what approach Acosta will take in handing the pending appeal of the stay imposed on the 2016 overtime rules. The original briefing deadline on appeal was delayed as a result of the DOL’s request for additional time “to allow incoming leadership personnel adequate time to consider the issues.” The existing briefing deadline is currently March 2, 2017. It is possible that the administration will request additional time from the 5th Circuit Court of Appeals now that Puzder has withdrawn his name and Acosta is the new nominee. Oral argument has not been set.

Even though oral argument has not been set in the appeal, Washington is not taking a break from focusing on this issue. Today, a subcommittee of the House Education and the Workforce Committee is holding a hearing on “Federal Wage and Hour Policies in the Twenty-First Century Economy.” It is anticipated that the stayed overtime rule will take center stage at this hearing.

Jennifer Fowler-Hermes
jfowler-hermes@williamsparker.com
941-552-2558

Florida and Several of Its Cities will Ride the 2017 Wave of Minimum Wage Hikes

During the course of 2017, 21 states including Florida, plus the District of Columbia (D.C.), are increasing their minimum wage rates for nonexempt employees. Florida, along with 18 other states, increased its minimum wage as of January 1, 2017. As discussed here, Florida increased its minimum wage to $8.10. Maryland, Oregon and D.C. are set to raise their respective minimum rates in July 2017.

Several cities in Florida are also set to raise minimum wages above Florida’s minimum wage. For example, as of October 1, 2017, the City of West Palm Beach’s minimum wage rises by $1.00 per hour to a new minimum of $14.25, and then to $15 in fiscal year 2018-2019. On January 1, 2018, the City of Miami Beach’s minimum wage is set to increase to $10.31 and ultimately to $13.31 over a four-year cycle. There are other cities in Florida that either have approved or are also contemplating similar increases.

This is an important juncture for Florida employers, especially those who employ low-wage workers affected by the new minimum wage changes, to carefully audit their pay practices to ensure legal compliance. In addition to federal, state and even local minimum wage laws, many Florida counties and cities (for example Miami-Dade, West Palm Beach, and St. Petersburg) have wage theft ordinances designed to protect employees wages. Employee claims alleging violations of local, state, or federal wage and hour laws can be costly and significantly affect a company’s bottom line. Despite minimum wage increases at the state and local level, the federal minimum wage has remained stagnant at $7.25 per hour since 2009. Employers should be aware that where several different minimum wages may apply, the employer must pay the higher wage rate.

2.2% of Florida wage earners, or approximately 187,000 employees, are expected to receive pay raises due to the state minimum wage adjustment. About 4.4 million employees are expected to benefit from state minimum wage increases nationwide.

The states’ minimum wage increases and resultant minimums vary quite dramatically when compared on a national scale. At the low-end, for example, is Florida’s five cents ($0.05) per hour increase which raises the state minimum wage from $8.05 to $8.10. This matches the five cent increase in Alaska (to $9.80), in Ohio (to $8.15 ) and in Missouri (to $7.70). By contrast, at the high-end of the spectrum is Arizona with a $1.95 per hour increase to a new minimum wage rate of $10.00, followed by Maine with a $1.50 per hour increase to a new minimum of $9.00, Washington state with a $1.53 per hour increase to a new minimum of $11, and Massachusetts with a $1.00 per hour increase to a new minimum of $11 per hour.

John M. Hament
jhament@williamsparker.com
(941) 552-2555

Florida’s Minimum Wage Will Increase On January 1, 2017

On January 1, 2017, Florida’s minimum wage will increase from $8.05 an hour to $8.10 an hour.  Even though many employers are currently focused on getting ready for the December 1, 2016, increase in the minimum salary requirement for most white collar exemptions, they should not overlook the increase in the minimum wage to be paid to their non-exempt workers. Failing to pay non-exempt employees Florida’s statutory minimum wage can result claims against employers pursuant to section 24, Article X of the State Constitution and section 448.110, Florida Statutes. The tip credit that can be taken by Florida employers with tipped employees will remain the same, but the direct wage paid to tipped employees will increase from $5.03 to $5.08.

In addition, to raising the minimum wage, Florida employers are required to post a minimum wage notice in a conspicuous and accessible location. You can download the 2017 Florida Minimum Wage Notice from the Florida Department of Economic Opportunity’s website. This notice requirement is in addition to the requirement that employers post regarding the federal minimum wage. There are commercially available Florida specific “all in one posters” that satisfy both the federal and state notice requirements. The 2017 “all in one” posters should be available in the near future.

Jennifer Fowler-Hermes
jfowler-hermes@williamsparker.com
941-552-2558