In an 11th-hour compromise late on February 20th, the Michigan Legislature passed an amendment to the Earned Sick Time Act that was scheduled to go into effect on February 21st. The amendatory act addresses many of the provisions of the ESTA that employers found most onerous while keeping in place the basic contours of the original law. Among the changes:Continue Reading Michigan’s Last-Minute Sick Leave Overhaul: Key Changes Employers Need to Know
Employers Take Note: Michigan Supreme Court Imposes a February 2025 Deadline to Drastically Overhaul Key Employment Policies Statewide
On Wednesday, July 31, 2024, the Michigan Supreme Court handed down its opinion in Mothering Justice et al. v. Attorney General et al. In this case, community organizations challenged the State Attorney General’s determination that the Michigan Legislature could adopt a citizen initiative ballot proposal and later amend it in the same legislative session. The two laws at issue, the Improved Workforce Opportunity Wage Act (the Wage Act) and the Earned Sick Time Act (the ESTA), were contained in ballot initiatives which were adopted by the Michigan Legislature in September of 2018. The Legislature’s adoption precluded the initiatives from appearing on the November 2018 ballot. The following December, however, the Legislature significantly amended the adopted proposals, including extending the time a new state minimum wage requirement would increase to $12 per hour and reinstating the tip credit at 38 percent of the regular minimum wage.Continue Reading Employers Take Note: Michigan Supreme Court Imposes a February 2025 Deadline to Drastically Overhaul Key Employment Policies Statewide
New Overtime Exemption Rules Announced: What Employers Need to Know and Do
On April 23, the U.S. Department of Labor (“DOL”) published a set of final regulations dramatically increasing the salary level most executive, professional, and administrative employees must be paid to retain their overtime exempt status under the Fair Labor Standards Act. In most respects, and after considering 33,000 comments, the final regulations are similar to those proposed last September. The DOL has “dug-in” on many of the proposed regulations’ controversial terms. The changes are to the salary level test, only. The DOL did not modify the other two tests most workers must satisfy to be deemed exempt, i.e., the salary basis test and the duties test.Continue Reading New Overtime Exemption Rules Announced: What Employers Need to Know and Do
To Be or Not to Be (An Independent Contractor): U.S. Department of Labor Issues Final Rules for Employers
On January 9, 2024, the U.S. Department of Labor issued final rules for employers to determine if a worker is an independent contractor or employee. Workers who do not meet the new criteria under the rule must be classified as employees and subject to the Fair Labor Standards Act (“FLSA”) protections and requirements. If misclassified, these workers must be treated as employees and will be eligible for overtime pay, unless they otherwise satisfy the requirements to be considered exempt, and be subject to the minimum wage requirements under the FLSA. The employer would also need to comply with the recordkeeping requirements and maintain daily and weekly time records for the worker.Continue Reading To Be or Not to Be (An Independent Contractor): U.S. Department of Labor Issues Final Rules for Employers
The Rules on Who’s a Joint Employer Have Dramatically Changed
Over the past decade or so, there’s been much effort by the government to expand the scope of who may be deemed a joint employer. Those efforts have been to make contractors and their subcontractors, franchisors and their franchisees, and staffing agencies and their clients, joint employers. If they are joint employers, then one may be liable for the employment law wrongs of the other, and one may even have to engage in collective bargaining with respect to employees on the other joint employer’s payroll. Major efforts in this regard were made during the Obama Administration, all of which were rolled back during the Trump Administration.Continue Reading The Rules on Who’s a Joint Employer Have Dramatically Changed
DOL Proposes New White Collar Exemption Regulations – Legal Issues Abound!
On August 30, 2023, the U.S. Department of Labor announced its proposed new regulations on who can be treated as exempt from overtime pay. These proposals have been in the pipeline for nearly two years, with many in the business community anxious about what to expect. Some of that anxiety was somewhat undeserved, but some fears have been realized.Continue Reading DOL Proposes New White Collar Exemption Regulations – Legal Issues Abound!
Employee Handbooks: The Pendulum Swings Back Questioning the Legality of Many Common Policies
Over the last two years, the National Labor Relations Board (“NLRB”) has been aggressively trying to expand its coverage in a manner that has taken many employers of non-unionized employees by surprise. Many rules and concepts that have been in place for decades without challenge have been turned on their heads and are now construed to be illegal. One example is a decision by the NLRB earlier this year in McLaren Macomb ruling that common confidentiality and non-disparagement provisions in settlement and separation agreements are illegal, as a matter of law, because they could – at least theoretically – chill a worker’s right to engage in concerted activity protected under the National Labor Relations Act (“NLRA”). The takeaway from these actions by the NLRB and its General Counsel is that all policies and practices of every employer – unionized and non-unionized – will be scrutinized under the NLRB’s new highly powered microscope. In other words, employers watch out!Continue Reading Employee Handbooks: The Pendulum Swings Back Questioning the Legality of Many Common Policies
Michigan’s Right-to-Work Law Repeal
On March 21, 2023, and along party lines, the Michigan Legislature advanced a bill to the Governor’s desk to repeal the state’s 2013 right-to-work. The Governor signed the bill on March 23, 2023. The new law is expected to go into effect in April 2024.Continue Reading Michigan’s Right-to-Work Law Repeal
Non-Union and Union Employers Beware: Basic Provisions in Separation and Settlement Agreements Are Now Illegal
In a case decided by the National Labor Relations Board (“NLRB” or “Board”) on February 23, 2023, provisions in separation and settlement agreements regarding non-disparagement and confidentiality may run afoul of the National Labor Relations Act (“NLRA” or “Act”). On March 22, 2023, in an effort to provide guidance as to the scope and impact of the decision, the NLRB’s General Counsel issued a Guidance for how its regional offices should evaluate these agreements going forward. The Guidance suggests that the decision has even broader ramifications than initially thought. As described below, the decision along with the Guidance should cause employers to pause before inserting many commonly used provisions in these types of agreements.Continue Reading Non-Union and Union Employers Beware: Basic Provisions in Separation and Settlement Agreements Are Now Illegal
What Employers Need to Know Now! The Top Legal Changes and Issues for 2023!
Dykema attorneys Robert Boonin and Sean Darke will be presenting the above entitled webinar for the Michigan Chamber of Commerce on January 18, 2023. They will address how the legal landscape for employers has changed since the pandemic, the 2020 election, and 2022 mid-term elections, which may surprise many employers and which may require major changes to their approaches to employment relations. The webinar, which will have interactive Q&A, will highlight the biggest developments and provide participants guidance on how to reduce their liability going forward, and to otherwise avoid unwittingly stepping on a legal land mines triggering significant liability. Continue Reading What Employers Need to Know Now! The Top Legal Changes and Issues for 2023!