Abstract
Compliance with wage and hour laws within the USA is an evolving legal landscape and requires familiarity with many different statutes and regulations at both the federal, state, and local level along with court decisions that interpret the laws. The focus of this chapter is those issues that are frequently litigated and can be addressed using systematic methods from industrial/organizational (I/O) psychology or related disciplines. This chapter provides an overview of the FLSA and its associated regulations along with state and local laws that contain additional wage and hour obligations. The legal framework for several specific wage and hour disputes are provided, including FLSA exemptions, independent contractor classification, off the clock work, and meal and rest break compliance. Because many wage and hour lawsuits are brought as class or collective actions, an overview of the class certification process is also provided. The chapter concludes with a description of litigation trends in wage and hour litigation. This chapter provides the legal background of each of the issues discussed in later chapters.
The original version of this chapter was revised. A correction to this chapter can be found at https://doi.org/10.1007/978-3-319-74612-8_10
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Notes
- 1.
29 U.S.C. §§ 201–219. The statute can be accessed online at https://www.dol.gov/whd/regs/statutes/FairLaborStandAct.pdf
- 2.
Grossman (n.d.).
- 3.
Pederson (2006).
- 4.
US Department of Labor (2016a).
- 5.
29 C.F.R. §§ 500–899. This section of the Code of Federal Regulations can be accessed online at https://www.dol.gov/dol/cfr/Title_29/Chapter_V.htm
- 6.
See Grossman (n.d.).
- 7.
US Department of Labor (2009).
- 8.
US Department of Labor (2009).
- 9.
29 U.S.C. § 206; US Department of Labor (n.d.a).
- 10.
29 U.S.C. § 207.
- 11.
29 U.S.C. § 212; 29 C.F.R. § 570; US Department of Labor (2013).
- 12.
29 U.S.C. § 211; 29 C.F.R. § 516; US Department of Labor (2008a).
- 13.
29 C.F.R. § 541.
- 14.
29 C.F.R. § 785.
- 15.
29 C.F.R. § 778.
- 16.
29 C.F.R. § 778.
- 17.
For links to specific state laws, see US Department of Labor (n.d.b) available at https://www.dol.gov/whd/state/state.htm
- 18.
29 U.S.C. § 218(a).
- 19.
See, e.g., Department of Industrial Relations (2016).
- 20.
See UC Berkeley Labor Center (2017).
- 21.
National Partnership for Women and Families (2017).
- 22.
National Conference of State Legislatures (2016).
- 23.
City and County of San Francisco Office of Labor Standards Enforcement (n.d.).
- 24.
29 C.F.R. § 541; see alsoUS Department of Labor (2008b).
- 25.
29 C.F.R. § 541.400.
- 26.
29 C.F.R. § 541.500.
- 27.
29 C.F.R. § 541.601.
- 28.
Executive Office of the President (2014).
- 29.
US Department of Labor (2016b).
- 30.
Nevada v. US Dep’t of Labor.
- 31.
Nevada v. US Dep’t of Labor; see alsoUS Department of Labor (2017a).
- 32.
US Department of Labor (2017b).
- 33.
US Department of Labor (2014).
- 34.
US Department of Labor (n.d.c).
- 35.
US Department of Labor (n.d.c).
- 36.
US Department of Labor (n.d.c).
- 37.
- 38.
See, e.g., O’Connor v. Uber Technologies, Inc. et al.
- 39.
29 U.S.C. §§ 206–207 (2012).
- 40.
Alaska Stat. §§ 23.10.050–23.10.150 (2016); Cal. Lab. Code § 510 (2016); Nev. Rev. Stat. § 608.018 (2016).
- 41.
- 42.
29 C.F.R. § 785.47 (2016); see also Anderson v. Mt. Clemens Pottery Co.
- 43.
Addison v. Huron Stevedoring Corp.
- 44.
US Department of Labor (2008e).
- 45.
Green (2016); Troester v. Starbucks Corp.
- 46.
- 47.
US Department of Labor (2017f).
- 48.
The California Fair Pay Act prohibits California employers from paying their employees less than employees of the opposite sex for “substantially similar” work unless the employer can show that the pay gap is justified by a factor other than sex, such as seniority, merit, a system that measures production, or differences in education, training, or experience (Department of Industrial Relations, 2017). Effective January 1, 2017, the Act was expanded to cover unequal pay as to race and ethnicity. See Wage Equality Act of 2016.
- 49.
See Cal. Lab. Code, available at http://leginfo.legislature.ca.gov/faces/codesTOCSelected.xhtml?tocCode=LAB&tocTitle=+Labor+Code+-+LAB
- 50.
See Cal. Code Regs., available at https://www.dir.ca.gov/IWC/WageOrderIndustries.htm
- 51.
Division of Labor Standards Enforcement (2017).
- 52.
The opinion letters are available online at https://www.dir.ca.gov/dlse/OpinionLetters-bySubject.htm
- 53.
Saltsman (2017).
- 54.
I.W.C. Wage Order 7-2001 § 14.
- 55.
See, e.g., Lee (2017).
- 56.
29 U.S.C. § 216(b).
- 57.
Fed. R. Civ. P. 23, available at https://www.federalrulesofcivilprocedure.org/frcp/title-iv-parties/rule-23-class-actions/
- 58.
29 U.S.C. § 216(b).
- 59.
See, e.g., Hoffman-La Roche, Inc. v. Sperling (vesting district courts with the authority and discretion “to implement 29 U.S.C. § 216(b) . . . by facilitating notice to potential plaintiffs”).
- 60.
See, e.g., Cal. Code of Civ. Pro. § 382.
- 61.
Vasquez v. Superior Court.
- 62.
Fed. R. Civ. P. 23(a).
- 63.
Fed. R. Civ. P. 23(b)(3).
- 64.
Wal-Mart Stores, Inc. v. Dukes (quoting Gen. Tel. Co. of Sw. v. Falcon).
- 65.
Wal-Mart Stores, Inc. v. Dukes.
- 66.
DePillis (2015).
- 67.
Teachout (2017).
- 68.
Ramirez (2017).
- 69.
See DePillis (2015).
- 70.
See Ramirez (2017).
References
City and County of San Francisco Office of Labor Standards Enforcement. (n.d.). San Francisco labor laws: Citywide. Retrieved from http://sfgov.org/olse/san-francisco-labor-laws-citywide
Department of Industrial Relations. (2016). Minimum wage. Retrieved from http://www.dir.ca.gov/dlse/FAQ_MinimumWage.htm
Department of Industrial Relations. (2017). California Equal Pay Act: Frequently asked questions. Retrieved from https://www.dir.ca.gov/dlse/California_Equal_Pay_Act.htm
DePillis, L. (2015, November 25). Why wage and hour litigation is skyrocketing. The Washington Post. Retrieved from https://www.washingtonpost.com/news/wonk/wp/2015/11/25/people-are-suing-more-than-ever-over-wages-and-hours/?utm_term=.14e3293ce750
Division of Labor Standards Enforcement. (2017). The 2002 update of the DLSE enforcement policies and interpretation manual (Revised). Retrieved from http://www.dir.ca.gov/dlse/DLSEManual/dlse_enfcmanual.pdf
Executive Office of the President. (2014). Updating and modernizing overtime regulations: Memorandum for the Secretary of Labor (79 FR 15209). Retrieved from https://federalregister.gov/a/2014-06138
Green, K. (2016, August 18). California justices take on time issue in Starbucks wage suit. Law360. Retrieved from https://www.law360.com/articles/830228/calif-justices-take-on-time-issue-in-starbucks-wage-suit
Grossman, J. (n.d.). Fair Labor Standards Act of 1938: Maximum struggle for minimum wage. Retrieved from https://www.dol.gov/oasam/programs/history/flsa1938.htm
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Pederson, W. D. (2006). Presidential profiles: The FDR years. Retrieved from https://www.e-reading.club/bookreader.php/142104/Pederson_-_Presidential_Profiles__The_FDR_Years.pdf
Ramirez, J. C. (2017). Surveying the class action landscape. Retrieved from http://www.hreonline.com/HRE/print.jhtml?id=534361759
Saltsman, M. (2017, June 4). Private Attorneys General Act is another burden to California small businesses. The Orange County Register. Retrieved from http://www.ocregister.com/2017/06/04/private-attorneys-general-act-is-another-burden-to-california-small-businesses/
Teachout, R. (2017). Fewer wage and hour class actions filed, but value of settlements spikes. Retrieved from https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/class-action-wage-and-hour-2016.aspx
U.S. Department of Labor. (2008a). Fact sheet #21: Recordkeeping requirements under the Fair Labor Standards Act (FLSA). Retrieved from https://www.dol.gov/whd/regs/compliance/whdfs21.pdf
U.S. Department of Labor. (2008b). Fact sheet #17A: exemption for executive, administrative, professional, computer & outside sales employees under the Fair Labor Standards Act (FLSA). Retrieved from https://www.dol.gov/whd/overtime/fs17a_overview.pdf
U.S. Department of Labor. (2008c). Off-the-clock references. Retrieved from https://www.dol.gov/whd/offtheclock/
U.S. Department of Labor. (2008d). Fact sheet #22: Hours worked under the Fair Labor Standards Act (FLSA). Retrieved from https://www.dol.gov/whd/regs/compliance/whdfs22.pdf
U.S. Department of Labor. (2008e). Opinion letters - Fair Labor Standards Act, FLSA2008-7NA. Retrieved from https://www.dol.gov/whd/opinion/FLSANA/2008/2008_05_15_07NA_FLSA.htm
U.S. Department of Labor. (2009). Fact sheet #14: Coverage under the Fair Labor Standards Act (FLSA). Retrieved from https://www.dol.gov/whd/regs/compliance/whdfs14.pdf
U.S. Department of Labor. (2013). Child labor provisions for nonagricultural occupations under the Fair Labor Standards Act. Retrieved from https://www.dol.gov/whd/regs/compliance/childlabor101_text.htm
U.S. Department of Labor. (2014). Fact sheet #13: Am i an employee? Employment relationship under the Fair Labor Standards Act (FLSA). Retrieved from https://www.dol.gov/whd/regs/compliance/whdfs13.pdf
U.S. Department of Labor. (2016a). Handy reference guide to the Fair Labor Standards Act. Retrieved from https://www.dol.gov/whd/regs/compliance/wh1282.pdf
U.S. Department of Labor. (2016b). Defining and delimiting the exemptions for executive, administrative, professional, outside sales and computer employees (81 FR 32391). [Final Rule]. Retrieved from https://federalregister.gov/a/2014-06138
U.S. Department of Labor. (2017a). Important information regarding recent overtime litigation in the U.S. District Court of the Eastern District of Texas. Retrieved from https://www.dol.gov/whd/overtime/final2016/litigation.htm
U.S. Department of Labor. (2017b). Defining and delimiting the exemptions for executive, administrative, professional, outside sales and computer employees (82 FR 34616). [Request for Information]. Retrieved from https://www.federalregister.gov/documents/2017/07/26/2017-15666/request-for-information-defining-and-delimiting-the-exemptions-for-executive-administrative
U.S. Department of Labor. (2017c). Administrator interpretation letter – Fair Labor Standards Act. Retrieved from https://www.dol.gov/WHD/opinion/adminIntrprtnFLSA.htm#foot
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U.S. Department of Labor. (2017f). Minimum paid rest period requirements under state law for adult employees in private sector. Retrieved from https://www.dol.gov/whd/state/rest.htm.
U.S. Department of Labor. (n.d.-a). Minimum wage. Retrieved from https://www.dol.gov/whd/minimumwage.htm.
U.S. Department of Labor. (n.d.-b). State labor laws. Retrieved from https://www.dol.gov/whd/state/state.htm.
U.S. Department of Labor. (n.d.-c). Misclassification of employees as independent contractors. Retrieved from https://www.dol.gov/whd/workers/misclassification/
UC Berkeley Labor Center. (2017) Inventory of U.S. City and County minimum wage ordinances. Retrieved from http://laborcenter.berkeley.edu/minimum-wage-living-wage-resources/inventory-of-us-city-and-county-minimum-wage-ordinances/
Statutes and Regulations
29 C.F.R. § 541 (2016).
29 C.F.R. § 541.400 (2016).
29 C.F.R. § 541.500 (2016).
29 C.F.R. § 541.601 (2016).
29 C.F.R. § 570 (2016).
29 C.F.R. § 778 (2016).
29 C.F.R. § 785 (2016).
29 C.F.R. § 785.47 (2016).
29 C.F.R. §§ 500–899 (2016).
29 U.S.C. § 206 (2012).
29 U.S.C. § 207 (2012).
29 U.S.C. § 216(b) (2016).
29 U.S.C. § 218(a) (2012).
29 U.S.C. §§ 201–219 (2012).
29 U.S.C. §§ 206–207 (2012).
Alaska Stat. §§ 23.10.050–23.10.150 (2016).
Cal. Code of Civ. Pro. § 382.
Cal. Lab. Code § 510 (2016).
Fed. R. Civ. P. 23.
Fed. R. Civ. P. 23(a).
Fed. R. Civ. P. 23(b)(3).
I.W.C. Wage Order 7-2001, § 14 (2005).
Nev. Rev. Stat. § 608.018 (2016).
Wage Equality Act of 2016, S.B. 1063 (Cal. 2016).
Court Cases
Addison v. Huron Stevedoring Corp., 204 F. 2d 88, 95 (2d Cir. 1953).
Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946).
Gen. Tel. Co. of Sw. v. Falcon, 457 U.S. 147, 157 (1982).
Hoffman-La Roche, Inc. v. Sperling, 493 U.S. 165, 169 (1989).
Nevada v. U.S. Dep’t of Labor, 227 F. Supp. 3d 696 (E.D. Tex. 2017).
O’Connor v. Uber Technologies, Inc. et al., C13-3826 EMC (N.D. Cal.).
Troester v. Starbucks Corp., No. S234969 (Cal.).
Vasquez v. Superior Court, 4 Cal. 3d 800, 821 (1971).
Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338 (2011).
Acknowledgment
We would like to thank Theodore E. Alexander, a student at the George Washington University Law School, for his contributions.
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Hanvey, C., White, J. (2018). Wage and Hour Legal Context. In: Wage and Hour Law. Springer, Cham. https://doi.org/10.1007/978-3-319-74612-8_1
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