Wage and Hour Issue Articles

Compensable Work Day Includes Time Spent Donning and Doffing Protective Gear

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            The U.S. Supreme Court recently ruled that employees must be paid under the Fair Labor Standards Act (FLSA) for time spent “donning” and “doffing” unique protective gear. IBP, Inc. v. Alvarez, 2005 U.S. LEXIS 8373 (2005). In addition, the Court held that employees must be compensated for time spent walking between the changing facility and work area at the beginning and end of each shift. Prior to the decision, many employers failed to pay employees for these tasks by relying on a FLSA exception relieving employers from paying for “preliminary” and “postliminary” activities.

Criminal Conviction Upheld for Failure to Pay Wages

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            The Connecticut Supreme Court upheld the criminal conviction of an employer who failed to pay wages, even though the affected employees agreed to defer payment of their accrued earnings. State v. Lynch, 287 Conn. 464 (2008). The employer began missing its biweekly payroll when it experienced cash flow problems. The owner met with his employees and obtained their implied agreement to delay payment of both past and future wages until the company acquired sufficient revenue to pay them. Some time later, each employee quit and then filed claims with the Connecticut Department of Labor for unpaid wages of more than $250,000. The Labor Department asked the Attorney General to criminally prosecute the owner.

Independent Contractor Exculpatory Agreements Are Unenforceable

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            The Connecticut Superior Court, in a case of first impression, held that negligence waivers executed by independent contractors violate public policy. Colagiovanni v. New Haven Acquisition Corp., 2006 Conn. Super. LEXIS 3387 (Nov. 15, 2006).

Miami-Dade County Enacts Wage Theft Ordinance

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            Miami-Dade became the first county in the nation to adopt a countywide wage theft law. The ordinance, effective on March 1, 2010, applies to private sector employers, prohibits wage theft, and provides administrative procedures and private causes of action. An employer found to be in violation of the ordinance will be required to pay the actual administrative processing and hearing costs as well as restitution to the employee, which would include back wages owed as well as liquidated damages of double that amount, and possibly treble damages.

Penalties for Misclassifying Employees as Independent Contractors

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            Employers are sometimes confused whether individuals providing services should be classified as employees or independent contractors. Getting it right is now even more important as Connecticut has recently amended its workers’ compensation laws to increase the penalties for misclassifications. Previously, employers who knowingly and improperly characterized employees as independent contractors, and therefore failed to provide required workers’ compensation coverage, were considered guilty of a class D felony and subject to a fine of $300 for each misrepresentation.


 

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