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Minimum Wage to Increase in 13 States

With the coming new year, 13 states will be increasing their minimum wage. Although Congress failed to raise the federal minimum wage, these states have taken action to improve the pay of many minimum wage workers. And another 11 states and the District of Columbia are considering taking action in 2014. The push for an increase in minimum wage follows growing concern about the disproportionate spread of low-wage workers, and the need to increase the amount of disposable income lower income consumers have in order improve local economies. While the…
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Overtime And Minimum Wage Protections Extended To Home Health Care Aides

In a victory for home health care workers, the White House has just announced that these workers will finally be entitled to minimum wage and overtime protections. For 38-years, these workers have been denied the same protections granted to almost all workers in America. The long awaited amendment will take effect January 1, 2015 and will impact some 2 million home care workers, one of the fastest-growing occupations in the country. The White House has commented that “such a rule would eliminate a long time injustice for a large pool…
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75th Anniversary Of FLSA Highlights Need For Increase In Minimum Wage

This year marks the 75th anniversary of the Fair Labor Standards Act (FLSA). Enacted in 1938, the FLSA provides certain minimum wage and overtime standards that apply to nearly all U.S. employers. The act covers areas such as child labor labor laws, minimum wage and overtime. Despite significant improvements in working conditions much work still needs to be done. In fact as noted in a previous overtime violations post, the number of overtime compensation violations has reached near epidemic proportions. The FLSA provides that all non-exempt workers must be received…
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President Obama Calls For Minimum Wage Hike

President Obama’s State of the Union Address included a call for an increase in the Federal minimum wage – placing a renewed emphasis on the critical issue of making ends meet for many working Americans. Obama has asked Congress to raise the minimum wage to $9 an hour from $7.25/ hour, a move that could potentially affect millions of working Americans. Minimum wage earners – such as cooks, janitors, and aides to the elderly – often struggle to make ends meet. Such an increase could help reduce the widening gap…
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Investigation Begins Into Potential Wages And Hour Violations At Forever 21

News reports that the Department of Labor has begun an investigation into the working conditions at the popular clothing store Forever 21. The United States DOL Wage and Hour division announced that they have filed an action requiring Forever 21 to cooperate with the government’s investigation into the labor practices of the company. The clothing store has been under investigation for the last four years as the result of alleged labor violations. According to federal law under the Fair Labor Standards Act, workers must be paid minimum wage and those…
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Raising The Minimum Wage Benefits All

This year there’s been an ongoing debate in Congress concerning raising the federal minimum wage. The current federal minimum wage is just $7.25/hour with the minimum cash wage for tipped workers $2.13/hour. Further, because these amounts are not adjusted for inflation the amount minimum wage workers take home is becoming increasingly tight. In fact, single parent households making minimum wage with two kids falls thousands of dollars below the poverty line. Making matters worse, in certain situations employers may fail to pay workers the total amount of compensation they are…
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Congress Seeks To Raise Minimum Wage

Raising the minimum wage has taken center stage in Congress and may prove to be a crucial issue this election season. Last week Rep. George Miller (D-Calif.) along with more than 100 House Democrats proposed new minimum wage legislation. The legislation would increase the minimum wage from its current $7.25 to $9.80 over the next three years. The last federal minimum wage increase was in 2007 and has not kept pace with the demands of workers. Nearly 47 million Americans receive just minimum wage and qualify as the “working poor.”…
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Computer Professionals Update (CPU) Act Seeks To Modify Whether Computer Professional Are Exempt Or Not-Exempt

The Fair Labor Standards Act (FLSA) sets forth overtime and wage guidelines that govern nearly every employee in the United States. Included in the FLSA are requirements that employees earn minimum wage and all employees who are not exempt be paid overtime at a rate of one and one-half times their regular rate of pay for all hours worked in excess of 40. Whether an employee is exempt vs. not-exempt can be a crucial factor in determining how much an employee earns and directly affects if a worker is entitled…
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Pharmaceutical Sales Reps Entitled To Overtime Compensation

In a victory for workers, the U.S. Supreme Court let stand a 2d Circuit decision stating that pharmaceutical sales reps are entitled to overtime pay. In Novartis, the 2d Circuit court determined that pharmaceutical sales reps are not “outside sales” people and are covered by federal wage and hour laws, entitling them to overtime pay. The court’s reason? Pharmaceutical reps do not actually make sales – they promote drugs to doctors who they hope will then prescribe these drugs. The 2d Circuit also determined that the reps don’t fit into…
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Fired Employee Entitled To Overtime Pay

If you’ve been fired and receive severance pay, can you still get paid for back wages? Three judges in a Mississippi wage and hour case concluded “yes.” Why? Because severance is not the same as wages. Severance is pay given to an employee that is fired and is considered “additional pay” on top of wages. In a Mississippi case, a woman – Karen Martin – was fired from her job with PepsiAmerica and was offered a severance package with benefits. The package came with a hitch – in order to…