Legal Updates

Time Is Money: A Quick Wage-Hour Tip on … How to Calculate the Correct Overtime Rate for Hourly Employees That Earn Bonuses, Commissions, etc.

1. Introduction

If you have hourly employees that earn bonuses, commissions, or other performance payments, this article is for you.

Properly compensating such employees is often not as simple as paying “time and a half” or “double-time” for qualifying hours.  Rather, federal law, and the laws of many states, require employers to “recalculate” overtime rates to include certain types of non-hourly compensation and pay overtime at those higher rates.  Many employers fail to make such payments, and of those that attempt to pay overtime (and double-time) at rates which incorporate these additional earnings, many fail to do it correctly.  Either circumstance results in a failure to pay earned wages to employees, which may give rise to lawsuits seeking back wages, penalties, and other relief available under state and federal law.

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Illinois enacts telehealth parity bill

On July 22, 2021, Illinois Governor J.B. Pritzker signed into law a telehealth coverage and payment parity bill that will permanently expand access to and coverage for telehealth services.

Gov.Pritzker stated that “The legislation I’ll sign today will solidify Illinois as a leader in telehealth access and expansion in the nation” and “Illinois is now one of the first states in the nation to turn our emergency pandemic response into a permanent reality. Not only that, but it expands key telehealth services like Early Intervention programs for early childhood development, adding to the growing number of telehealth services the General Assembly authorized this year.” Read more…

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4 employment law lessons from the Olympic Village

Watching the Opening Ceremonies of the Olympics, I reflected on the pageantry, the stories of personal triumph over adversity, and, of course, the employment law issues. Yes, it’s plain to see (at least for any employment lawyer) that the Olympics are a flaming cauldron of employment law issues.

Let’s go to the venues for a closer look at these simmering employment law issues: Read more…

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Cybersecurity review and new ideas for listing in Hong Kong

On the evening of 30 June 2021(Beijing time), Didi was officially listed on the New York Stock Exchange. Two days after Didi’s listing, the PRC Cybersecurity Review Office published an announcement regarding the launch of cybersecurity review against Didi (the “Review Announcement”), announcing that the review would be conducted according to the National Security Law of the People’s Republic of China (the “National Security Law”), the Cybersecurity Law of the PRC and the Cybersecurity Review Measures which came into effect on 1 June 2020 (“Cybersecurity Review Measures”). The PRC Cybersecurity Review Office also announced that during the cybersecurity review, no new user was allowed to register with the Didi application. On 4 July 2021 and 9 July 2021, Cybersecurity Administration of China (“CAC”) issued two consecutive circulars, announcing that since Didi Chuxing, Didi Enterprise, and 25 other applications (collectively referred to as “Didi Apps”) had severe violations of rules against personal data collection, those Didi Apps were required to be removed from app stores. Subsequently, CAC issued the Cybersecurity Review Measures (Revised Draft for Comment) (the “Revised Draft”) to further clarify the direction for future cybersecurity review. The Revised Draft directly links cybersecurity review with listing in the United States (the “U.S.”) or other jurisdictions. Read more…

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Senate Confirms Biden Nominee Jennifer Abruzzo as NLRB General Counsel, Paving Way for Pro-Union Shift

On July 21, 2021, the U.S. Senate confirmed Jennifer Abruzzo to a four-year term as the General Counsel of the National Labor Relations Board (“NLRB” or “Board”). Ms. Abruzzo’s confirmation was by a vote of 51-50, with Vice President Kamala Harris casting the tie-breaking vote. Ms. Abruzzo was sworn in the next day, by NLRB Chair Lauren McFerran. As the NLRB notes, this is “the first time in NLRB history women are serving as both Chairman and General Counsel” of the agency.

Ms. Abruzzo has spent much of her career at the NLRB. She previously served as the Board’s Deputy General Counsel and Acting General Counsel during the Obama administration, and most recently served as Special Counsel for Strategic Initiatives to the Communication Workers of America (“CWA”), the country’s largest communications and media labor union. The CWA, like most other unions, is a strong supporter of the Protecting the Right to Organize Act, commonly referred to as the “PRO Act.”

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A Growing Number of California Counties, Including Los Angeles and San Francisco, Change Course on Indoor Masking

Counties across California are making a detour on the road to easing COVID-19 restrictions.

Los Angeles County  

On July 16, 2021, Los Angeles County issued an Order of the Health Officer (“the Order”) that requires all persons to wear face masks while in all indoor public settings, venues, gatherings, and businesses (i.e., office workplaces, retail, restaurants, theaters, meetings), with limited exceptions.  In indoor settings where there is close contact with unvaccinated individuals, the Order recommends that people consider wearing a higher level of protection, such as two masks (“double masking”) or a KN95 or N95 respirator. In addition to requiring face masks of all patrons, hosts of public indoor settings must also clearly post visible and legible signage, regardless of whether employee(s) are present, at all entry points for indoor and outdoor settings to communicate the masking requirement.

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California Court of Appeal Reaches Perplexing Conclusion That Even Employees Whose Claims Are Time-Barred Can Still Bring PAGA Representative Actions

In a decision that seems like to be reviewed by the California Supreme Court or rejected by other California Courts of Appeal, one of California’s appellate courts has issued a perplexing decision holding that even employees whose claims are time-barred can file representative actions under California’s Private Attorneys General Act (“PAGA”).

In Gina Johnson v. Maxim Healthcare Services, Inc., the Fourth Appellate District held that the plaintiff could pursue PAGA claims on behalf of other employees even though her own claims were barred by the statute of limitations.

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New rules for medical devices registration in Eurasian Union

Eurasian Economic Commission adopted Recommendations No. 15 “On amendments to Rules for medical devices registration in Eurasian economic union” on 29 June 2021. The Rules were approved by Eurasian Economic Commission on 12 November 2018.

New Recommendations amended the rules for the registration of different medical devices. New rules shall be applied from 2 July 2021.

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Delaware Set to Increase Minimum Wage to $15 by 2025

On July 19, 2021, Delaware Governor John Carney signed legislation that will gradually increase the state’s minimum wage to $15 per hour by 2025. This is a substantial increase from Delaware’s current minimum wage of $9.25 per hour. The minimum wage requirements apply to all employers who employ individuals in the state.

Following the examples set by neighboring Maryland and New Jersey, Delaware’s minimum wage increase will occur in phases. Effective January 1, 2022, the minimum wage will increase to $10.50 per hour. Thereafter, the minimum wage will increase annually on the following schedule:

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To hold a remote meeting will be easer

On July 1, 2021, Federal Law No. 225-FZ of 28.06.2021 “On Amendments to Part One of the Civil Code of the Russian Federation” (the Law) aimed at improving and increasing the effectiveness of holding remote meetings came into force.

The last year of the pandemic has revealed the urgent need for legislative consolidation and settlement of issues related to holding meetings remotely. The adoption of the Law unambiguously solves some of the accumulated problems.

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