Blank Rome Alert—Gig Economy More Employer-Friendly? Ask Uber!

Jason E. Reisman

Spoiler alert! Yesterday, the U.S. District Court for the Eastern District of Pennsylvania handed Uber what the Court described as Uber’s first win on its independent contractor classification for one class of its drivers: “This case is the first to grant summary judgment on the question of whether drivers for UberBLACK are employees or independent contractors within the meaning of the Fair Labor Standards Act ….” The case is Razak et al. v. Uber Technologies, Inc. et al. (Civil Action No. 16-573; 4/11/18).

Wow. Pretty significant progress for the gig economy’s foundational feature—the engagement of workers classified as “independent contractors.” I dare say that, with this decision, the gig economy may have just gotten a little more employer-friendly—at least here in Eastern Pennsylvania and at least as to Uber. Continue reading “Blank Rome Alert—Gig Economy More Employer-Friendly? Ask Uber!”

New York #MeToo Initiatives—It’s No Longer Just an HR Issue

Stephen E. Tisman and Rither Alabre

Propelled by the Harvey Weinstein scandal and the “#MeToo” movement, New York government officials have taken new steps to protect victims of sexual misconduct in the workplace.

  • The New York County District Attorney’s Office has created a special “Work-Related Sexual Violence Team” of prosecutors to investigate reports of work-related sexual violence.
  • The New York Attorney General filed suit, in response to the announcement of the proposed sale of the Weinstein Company, for civil penalties and an order of “restitution” to victims.

These actions make clear that new layers of scrutiny are being imposed to examine how employers handle sexual harassment claims. Importantly, companies and individuals faced with such claims will confront new areas of exposure—outside of traditional human resources procedures and concerns—which must be analyzed and addressed. Continue reading “New York #MeToo Initiatives—It’s No Longer Just an HR Issue”

The DOL’s Overtime Rule is Dead. . . Long Live the DOL’s Overtime Rule!

Frederick G. Sandstrom

On August 31, 2017, a federal judge in the Eastern District of Texas struck down the U.S. Department of Labor’s (“DOL”) final rule that would have transformed millions of white collar jobs into non-exempt positions under the Fair Labor Standards Act (“FLSA”). The rule, issued by the DOL in response to President Obama’s mandate to the Secretary of Labor to “modernize and streamline” the existing overtime regulations, was originally scheduled to go into effect on December 1, 2016, and would have increased the minimum salary requirement for the FLSA’s white collar exemptions from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). Conservative estimates were that application of the rule would have made 4.2 million employees eligible for overtime pay that previously were deemed exempt. The same federal judge had previously enjoined the rule in late November of last year, shortly before it was to go into effect. Continue reading “The DOL’s Overtime Rule is Dead. . . Long Live the DOL’s Overtime Rule!”