Category: Wage and Hour Disputes

Wage and Hour Laws: What Business Owners Should Know?

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Our Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Will Help Keep Your Business Compliant

Navigating the labyrinth of wage and hour laws can seem daunting for Philadelphia business owners. However, understanding these regulations is crucial to ensuring fair compensation in your workplace. Today, we will highlight some of the most important laws and their relevance to your business operations and guide how to adhere to them.

Crucial Wage and Hour Laws

Navigating the world of wage and hour laws can be a complex task. However, understanding these regulations is integral to running a successful business. Let us take a closer look at some of the key wage and hour laws that Philadelphia business owners need to know:

  • Fair Labor Standards Act (FLSA): The FLSA is a federal law establishing standards for minimum wages, overtime pay, recordkeeping, and youth employment nationwide. It stipulates that most employees in the United States must be paid at least the federal minimum wage for all hours worked and receive overtime pay for hours worked over 40 in a workweek.
  • Overtime Rules: Understanding overtime rules is crucial for any employer. According to the FLSA and the Pennsylvania Minimum Wage Act, employees must receive overtime pay for hours over 40 in a workweek. This overtime rate must be at least one and a half times the employee’s regular pay rate.
  • Philadelphia’s Pay History Ban: To promote pay equity, Philadelphia has enacted a city-wide ban on employers asking about an applicant’s pay history during the hiring process. This progressive step aims to break the cycle of wage discrimination and ensure fair compensation for all workers.

Being proactive in understanding and implementing wage and hour laws will always be more beneficial than being reactive when a law is broken. Taking the initiative now can save you from potential legal headaches. It also communicates to your employees that you value their rights and well-being, fostering a positive work culture.

Unfamiliarity or disregard of these laws can lead to serious repercussions, including hefty fines, employee back pay, and even litigation. Such scenarios not only affect the financial health of your business but can also tarnish your reputation.

It is essential to remember that the laws highlighted in this blog are not exhaustive. Many other federal, state, and local laws govern wages and hours, and their applicability often depends on the nature and location of your business.

Promoting a Positive Work Culture Through Fair Pay

Fair pay is more than just a legal obligation; it is pivotal in fostering a positive work culture. When employees feel that their compensation is equitable and in line with industry standards, they are more likely to feel valued and respected, resulting in increased job satisfaction and morale. This, in turn, can contribute to higher productivity levels and lower employee turnover rates.

Transparent and fair pay practices reinforce a culture of trust and openness. Employees are more likely to trust management and feel secure in their roles when they believe compensation decisions are made fairly and without bias.

Implementing fair pay is an investment in legal compliance, your company’s culture, and future success. By prioritizing fair pay, you are sending a clear message to your employees that their contributions are recognized and valued, reinforcing a culture of fairness, respect, and equality.

Our Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Will Help Keep Your Business Compliant

Wage and hour laws are critical to business operations, and understanding them can help save your business from costly legal disputes. Speak with our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. about how we can help you. Contact us online or call us at 215-574-0600 to schedule a consultation. Located in Philadelphia, we serve clients in Pennsylvania and New Jersey.

Wage and Hour Compliance: Ensuring Fair Pay and Overtime Rules

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Our Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help Your Business Stay Compliant

Are you a business owner striving to create an equitable work environment? If so, understanding wage and hour compliance is a cornerstone of your role.

Wage and hour laws are federal, state, and local regulations designed to protect workers from unfair pay practices. They dictate the minimum wage, overtime pay, and other compensation-related matters. The Fair Labor Standards Act (FLSA) is the primary federal law governing these issues in the U.S. It mandates that employers must pay at least the federal minimum wage and overtime pay of one-and-a-half times the regular pay rate.

To ensure workers’ equal pay, businesses must establish a clear and consistent pay structure. This involves setting salary ranges for each job role based on market data and internal factors, such as job responsibilities and required skills.

Secondly, businesses should implement a transparent pay policy. Transparency promotes trust and allows employees to understand how their pay is determined. It also allows employees to voice their concerns if they are unfairly paid.

Lastly, businesses should conduct regular pay audits to identify any discrepancies in pay between workers performing similar jobs. This can help businesses identify and rectify unintentional biases or systematic issues affecting pay equality.

Legal Requirements for Equal Pay

The principle of equal pay for equal work is enshrined in the Equal Pay Act of 1963. This legislation prohibits wage discrimination based on sex, mandating that men and women receive equal pay for performing jobs that require the same skills, effort, and responsibility under similar working conditions.

To comply with this law, businesses must ensure that their pay practices do not discriminate based on sex. This means that a female project manager should receive the same salary as her male counterpart if they perform the same job under similar conditions. The law covers all forms of payment, including salary, overtime pay, bonuses, stock options, profit sharing, bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.

However, disparities can occur due to factors like seniority, merit, a system measuring earnings by quantity or quality of production, or any other differential based on any factor other than sex. For example, a company can legally pay a more experienced employee a higher salary than a less experienced one, even if they perform the same job, provided that experience plays a crucial role in the position. It would be illegal to pay a woman less than a man due to her sex, even if she has less experience.

It is crucial to note that “equal work” does not mean jobs have to be identical, but they must be substantially equal. Job content (not job titles) determines whether jobs are substantially equal. For instance, if a female secretary performs the same tasks as her male colleague with a “clerical assistant” title, they should receive equal pay.

Non-compliance can result in severe consequences, including lawsuits, fines, and reputational damage. Therefore, it is essential for businesses to regularly review their pay practices and make necessary adjustments to ensure compliance with equal pay laws.

Addressing Wage and Hour Compliance Issues

If your business finds that it is not paying workers fairly or in compliance with the law, immediate action should be taken to rectify the situation. This could involve adjusting the wages of affected employees, revising pay policies, or implementing new practices to prevent future issues.

Businesses should also seek legal advice to understand potential liabilities and ensure appropriate remedial actions are taken. It is important to remember that failure to comply with wage and hour laws can result in severe penalties, including fines and lawsuits.

Our Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help Your Business Stay Compliant

Labor and employment laws are confusing. However, your business must be compliant or risk costly fines and penalties. Speak with our experienced Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. about how we can help keep your business compliant. We are not your average law firm, and our attorneys are not your average lawyers. Call us at 215-574-0600 or contact us online to schedule a consultation. Located in Philadelphia, we serve clients in Pennsylvania and New Jersey.

Should Pennsylvania Increase the Minimum Wage?

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Minimum Wage

Since 2009, Pennsylvania’s minimum wage has been stagnant. Sitting at the federally mandated level of $7.25 per hour, many state officials bloviate about raising the minimum wage, but it never happens. For overtime work, employees must receive 1 ½ times their base hourly rate. There are exceptions to this rule, and determining whether a worker falls under this rule can be confusing. A lawyer can help a worker with an unpaid overtime claim if they feel they are being slighted.

For lawmakers to determine whether they should raise the minimum wage in Pennsylvania, they must look at several factors. There are benefits and disadvantages to any increase in the minimum wage.

Increased Buying Power for Workers

By increasing the minimum wage in Pennsylvania, workers have increased buying power. In other words, their dollar goes further. When a person has more disposable income, they spend more money. These spending habits help stimulate and infuse large amounts of capital into the economy.

Worker Job Losses

When government forces business to increase salaries, affected companies may cut expenses. This can come in many forms and may be unique to each business. Some businesses may cut benefits to save money while others may cut employees. By reducing the overall staff, the company reduces its financial burden and is better prepared to shoulder the cost increase for the remaining employees.

Pandemic Relief for Employees

Coming out of the Coronavirus (COVID-19) pandemic, many minimum wage workers are finding it difficult to get a job where they can support themselves, let alone support their families. As government pandemic relief programs end, workers are looking for jobs that pay more to help them survive and thrive.

An increased minimum wage would help those workers by providing them a higher rate of pay. This is money they could use to help themselves and their family re-settle after the pandemic. It also gives them the ability to spend money on leisure activities, helping the economy.

Jobs Leave Pennsylvania Without an Increase

Pennsylvania has large metropolitan areas that are close to other states. People already live in Pennsylvania and work in these neighboring states. A failure by the lawmakers to increase the minimum wage could see a larger exodus of jobs and workers to neighboring states.

Delaware and New Jersey, for example, have a higher minimum wage than Pennsylvania. If lawmakers fail to act and raise the minimum wage, more employees may seek out job opportunities in those neighboring states. Not only does this create lost tax revenue for the state, it could mean those workers end up moving to other states, further hurting the economy.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Clients Collect Unpaid Wages

The above represent a minor fraction of the arguments in favor of and against a minimum wage increase in Pennsylvania. There is much for lawmakers to consider. While they figure out what to do, however, you still have to make ends meet. The Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. can offer you guidance if you need help figuring out whether your employer has underpaid you. Contact us online or call us at 215-574-0600 to schedule an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Am I Prohibited from Discussing Salary?

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Salary might be one of the most popular topics of workplace speculation. While an employer may suggest employees not talk about salary or have a policy to prohibit them from doing so, the law actually protects an employee’s right to discuss their wages. The National Labor Relations Act (NLRA) states that employers cannot ban employees from discussing salary and working conditions. The NLRA was initially drafted regarding labor unions and organizing. The National Labor Relations Board (NLRB) argued that not allowing employees to organize and discuss workplace issues would give employers an unfair edge in bargaining.

Employees can discuss salary among themselves, and an employer cannot discharge or discriminate against employees who do. It is important to note that the law does not guarantee an employee access to salary information. Only that the employee can reveal their salary. For example, if an employee approaches Human Resources (HR) and demands to know the salary of a colleague, HR does not have to release this information. The employee can only find out the salary from their colleague directly.

An employer can ask an employee to sign a confidentiality or non-disclosure agreement (NDA). An NDA generally prohibits discussion or sharing of the company’s trade secrets, marketing strategies, sales, and other information. However, an NDA cannot prohibit the discussion of salary under the NLRA.

Why Discuss Salary at Work?

While most HR people would not advocate for employees discussing salary, there may be occasions where it is helpful. For example, suppose an employee feels they are significantly underpaid compared to a co-worker doing identical work. In that case, it may be beneficial to discuss salary among a few co-workers in the same job. This scenario could include a female worker who wants to ensure they are paid the same as a male in the same position.

A salary discussion might also be beneficial if many people in the company or a certain department believe they are being underpaid versus market rates. There are many resources employees can use to check average salaries in their geographic location or industry. If a group of employees finds they are being underpaid, they could have the leverage to demand a pay raise across the board.

Why Not Discuss Salary at Work?

There also are many good reasons not to discuss salary at work. Most of these have to do with employee morale. It is easy for someone to feel resentful or jealous of a colleague’s salary. Workplace gossip about a salary could also lead to reduced productivity and diminished teamwork.

Discussing salary could also make HR or a person’s manager feel differently toward the employee. Although management cannot fire someone for discussing salary, they can keep it in the back of their minds at performance reviews or promotion time. Additionally, a worker who makes more than anyone in the department may find themselves the target of resentment or other harmful behavior.

Sharing work tirelessly to Information

If there are valid reasons to discuss salary, do so carefully. Talk with only colleagues and co-workers that are trustworthy. Also, make everyone involved agree to confidentiality. Never discuss salary during working hours. Wait until a break or after working hours because the discussion could be risky, and it is important not to waste company time.

What Should I Do if I am Underpaid?

If, after research and discussion, an employee finds they are underpaid, they have certain rights. Their first right is to approach their manager or the HR department, armed with facts and data that show the underpayment. If the company will not budge on salary, the employee can always speak to a lawyer for legal counsel.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Workers’ Rights

Employees have rights under the law, including fair payment. If you feel your rights have been violated, contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. We help employees get fair and just treatment in the workplace. For an initial consultation, contact us online or call us at 215-574-0600. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

New Federal Overtime Rules Make Additional Workers Eligible for Overtime Pay

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Philadelphia employment lawyers can counsel clients on the new federal overtime rules.The U.S. Department of Labor recently issued a final overtime rule that will have an impact on 1.3 million American workers. These updated overtime regulations will put more money in the pockets of hardworking Americans across the country. However, critics of the rule say that it should include more employees who often work over 40 hours per week without receiving overtime pay. Currently, workers making approximately $23,660 per year may receive overtime pay, which falls well below the poverty line for a family of four. Effective January 1, 2020, workers who make an annual salary of up to $35,568 will be eligible for overtime pay. This is the first time in 15 years that changes have been made to overtime regulations.

A proposal was made during the Obama administration that would have raised the minimum salary threshold to approximately $47,000. If this passed, roughly three million additional workers would have been entitled to overtime pay, or a shorter work week. While this appealed to many workers, it did not necessarily benefit workers who were making a higher salary, but who regularly exceeded 40 hours per week. For example, a general manager at Jiffy Lube in Seattle went from making $16 an hour to an annual salary of $52,000 a year. However, due to understaffing, he often worked over 100 hours a week. As a salaried employee, he was not eligible for overtime pay. Given the long hours, his salary was less than what he would have made if he were paid a $16 an hour wage plus overtime.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Assist Clients with Employment Issues Related to Overtime Pay

If your employer failed to compensate you for overtime pay, you may be eligible for compensation. To schedule a confidential consultation, contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. at 215-574-0600 or contact us online. Located in Philadelphia, we serve clients throughout South Jersey, Pennsylvania, and New Jersey.

Department of Labor Proposes Update to the Fair Labor Standards Act’s Overtime Rates

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Philadelphia overtime lawyers are knowledgeable in all aspects of overtime and the FLSA.In March 2019, the U.S. Department of Labor (DOL) suggested an update to the FLSA’s definition of “regular pay” in order to make it easier for employees to calculate employee overtime premiums. This proposal is supported by the Society for Human Resource Management (SHRM) because the changes will provide more clarity in the overtime calculation process, therefore making it easier for employers to offer benefits to their employees without fear of violating any standards.

Currently, the “regular rate” of pay is not clearly defined, and in order to avoid violation of the FLSA standards, employers are not offering certain benefits such as public transportation subsidies, tuition reimbursement, and more. The proposal by the DOL to clarify the meaning of “regular pay” should hopefully decrease uncertainty and encourage employers to offer such benefits without fear of a lawsuit.

As of now, overtime rate must be paid once employees work over 40 hours and that it must be at least 1 ½ times their regular rate. However, overtime rates also must include all payments for employment unless it falls under one of the statutory exceptions. For example, in addition to hourly wages and salaries, the regular rate also includes most bonuses, on-call pay, commissions and more. The DOL’s proposed amendment to the FLSA would clarify that the following benefits are excluded from the regular rate calculation: tuition reimbursement, employer-provided gyms, reimbursed expenses, and more.

Hopefully, once the proposed changes come into effect, employers will offer more benefits to their employees. The proposed changes should, at the very least, create clarity in the FLSA so employees are compensated fairly for their overtime work.

For more information, call our Philadelphia overtime lawyers at the Law Office of Sidkoff, Pincus & Green P.C. at 215-574-0600 or submit an online inquiry.

  Category: FLSA, Wage and Hour Disputes
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Third Circuit Upholds District Court Ruling Ordering Employees to Pay University of Pittsburgh Medical Center over $300,000 after Withdrawing Lawsuit

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Philadelphia employment lawyers defend clients against infringements of the Fair Labor Standards Act.A group of employees sued the University of Pittsburgh Medical Center (“UPMC”), alleging that UPMC’s policy of automatically deducting a 30-minute lunch break is a violation of the Fair Labor Standards Act. Camesi v. Univ. of Pittsburgh Med. Ctr., 753 Fed. Appx. 135 (3rd Cir. 2019). During the course of litigation, the employees demanded UPMC to produce 65 million pages of documentation. UPMC objected, stating that it would be an “enormous cost” to produce that amount of documentation in the allotted timeframe. Nonetheless, UPMC produced the documents as required by the discovery requests.

The employees then withdrew the lawsuit. UPMC filed a bill of costs in District Court, requesting a total of $319,655.80. Of that total amount, $310,000 was for the cost of producing the 65 million documents requested by the employees. The District Court approved the award of costs under 28 U.S.C. § 1920. Section 1920 allows a court to tax “the cost of making copies of any materials where the copies are necessarily obtained for use in the case.”

The employees moved for review of the award and requested the District Court to reduce or vacate the amount. The District Court denied the employees request, and affirmed the amount requested by UPMC. On appeal, the Third Circuit stated, “. . . the District Court did not abuse its discretion in taxing costs against the Appellants that were also attribute to the unnamed plaintiffs. Appellants voluntarily chose to bring their claims as a class action, and their counsel presumably informed them of the risks of doing so.”

For more information, call our Philadelphia employment lawyers for Fair Labor Standards Act in Philadelphia and South Jersey at the Law Office of Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

  Category: Wage and Hour Disputes
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GNC Employees Sue Over Alleged PA Minimum Wage Act Violations

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Philadelphia overtime claims lawyers secure fair overtime pay for workers.Chevalier v. General Nutrition Centers (GNC) was a class action lawsuit filed on behalf of a group of GNC employees who argued that they should be paid time-and-a-half for any hours worked over 40, rather than merely their regular rate plus half. According to the plaintiffs, the company used unfair methods to calculate the employee’s regular rate in violation of the Pennsylvania Minimum Wage Act (PMWA).

The case addresses two main issues. First, the plaintiffs believed that the trial court should have calculated the employees’ regular rate by diving their weekly salary by 40 hours, rather than by the total hours they actually worked. However, the section of the PMWA that applies to this case authorizes the secretary of the Department of Labor and Industry to declare which regulations could define the term.

Second, the plaintiffs argued that the proper overtime pay should be time-and-a-half, according to Pennsylvania law. The court decided that there is no such thing as half-time overtime, and the PMWA requires employers to pay no less than 1-½ times the employee’s regular pay rate for hours worked in excess of 40 hours in a given workweek.

The attorney representing GNC told the court that the method GNC used to calculate overtime was fair and that it met the requirements of the Fair Labor Standards Act (FLSA) and the PMWA. He also discussed the fact that the Department of Labor and Industry did not offer an opinion about whether the practice was appropriate. He argued that the Department of Labor and Industry adopted language from the FLSA, which demonstrated their intent to calculate employees’ overtime pay based on FLSA standards.

Justice Christine Donohoe questioned that assertion due to the absence of any clear language from state regulators. She went on the say that it is not the Court’s position to try to understand the intent of an agency. Rather, the purpose of the Court is to interpret the statute.

Philadelphia Overtime Claims Lawyers at Sidkoff, Pincus & Green, P.C. Secure Fair Overtime Pay for Workers

If you have not received the overtime pay you deserve, you are urged to contact the Philadelphia overtime claims lawyers at Sidkoff, Pincus & Green, P.C. We will examine the details of your case and ensure that you receive the full overtime pay to which you are entitled. To schedule a confidential consultation, call us today at 215-547-0600 or contact us online. Our offices are located in Philadelphia, where we represent clients in employment law matters across southeastern Pennsylvania and New Jersey.

Class Action Claim Filed Against Hotel Chain for Unpaid Overtime

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Philadelphia employment lawyers represent workers with unpaid overtime claims.In the case of Diflavis v. Choice Hotels International, the plaintiff claimed that she did not receive the overtime pay that she deserved, which violated the Fair Labor Standards Act (FLSA) and the Pennsylvania Minimum Wage Act. On behalf of herself, and other employees who made similar claims, the plaintiff filed a class action and collective action claim against the hotel chain. The defendant argued that the Complaint against them should be dismissed because the plaintiff failed to adequately demonstrate that Choice Hotels was a joint employer in the case. In addition, they requested that the collective and class action claims be stricken from the complaint. The Court denied both requests.

From early June 2018 to late August 2018, the plaintiff worked as a full-time housekeeper for Clarion Hotel & Conference Center, making an hourly rate of $9.00. All Clarion Hotel housekeepers are assigned 16 rooms to service, which includes making the beds, providing clean towels, vacuuming, and general cleaning. For any rooms serviced beyond the 16 that were assigned, the housekeeper earns $5.00 per room. While housekeepers are scheduled to work five, eight and a half-hour shifts each week, they are expected to continue working until all 16 rooms have been serviced.

Overtime Violations

In order to service all 16 rooms, housekeepers often worked up to 12 hours per day without taking a break for meals. The plaintiff claimed that she worked an average of 50 to 55 hours per week, but she was only paid for 36 hours per week. She alleged that she was not paid the overtime rate of $13.50 per hour for the number of hours she worked that exceeded 40 hours. In addition, she alleged that the defendants were aware of the violations, and that they calculated housekeepers’ pay based on the number of work hours and rooms serviced that supervisors entered into payroll, rather than the actual number of hours worked and rooms serviced. The plaintiff also argued that Choice Hotels and Rama Construction Company are joint employers in the case.

The defendant argued that the joint employer allegations were flawed because the plaintiff did not satisfy the test for a joint employer, and she failed to specify whether her primary employer was Rama or Choice Hotels. However, the court ruled in favor of the plaintiff, saying that Choice Hotels did not meet the standard required to strike the plaintiff’s collective and class action claims.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green, P.C. Represent Workers with Unpaid Overtime Claims

If you have not received overtime pay for working more than 40 hours in a given week, you are urged to contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green, P.C. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are conveniently located in Center City Philadelphia, where we serve clients from Southeastern Pennsylvania and New Jersey.

Growing Number of Cities and States to Ban Salary History Inquiries

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Philadelphia wage and hour lawyers protect employees’ rights to fair pay.Cities and states across the country are passing legislation that prohibit employers from conducting inquiries into prospective employees’ salary histories. The main purpose of salary history bans are to close the wage gap that continues to exist for women and minorities. By prohibiting employers from accessing this information, these employees are better able to negotiate a fair salary.

While historically liberal states have a history of supporting legislation that supports workers’ rights, many conservative states have also started to subscribe to the idea of banning salary inquiries. For example, Maine lawmakers recently passed legislation that would prohibit employers from asking job candidates for information about salary history. The Governor of North Carolina also signed a similar order that would prevent state agencies from using an applicant’s pay history to negotiate a salary offer.

Addressing Pay Gaps

Several states are responding to the current political environment and the lack of federal rules over pay disparities by acting and passing legislation that bans pay history inquiries. In March, the House passed the Paycheck Fairness Act, which would prohibit employers from paying different salaries to similarly qualified individuals unless warranted. It is not yet known whether the bill will pass in the Senate. While these policies may not have an overnight impact on local employers, it should be a wake-up call that employers can expect broader restrictions down the road. Pay fairness has become more of a hot topic of discussion recently. West Virginia, Montana, New Jersey, Washington, and New Hampshire have considered pay history bans during recent legislative sessions.

The following states have banned employers from asking questions about pay history:

  • California
  • Connecticut
  • Delaware
  • Hawaii
  • Massachusetts
  • Oregon
  • Vermont
  • Puerto Rico

The following states have rules for state agency hiring practices:

  • Illinois
  • Michigan
  • New Jersey
  • New York
  • Pennsylvania

Philadelphia Wage and Hour Lawyers at Sidkoff, Pincus & Green P.C. Protect Employees’ Rights to Fair Pay

If an employer asks for your salary history during an interview, you are urged to contact the Philadelphia wage and hour lawyers at Sidkoff, Pincus & Green P.C. We will protect your legal rights and ensure that you are fairly compensated for the work you do based on your experience and qualifications, not on your salary history. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are in Philadelphia, where we serve clients across southeastern Pennsylvania, South Jersey, and New Jersey.