On August 14, 2023, the U.S. Court of Appeals for the First Circuit issued a decision—Marcus v. American Contract Bridge League—clarifying and applying the standards for determining whether an employee qualifies for the Fair Labor Standards Act’s (FLSA) administrative exemption, and thus whether the employee is entitled to overtime payments under the FLSA.
Maine recently wrapped a busy 2023 legislative session that brought several significant legal changes relevant for employers. Those changes include increasing the cap on damages for violations of the Maine Human Rights Act (MHRA), expanding the protections of Maine Equal Pay Law to include race, amending the Workers’ Compensation Act to permit individual liability for sexual harassment and sexual assault, allowing non-tipped restaurant workers to participate in tip pools, and prohibiting employers from requiring veterinarians to enter into noncompete agreements.
For many employers, a new year is a new opportunity to update policies, procedures, and agreements—including restrictive covenants. In addition to ensuring compliance with applicable state requirements as to timing, consideration, and restrictions, companies need to be aware of applicable compensation minimums for employees being asked to sign noncompetition and nonsolicitation agreements. With the start of the new year, many states have increased minimum compensation floors for such employees.
Several state and local minimum wage rates will increase in 2023, with a majority of the changes effective on January 1, 2023. The following chart lists state and certain major locality minimum wage increases for 2023—and future years, if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.
Maine recently joined the list of states—including California, Illinois, New Jersey, New Mexico, New York, Oregon, Washington, and others—with laws restricting employers’ use of nondisclosure agreements (NDAs) and confidentiality terms in settlement, separation, and severance agreements.
In spite of significant opposition from Maine’s business community, including the Maine State Chamber of Commerce and leaders in the tourism, hospitality, and small business communities, Governor Janet Mills signed into law Legislative Document (L.D.) 225, “An Act Regarding the Treatment of Vacation Time upon the Cessation of Employment” on April 7, 2022.
On January 13, 2022, in Waters v. Day & Zimmermann NPS, Inc., the First Circuit Court of Appeals became the third federal appellate court to address the application of the Supreme Court of the United States’ decision in Bristol-Myers Squibb Co. v. Superior Court of California to Fair Labor Standards Act (FLSA) collective actions. Unlike the Sixth Circuit Court of Appeals and the Eighth Circuit Court of Appeals, however, the First Circuit concluded that a federal court does have personal jurisdiction over claims asserted by nonresident opt-in plaintiffs. The First Circuit’s decision thus creates a split among federal appeals courts and raises the prospect that the Supreme Court will ultimately have to resolve the issue.
The Maine Legislature will soon consider a bill that would raise the salary threshold for overtime pay from $38,250 to $57,375 within three years. If enacted, Legislative Document (L.D.) 607 would increase the threshold for salaried overtime pay in Maine every year, from 3,000 percent of the state’s minimum wage (current), up to 4,500 percent of the state’s minimum wage by 2025.
In 2022, while the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees, several states’ minimum wage rates will increase. The chart below lists the state (and certain major locality) minimum wage rate increases for 2022—and future years if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.
The issue of the proper application of the highly compensated employee exemption under the Fair Labor Standards Act (FLSA), as it applies to employees paid on a “day-rate” basis in the oil and gas industry, has been a hotly debated issue in recent years, especially in the Fifth Circuit Court of Appeals.
In July 2021, Maine enacted a new “ban-the-box” law that limits employer inquiries into an applicant’s criminal history. Under the new law, entitled “An Act Relating to Fair Chance in Employment,” employers are prohibited from including criminal history inquiries in an application, but can engage in such inquiries during an interview or once the employer has determined that the applicant is otherwise qualified for the position.
On June 10, 2021, the First Circuit Court of Appeals upheld the dismissal of a plaintiff’s lawsuit alleging, among other things, failure to pay wages under the Massachusetts Wage Act. In Rose v. RTN Federal Credit Union, the First Circuit held that the Labor Management Relations Act (LMRA) preempted the plaintiff’s wage claims because she was a member of a union and because her employer, RTN Federal Credit Union, had an existing collective bargaining agreement (CBA) with the union that governed her wages and overtime pay.
On March 30, 2021, in Bossé v. New York Life Insurance Co. et al., the First Circuit Court of Appeals issued an important decision upholding the enforceability of an arbitration agreement that delegates the arbitrability of claims to an arbitrator, and not a court.
In Burnett v. Ocean Properties, Ltd., et al., the First Circuit Court of Appeals upheld a jury verdict for the plaintiff in his failure to accommodate claim under the Americans with Disabilities Act (ADA) and the Maine Human Rights Act (MHRA). The court’s opinion provides a useful reference for the “single integrated employer” test for liability under the ADA. More significantly, it is an important reminder for employers regarding how seriously to evaluate accommodation requests, how promptly to respond to them, and how informed employees should be throughout the process. The First Circuit’s ruling shows that the consequences of failing to adequately respond to accommodation requests could lead to a finding that the employer acted with reckless indifference and is liable for punitive damages.
Several states’ minimum wage rates will increase in 2021. The following chart lists the state (and certain major locality) minimum wage increases for 2021—and future years, if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.
Elections in the United States are scheduled for Tuesday, November 3, 2020. Not only will the office of president of the United States be contested, but all 435 seats in the U.S. House of Representatives and 35 of the 100 seats in the U.S. Senate are up for grabs. At the state level, elections will be held for the governorships of 11 U.S. states and 2 U.S. territories.
