Showing posts with label Fair Labor Standards Act. Show all posts
Showing posts with label Fair Labor Standards Act. Show all posts

Tuesday, June 24, 2014

"Nursing Mother" break requirement spurs investigations, lawsuits

By Michael S. Mitchell, Fisher & Phillips, LLP

A little-known section of the Patient Protection and Affordable Care Act, otherwise known as “Obamacare,” obligates employers covered by the federal Fair Labor Standards Act (FLSA) to allow a worker to take unpaid break time to express breastmilk for her nursing child.  The requirement extends for a year after the child is born.  Under the law you must:
  • make available a suitable location (other than a bathroom) that is shielded from view and is free from intrusion by coworkers or the public; 
  • permit a “reasonable” break time under the circumstances; and 
  • let the worker take such a break each time she “has need” to express milk.

Sounds Simple, But It’s Not
This all seems straightforward until one begins to ponder such things as how many daily breaks are required, how much time is “reasonable,” and so on. Many of the answers necessitate individualized evaluations based upon a particular employee’s (and child’s) circumstances.

For example, the number and frequency of breaks can depend upon a variety of things, such as the number of feedings in a baby’s normal daily schedule, the impact of a baby’s age upon feeding needs, and whether the baby is eating solid food. The U.S. Labor Department (DOL) suggests that the number of breaks called for in an eight-hour shift would “typically” be two or three.  However, more might be required during longer shifts.

The duration of a “reasonable” break is also subject to situation-specific factors. Relevant considerations would include, for instance, how long it takes the worker to walk to and from the break location, how much time she must spend expressing the milk (the Labor Department thinks that this would normally be around 15 to 20 minutes), and the amount of time she must devote to setting-up for, cleaning-up after, and adequately storing the milk produced.

There are also many other areas of uncertainty. As illustrations, what must an employer do with respect to employees who do not work at any fixed location, or as to those who work at a client’s or a customer’s premises?  The DOL has asked for public comment on these questions, but to date it has offered little guidance.

Although the law plainly says that “[a]n employer shall not be required to compensate an employee” for the reasonable break time taken, even here matters are less than clear. The DOL has said that the break could nevertheless count as compensable worktime in some situations, including when the employee has not been “completely relieved from duty” during the break.  Labor Department interpretations also take the view that an employer must pay the employee the same way it does others if she takes paid break time to express breastmilk. 

The requirement does not apply to employees who are excluded from the FLSA’s overtime provision, including those who fall with that law’s executive, administrative, professional, or “outside salesman” exemption. There is also an exception for an employer of fewer than a total of 50 workers if “undue hardship” will result from providing the breaks, but this is a high standard that will likely be difficult to prove.

Let the Claims Begin
Enforcement efforts appear so far mainly to have involved the Labor Department. The most-recent statistics released reveal that the agency found one or more violations of the break requirement in two-thirds of the 54 investigations it conducted. 

About 80 percent of the compliance problems grew out of the obligation to provide an adequate space, while a smaller percentage apparently arose from not providing break time. Employers found to be in violation reportedly agreed to observe the requirement in the future and to make employees whole for any losses resulting from unlawful conduct.

There have also already been at least some employee lawsuits. In one of them, a lower federal court found that only the Labor Department could enforce the requirement to provide a suitable break location. However, the court allowed the former employee to mover forward with her allegation that management retaliated against her when she asserted her rights. 

The potential remedies for such a claim could include more than just lost wages; the FLSA allows for “such legal or equitable relief as may be appropriate,” which might encompass additional things like compensatory damages and reinstatement to one’s job.

Our Advice?  Compliance
Restaurant management should develop a policy for dealing with the break obligation before a worker comes forward with her request. Planning points will include, among others, who will take the lead in evaluating each worker’s request, what location(s) will be provided, how management will go about arriving at the appropriate length and number of breaks, and whether there are any unusual or atypical factors to be evaluated ahead of time.

And be aware that a number of state laws require these kinds of breaks. Some of those laws provide more rights to a covered employee than the federal one does. When different break requirements apply to a particular worker, generally you must comply with whichever is more favorable to the individual.  Take this possibility into account as you formulate a policy.


Fisher & Phillips is labor and employment counsel for the Louisiana Restaurant Association.  For more information contact the author a MMitchell@laborlawyers.com or (504) 522-3830. 

Thursday, May 29, 2014

Tip Tip Hooray?

By Michelle Anderson, Attorney, Fisher & Phillips, LLP (New Orleans)

The following article generally discusses tipped employee rules that an employer may adopt for employees. The article is not intended as legal or tax advice, and any specific question regarding a particular policy or rule for your workplace should be addressed with legal counsel to ensure compliance with all applicable federal and state laws.

The simple act of tipping has become a hot bed of legal concern for the restaurant and hospitality industries.  As the Department of Labor’s enforcement efforts continue to grow and private wage and hour lawsuits increase, these industries are prime targets for tipped employee violations.  To further complicate matters, effective January 2014, the IRS implemented new guidelines for tips and service charges. While customer generosity should be encouraged, businesses in these industries need to ensure compliance with applicable laws.

The Ground Rules:
All non-exempt employees must be paid the minimum wage under federal and state law. Under the federal Fair Labor Standards Act (FLSA), tipped employees are those who regularly receive more than $30 per month in tips. The tip credit provisions of the FLSA permit an employer to pay tipped employees no less than $2.13 per hour in cash wages and take a “tip credit” equal to the difference between the cash wages paid and the federal minimum wage. The tip credit may not exceed the amount of tips actually received and, under the current minimum wage, may not exceed $5.12 per hour. For example, under federal law, an employer can pay a tipped employee $2.13 per hour and take a “tip credit” of $5.12 per hour, provided the tipped employee makes sufficient tips to cover the tip credit. If the employee does not earn sufficient tips for the tip credit, the employer must make up the difference to ensure the employee receives minimum wage for all hours worked. Employers must keep clear records to demonstrate proper application of the tip credit. 

The use of tip credit can also be complicated by state laws. Some states forbid the use of tip credit, while others impose significant record-keeping and/or notice requirements on the use of tip credit. Louisiana currently follows the federal law, which requires that employees be notified in advance if the employer will take a tip credit. Written notice is recommended.

Some employers might be tempted to not require employees to report tips under $30 per month, or  report tips beyond what brings them up to the amount of the tip credit taken.  Both of these practices are flawed and could create tax liability. 

The definition of a tipped employee for purposes of IRS reporting differs from the FLSA.  The IRS defines a tipped employee as one who earns $20 or more per month in tips.  Employees are required to report to their employer the total amount of tips they receive. Employees must provide the employer with written reports by the tenth of the following month. Employees who receive tips of less than $20 in a calendar month are not required to report their tips to their employer, but must report these amounts as income on their tax returns and pay necessary taxes.

Therefore, even if an employee is not deemed a “tipped employee” under the FLSA, per the IRS the individual may still be considered a “tipped employee” for purposes of reporting the income generated by tips.  Hence, the best practice is to simply require employees to report all tips.