DOL Secures Nearly $1.2M in FLSA Back Wages, Damages for 965 Employees
The U.S. Department of Labor (DOL) Wage and Hour Division (WHD) separately announced $1,197,843 in back wages and liquidated damages owed to 965 employees by employers who reportedly committed Fair Labor Standards Act (FLSA) violations. The WHD's investigations disclosed employer actions that ran afoul of the FLSA’s minimum wage and overtime provisions; misclassified employees as independent contractors; and improperly deducted from employee wages for breaktime. The WHD also assessed civil penalties for two companies totaling $73,023 for their violations.
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IRS Clarifies Application of Deadline Extensions to COBRA
The Internal Revenue Service (IRS) has issued some much-needed guidance surrounding the application of deadline extensions that the IRS and the U.S. Department of Labor (DOL) previously issued for initial elections under the Consolidated Omnibus Budget Reconciliation Act (COBRA) and initial and subsequent premium payments.
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California Imposes Significant New Restrictions On Severance And Settlement Agreements
California Governor Gavin Newsom has signed Senate Bill (SB) No. 331into law. SB 331 amends the California Code of Civil Procedure and the California Fair Employment and Housing Act (FEHA). The law takes effect on January 1, 2022; the law will not apply to agreements entered into January 1, 2022.An employer must give an employee or former employee at least five days to consider a severance agreement the employer offers the employee. The employee may sign it sooner than five days if the employee wishes. An employer also must notify an employee or former employee to whom the employer offers a severance agreement that the employee has the right to consult an attorney regarding the severance agreement. A settlement agreement may not prevent or restrict an individual from disclosing factual information relating to all claims of harassment, discrimination, or retaliation. A non-disparagement provision in a severance or settlement agreement that releases a FEHA claim or right must notify the employee that the agreement does not prohibit the employee from discussing or disclosing unlawful acts in the workplace.
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