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Archive for the ‘Massachusetts Employment Law – General’ Category

New Overtime Regulations Will Result In Many More Workers Becoming Entitled To Overtime

May 18, 2016 Leave a comment

By, Sandra E. Kahn

On May 18, 2016, President Obama announced the publication of the U.S. Department of 2015-01-05_8-57-41
Labor’s final rule (“Final Rule”) updating the overtime regulations, and providing that employees who earn less than $47,476 annually will be entitled to overtime.

The federal Fair Labor Standards Act (“FLSA”) “white collar” exemptions are familiar to most employers. Under the FLSA, employees must be paid the minimum amount required by the statute on a salary basis, and the employee’s job duties must primarily involve executive, administrative, or professional duties. The Final Rule changes only the salary basis test, leaving in place the existing duties test.

For more details, read our full alert and visit our Employment Law Group page.

New Federal Law Protects Trade Secrets But Also Requires Changes to Employee and Contractor Agreements

May 5, 2016 Leave a comment

By: Sandra E. Kahn

The new Defend Trade Secrets Act of 2016 (DTSA) is expected to be signed into law by President Obama.  The Act will allow claims for trade secret theft to be brought under a federal civil cause of action.

Under certain circumstances, the Act will provide protection for whistleblowers who divulge trade secrets to the government in order to report wrongdoing.  As such, employers will now have to inform their employees of that protection in any agreement or contract.  It is advised that employers consult with their counsel to revise contracts as necessary.

For a more detailed explanation of the DTSA, read the full post on our Good Company blog.

2016 New Year’s News for Employers

December 28, 2015 Leave a comment

2015-01-05_8-57-41As we approach the New Year there are a few important changes to keep in mind, as well as recommendations to get your employment law practices in order.

What are these changes?

  • Minimum Wage Goes Up
  • Earned Sick Leave Safe Harbor Ends
  • Sexual Harassment Law Compliance
  • Data Protection Compliance

For all the details read our Employment Law Alert.

If you have questions about any of the above suggestions, please contact Sandy Kahn or any member of MBBP’s Employment Law Group.

Employers Cannot Pay Employees With Stock or Equity In Lieu of Cash

September 30, 2015 Leave a comment

MBBP's Wage & Hour Tip of the MonthA company with a bright future but a temporary cash shortage might be tempted to compensate employees with an ownership interest in the company (stock or equity) instead of with cash.

But, is this practice legal? Generally, the answer to this question is no. Under state and federal law, employees must be paid at least the minimum wage in cash. Providing equity, no matter how much the equity is worth, does not fulfill this requirement.

An exception to this rule is made, however, if the employee comes within the exemption for executive-business owners provided for in the federal Fair Labor Standards Act (“FLSA”). An individual who comes within this exemption is exempt from the FLSA’s minimum wage and overtime requirements.

To be exempt as an executive-business owner under the FLSA, an individual must (1) be employed in a bona fide executive capacity, (2) own at least a 20% bona fide interest in the business and (3) be actively engaged in the management of the business.

Unless an employee meets each of these requirements, paying in equity alone will run afoul of wage laws, and could result in significant liability for the employer, as well as possible individual liability for the president, treasurer, and individual “officers and agents” of the employer’s corporate entity.

For further help in determining whether your employee comes within the executive-business owner exemption or questions about paying employees with equity, contact a member of our Employment Law Group.

10 Points for Reviewing Executive Employment Agreements

September 22, 2015 Leave a comment

Employment Attorney Scott ConnollyAn executive’s employment agreement defines expectations regarding role, responsibilities and performance. It also establishes key contractual obligations for the executive and the employer concerning compensation and benefits, equity grants, the length or term of employment, early termination and its consequences, post-termination restrictions, and dispute resolution. Compensation, termination and other provisions may implicate tax rules and trigger penalties. Later, if there is disharmony in the relationship or disagreement about the parties’ obligations, these provisions may critically affect the rights and obligations of the executive.

Here are 10 important considerations when reviewing an executive employment agreement.

For more information on this topic, please contact Scott J. Connolly.

Paid Sick Leave Law Creates New Employer Obligations for Intermittent, Temporary and Seasonal Workers, Including Interns

July 7, 2015 Leave a comment

MBBP's Wage & Hour Tip of the MonthEmployers who use temporary or seasonal employees including summer interns should already be aware of the importance of ensuring that those employees are paid in compliance with federal and state law. Massachusetts employers should also be aware that the new Massachusetts Earned Sick Leave Law (the “Law”) has created additional wage and hour obligations for some temporary and seasonal workers, including summer interns. (Generally, the Law requires that employers with more than 11 employees offer both full and part-time employees paid sick time; employees with fewer than 11 employees are required to offer unpaid sick time).

The Massachusetts Attorney General’s regulations addressing the Law include a provision which entitles temporary and seasonal employees like interns who work intermittently for an employer (e.g., work for the same employer for multiple summers) to sick time. The result of these regulations is that employers covered by the Law now need to track the accrual of sick time for temporary and seasonal workers, and permit those employees to take sick time once they have worked for the employer for more than 90 days.

Under the regulations, an employee with a break in service of fewer than four months will maintain the right to use any unused earned sick time accrued before the break in service. If the employee has a break in service of between four and 12 months, the employee will maintain the right to use earned sick time accrued before the break in service, but only if the employee’s unused bank of earned sick time equals or exceeds 10 hours. Employees with a break in service of greater than 12 months will not retain any accrued sick time.

Although temporary or seasonal employees are subject to the Law’s provision that employees are only entitled to use accrued sick time 90 days after the employee’s first day of work, employees with a break in service of fewer than twelve months will maintain vesting days from the employer and will not need to restart the 90-day vesting period upon their return to the employer before they can use earned sick time.

For example, an intern who works full time for an employer from June until August will likely have accrued more than 10 hours of sick time. If that intern returns to the employer the following June, he or she will (upon working 90 total days for the employer, including days worked before the break in service) be entitled to use that accrued sick time.

For more information on the use of temporary or seasonal employees including interns or the accrual of paid sick time, please contact a member of the Employment Law Group.

Massachusetts Attorney General Issues Final Earned Sick Time Regulations

June 26, 2015 Leave a comment

The final version of tela_indexhe Massachusetts Attorney General’s Earned Sick Time Regulations contains some important clarifications to the Earned Sick Time Law, including changes from the draft regulations.  These changes include a fifth reason that leave may be taken, guidance regarding unlimited and lump sum policies, and a variety of other provisions.

Employers should review their policies to take advantage of the options provided in the new regulations.  To see what changes have been made and how they might affect you please read the full alert.