
Fred Wang is a student at Harvard Law School.
In today’s News & Commentary, the debate over the tipped subminimum wage heats up, while the Supreme Court hears a case on overtime for highly paid workers.
The debate over wage rules for tipped workers is “heating up,” the New York Times says, as states and municipalities move to rework their tipped-worker wage laws. Here’s the controversy in a nutshell: In most states, an employee is allowed to pay a “subminimum” wage — in some places, as low as $2.13 an hour — to a worker who receives tips, so long as that worker’s total earnings in a pay period equals or exceeds the minimum wage. Critics have long argued that the subminimum-wage model is exploitative — and that it disproportionately harms women workers and workers of color. Part of the issue is that employees are rarely made whole during below-minimum pay periods. Another problem is that managers can use lucrative shifts to keep employees in line. Many businesses, however, have insisted that the system better suits the skills and needs of workers who choose tipped restaurant jobs.
In other employee-compensation news, the Supreme Court last Wednesday heard oral arguments in Helix Energy Solutions Group v. Hewitt — a dispute over whether someone making over $200,000 a year, but is paid by the day, hour, or shift, is entitled to overtime pay under the Fair Labor Standards Act. The technical question is whether Hewitt — an employee at Helix Energy who earned more than $200,000 per year on a daily rate of at least $963 — earned a “salary” (and was therefore exempt from the FLSA’s overtime requirements). As Prof. Charlotte Garden explains in SCOTUSblog, the case has important implications for classes of workers — say, nurses — who earn six figures, but on a by-shift or by-hour basis. For more on the parties’ arguments and justices’ questions, check out Prof. Garden’s SCOTUSblog recap!
Daily News & Commentary
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October 10
California bans algorithmic price-fixing; New York City Council passes pay transparency bills; and FEMA questions staff who signed a whistleblowing letter.
October 9
Equity and the Broadway League resume talks amid a looming strike; federal judge lets alcoholism ADA suit proceed; Philadelphia agrees to pay $40,000 to resolve a First Amendment retaliation case.
October 8
In today’s news and commentary, the Trump administration threatens no back pay for furloughed federal workers; the Second Circuit denies a request from the NFL for an en banc review in the Brian Flores case; and Governor Gavin Newsom signs an agreement to create a pathway for unionization for Uber and Lyft drivers.
October 7
The Supreme Court kicks off its latest term, granting and declining certiorari in several labor-related cases.
October 6
EEOC regains quorum; Second Circuit issues opinion on DEI causing hostile work environment.
October 5
In today’s news and commentary, HELP committee schedules a vote on Trump’s NLRB nominees, the 5th Circuit rejects Amazon’s request for en banc review, and TV production workers win their first union contract. After a nomination hearing on Wednesday, the Health, Education, Labor and Pensions Committee scheduled a committee vote on President Trump’s NLRB nominees […]