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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December 5
Netflix set to acquire Warner Bros., Gen Z men are the most pro-union generation in history, and lawmakers introduce the “No Robot Bosses Act.”
December 4
Unionized journalists win arbitration concerning AI, Starbucks challenges two NLRB rulings in the Fifth Circuit, and Philadelphia transit workers resume contract negotiations.
December 3
The Trump administration seeks to appeal a federal judge’s order that protects the CBAs of employees within the federal workforce; the U.S. Department of Labor launches an initiative to investigate violations of the H-1B visa program; and a union files a petition to form a bargaining unit for employees at the Met.
December 2
Fourth Circuit rejects broad reading of NLRA’s managerial exception; OPM cancels reduced tuition program for federal employees; Starbucks will pay $39 million for violating New York City’s Fair Workweek law; Mamdani and Sanders join striking baristas outside a Brooklyn Starbucks.
December 1
California farmworkers defend state labor law, cities consider requiring companies to hire delivery drivers, Supreme Court takes FAA last-mile drivers case.
November 30
In today’s news and commentary, the MSPB issues its first precedential ruling since regaining a quorum; Amazon workers lead strikes and demonstrations in multiple countries; and Starbucks workers expand their indefinite strike to additional locations. Last week, the Merit Systems Protection Board (MSPB) released its first precedential decision in eight months. The MSPB had been […]