
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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August 22
Musk and X move to settle a $500 million severance case; the Ninth Circuit stays an order postponing Temporary Protection Status terminations for migrants from Honduras, Nicaragua, and Nepal; the Sixth Circuit clarifies that an FMLA “estimate” doesn’t hard-cap unforeseeable intermittent leave.
August 21
FLRA eliminates ALJs; OPM axes gender-affirming care; H-2A farmworkers lose wage suit.
August 20
5th Circuit upholds injunctions based on challenges to NLRB constitutionality; Illinois to counteract federal changes to wage and hour, health and safety laws.
August 19
Amazon’s NLRA violations, the end of the Air Canada strike, and a court finds no unconstitutional taking in reducing pension benefits
August 18
Labor groups sue local Washington officials; the NYC Council seeks to override mayoral veto; and an NLRB official rejects state adjudication efforts.
August 17
The Canadian government ends a national flight attendants’ strike, and Illinois enacts laws preserving federal worker protections.