Yesterday, the Supreme Court heard argument for Encino Motorcars v. Navarro, a dispute arising under the FLSA. There is an exception to the FLSA for any “salesman, partsman or mechanic primarily engaged in selling or servicing automobiles.” At issue in the case is whether service advisors at car dealerships–who work at service desks, prepare work orders, and keep in touch with customers regarding work status on orders–fall within that FLSA exception or must be paid overtime. The Ninth Circuit held these service advisors were not covered by the exception, and thus entitled to overtime, creating a circuit split on the issue. The Hill summarized Wednesday’s argument.
Healthcare groups that are funded primarily by Medicaid are worried about the Labor Department’s proposed overtime rule, Politico reports. Under the new rule, the salary threshold under which workers would qualify for overtime pay would reach $50,440, a number that providers argue is unworkable for their industry. They are hoping the rule will be modified before it is finalized, at least giving them time to negotiate with states to increase Medicaid reimbursements before the law takes effect.
Intel announced earlier this week that it would lay off 12,000 workers, responding to a long global downturn in demand for PCs. The New York Times reports the layoffs are part of a larger corporate restructuring, as the company shifts from being the “PC company” to one that supplies chips for smartphones, cloud computing, sensors and other devices. Microsoft has made a similar shift over the last several years. Other former computer giants, including IBM, Dell, and Hewlett-Packard, continue to struggle. Employes affected by the restructuring will be notified within the next 60 days.
Target has raised the minimum wage of its employees to $10 an hour. According to Reuters, this comes as a response to pressure from competition–primarily Walmart–and political and social pressure, including the Fight for Fifteen movement, and the presidential campaign. Target will also raise pay for employees who already make over $10 per hour, and workers will be entitled to an annual merit raise and pay-grade hike.
Daily News & Commentary
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March 13
Republican Senators urge changes on OSHA heat standard; OpenAI and building trades announce partnership on data center construction; forced labor investigations could lead to new tariffs
March 12
EPA terminates contract with second-largest union; Florida advances bill restricting public sector unions; Trump administration seeks Supreme Court assistance in TPS termination.
March 11
The partial government shutdown results in TSA agents losing their first full paycheck; the Fifth Circuit upholds the certification of a class of former United Airline workers who were placed on unpaid leave for declining to receive the COVID-19 vaccine for religious reasons during the pandemic; and an academic group files a lawsuit against the State Department over a policy that revokes and denies visas to noncitizens for their work in fact-checking and content moderation.
March 10
Court rules Kari Lake unlawfully led USAGM, voiding mass layoffs; Florida Senate passes bill tightening union recertification rules; Fifth Circuit revives whistleblower suit against Lockheed Martin.
March 9
6th Circuit rejects Cemex, Board may overrule precedents with two members.
March 8
In today’s news and commentary, a weak jobs report, the NIH decides it will no longer recognize a research fellows’ union, and WNBA contract talks continue to stall as season approaches. On Friday, the Labor Department reported that employers cut 92,000 jobs in February while the unemployment rate rose slightly to 4.4 percent. A loss […]