Management Update
Volume 3, Issue 7
July 2014
Ruling Allows Some Public Employees to Opt Out of Paying Union Dues

On June 30, the U.S. Supreme Court ruled that certain "partial public" employees, such as home-care aides paid by Medicaid, did not have to pay any fees to labor unions representing them, but also declined to overturn the precedent that required many public-sector workers to pay union fees.
Supreme Court Rules Some Companies Can Avoid ACA Contraception Mandate

Also on June 30, the U.S. Supreme Court carved out a new religious exemption to an Affordable Care Act provision, holding that certain closely-held corporate employers need not comply with the requirement to offer birth control coverage to their employees under religious freedom protections. 

High Court Strikes Down Obama's Recess Appointments

On June 26, the U.S. Supreme Court ruled that three recess appointments President Barack Obama made to the National Labor Relations Board in 2012 were unconstitutional. The NLRB will be forced to revisit all rulings involving invalidly appointed board members.
Department of Labor Issues a Notice of Proposed Rulemaking to Revise Definition of Spouse Under the FMLA

In response to the U.S. Supreme Court's holding in United States v. Windsor that Section 3 of the Defense of Marriage Act is unconstitutional, the DOL has issued a NPRM to revise the definition of "spouse" under the FMLA.

The full article by partner Jerry L. "Jay" Stovall, Jr. can be found here.
OFCCP Announces Rulemaking Priorities

By the end of the year, the Office of Federal Contract Compliance Programs (OFCCP) intends to propose four new rules, consistent with President Obama's pay equity agenda: (1) A rule requiring federal contractors and subcontractors to submit to the Department of Labor summary pay data, including pay data sorted by sex and race; (2) a new rule prohibiting retaliation against employees and job applicants who discuss or disclose their compensation information; (3) updated sex discrimination regulations to better implement Executive Order 11246, which prohibits contractors from discriminating against individuals in employment on the basis of race, color, sex, religion or national origin, and requires them to take affirmative action; and (4) a rule setting forth new affirmative action goals and requirements to address disparities in the representation of women and racial minorities in the construction industry.
Proposed Revisions to FLSA Regulations

In a March Presidential Memorandum, President Obama announced his proposed change to the Fair Labor Standards Act's "white collar" overtime exemptions, saying the exemptions' $455 salary threshold means that "millions of Americans aren't getting the extra pay they deserve" because "an exception that was originally meant for high-paid, white-collar employees now covers workers earning as little as $23,660 a year." If these proposed changes are implemented, employers will be forced to re-evaluate how it pays employees making an annual salary less than $52,000 who are considered exempt under the white collar exemptions.
Pressure to Increase Minimum Wage Mounts

As protests increase, 38 states have considered minimum wage bills during the 2014 session, and Connecticut ($8.70 to $10.10 by 2017), Delaware ($7.75 to $8.25 by 2015), Hawaii ($10.10 by 2018), Maryland ($10.10 by 2018), Michigan ($7.40 to $9.25 by 2018), Minnesota ($9.50 by 2016), West Virginia ($8.75 by 2015), and the District of Columbia ($8.25 to $11.50 by 2016) have enacted minimum wage increases so far in 2014. On June 2, the City of Seattle voted to raise the minimum wage to $15 an hour in three to seven years (the highest minimum wage of any city in the country). 
DOL Unveils Rule to Raise Contractor Minimum Wage

U.S. Labor Secretary Thomas Perez announced a proposed rule to raise the minimum wage for federal contract workers to $10.10 per hour, implementing an executive order signed by President Barack Obama earlier this year. 
Wage Discussions Continue with New Executive Order

On April 8, 2014, President Obama signed a new Executive Order prohibiting federal contractors from retaliating against employees who discuss their compensation with each other. This is another example of this administration's emphasis on equal pay practices.   
LWIC predicts continued employment growth for La.

The Louisiana Workforce Investment Council (LWIC) is predicting all eight of the state's metro regions will end up outpacing national growth in the short term, long term, or possibly even both. The industries expected to have the most growth through 2022 include healthcare, professional and technical, and food services.   
Risks of Misclassifying Employees

As worker classification initiatives continue to be a top priority for the Internal Revenue Service (IRS), Department of Labor (DOL), and State agencies, employers must be careful to label someone as an independent contractor-as profitable as it may seem. The risks of misclassification are significant, including liability for unpaid workers' compensation, unemployment insurance premiums, any unpaid tax withholdings, and Social Security and Medicare contributions.  
Management Update Briefings

Breazeale, Sachse & Wilson, L.L.P. presents Management Update Briefings, a labor and employment law seminar at convenient locations across the state of Louisiana.

Breazeale, Sachse & Wilson, L.L.P. Labor & Employment Attorneys 


Murphy J. Foster, III


Leo C. Hamilton


Joseph R. Hugg





Yvonne R. Olinde


E. Fredrick Preis, Jr.




Jennifer D. Sims




This electronic newsletter is provided to clients and friends of Breazeale, Sachse & Wilson, L.L.P. The information described is general in nature, and may not apply to your specific situation. Legal advice should be sought before taking action based on the information discussed. Applicable State Bar or Attorney Regulations May Require This Be Labeled as "Advertising."Anchor1