Workplace Fairness Law in Minnesota – the Basics.

Here’s a quick primer on workplace fairness in Minnesota.  Unfortunately, there’s no state or federal law mandating “fairness” at work.  There’s no law saying that employers need to hire good bosses or kind employees, or that employers need to make good business decisions.  So the bad news is that your employer doesn’t have to be “fair” to you.

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We Represent Minneapolis Employees.

Corporations and big businesses will always be able to pay corporate lawyers to defend them.  For most corporations, paying hourly rates of $400 – $500 to attorneys to litigate their cases is no big deal.  And – there’s no shortage of corporate law firms willing to accept the money and do their bidding.

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Approximately one year ago, the Mayor of Minneapolis, Mayor Betsy Hodges, unveiled her plan to address sick leave, scheduling, and wage theft issues in Minneapolis. In December, a 19-member group called the Workplace Regulations Partnership Group began meeting with each other and members of the public to construct an ordinance that would require employers located in Minneapolis to pay employees for days the employee is required to miss work either because the employee is sick or a member of the employee’s family is sick. The Group is made up of workers, organized labor representatives, employers, and representatives of business groups. Since December, the Group has held 14 listening sessions – sessions designed to get input from local businessowners and employees.

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Last year, we wrote about two class action lawsuits on behalf of Uber and Lyft drivers who were classified as independent contractors. The drivers, who filed suit in 2013, claimed that the mobile application transportation companies improperly classified them in order to avoid wage and hour laws. Opinions issued by the federal courts in March 2015 represented a temporary win for the drivers–allowing their lawsuits to go forward despite the companies’ attempts to have them thrown out.

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In a much-anticipated and long-awaited decision released today, the National Labor Relations Board dodged answering the question of whether college athletes are employees. The ruling, which relates to Northwestern University Football players, was made on jurisdictional grounds. As a result, it leaves open the possibility that other college athletes might be able to unionize.

The unanimous decision can be read here.

Retail giant Wal-Mart is being sued by a group of former employee pharmacists who say they were required to work outside the stores but were not paid for that work. In an amended complaint filed a few weeks ago, the former employees argue that they were required to study and take immunization training at home but were not paid for that time.

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On March 11, 2015, the U.S. District Court for the Northern District of California handed down opinions in Cotter v. Lyft, Inc., and O’Connor v. Uber Technologies, Inc. The opinions, which represent at least a temporary win for the drivers who brought suit, highlight the ever-increasing difficulties relating to the classification of employees pursuant to wage and hour law. The two class actions by current and former drivers for Lyft and Uber allege that the companies inappropriately classify them as independent contractors rather than employees.  The courts denied motions by Uber and Lyft to have the cases thrown out of court, ruling that whether the drivers must be considered employees by law is a question of fact to be resolved at trial.

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The most recent in a string of such lawsuits, a former Marc Jacobs intern has initiated a class action lawsuit against the fashion designer for failing to pay interns proper minimum wage and overtime wage rates.  Plaintiff Linney Warren sued Marc Jacobs alleging that she often worked 70-hour weeks in May, fetching coffee, moving raw materials between studios, sorting fabrics, fixing patterns, and sewing. Other companies recently hit with similar lawsuits include Fox Entertainment, Lions Gate Entertainment, Coach, and more.

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Last week, in a move that will lead to millions more employees being eligible for overtime wage rates for hours worked over 40, President Obama signed an executive order modifying regulations contained in the Fair Labor Standards Act (“FLSA”).

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Historically, owners and managers of strip clubs have adhered to a business model that classifies exotic dancers (often called “strippers”) as independent contractors rather than employees.  By classifying dancers as independent contractors, employers are able to reap the financial benefits of having dancers work for them (and, as a result, turning a profit) while simultaneously avoiding having to pay the dancers for their work, paying into social security, and potentially paying unemployment insurance and workers compensation.  This business model, however, may be quickly eroding.

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Lessors, Inc. is a national trucking company based in Eagan, Minnesota.  On October 16, 2013, on behalf of current and former Lessors employees, Madia Law filed a class and collective action wage and hour lawsuit against Lessors in United States District Court. The plaintiffs, on behalf of themselves and other employees, allege that Lessors has purposely denied employees overtime pay.

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Madia Law filed a class and collective action lawsuit in February against Regency Beauty Institute (a national for-profit cosmetology school) on behalf of current and former employees in Regency’s Admissions Department seeking unpaid overtime wages.  On July 15, U.S. District Court Judge Donovan Frank granted Plaintiffs’ Motion for Conditional Class Certification

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A bipartisan unanimous vote by the Minnesota House of Representatives and a near unanimous vote by the Minnesota Senate resulted in a major victory for employees.  The recent amendments to the Minnesota Payment of Wages Act, signed into law by Governor Mark Dayton, clarified the ability of employees to recover unpaid wages. The amendments help to protect employees’ rights all throughout Minnesota.

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