On July 23, 2012, in Harris v. Superior Court (Liberty Mutual Ins. Co.), a case that the California Supreme Court previously had reversed and remanded, the California Court of Appeal stuck by its prior conclusion and held that insurance claims adjusters do not qualify for the administrative exemption from overtime pay requirements.

Employees filed a record number of federal wage-and-hour lawsuits under the Fair Labor and Standards Act (FLSA) from March 31, 2011, to March 31, 2012, according to a chart released by Seyfarth Shaw LLP. The figures were confirmed by the Federal Judicial Center.

FLSA wage-and-hour claims exploded over the past decade — more than tripling since 2002 when only 2,035 claims were filed.

The claims forming the bulk of these numbers include misclassification of employees, alleged uncompensated “work” performed off the clock and miscalculation of overtime pay, according to Richard L. Alfred, chair of Seyfarth Shaw’s wage-and-hour litigation practice.

As employers in California are all too aware, wage-and-hour lawsuits brought under California’s labor laws increased similarly in recent years. This year, California employers received welcome guidance from the California Supreme Court in one area of wage-and-hour litigation — meal and rest periods ­— in the Brinker Restaurant Corp. v. Superior Court decision.

Owners and operators of gentleman’s clubs recently received a new arrow in their quiver in the ongoing dispute over a question that has created a barrage of lawsuits across the industry – “Are exotic dancers employees?”  A decision from the United States District Court for the Eastern District of Arkansas on July 12 answered this question in the negative, holding that exotic dancers were not employees under the FLSA or Arkansas Minimum Wage Act. 

Many employers in today’s business environment have had to make do with fewer employees to meet the constraints of smaller budgets.  As the economy shows signs of rebounding, many companies face pressure to grow their business in spite of a lack of resources to support increased hiring.  At the same time, competition for entry-level professional jobs, especially among recent college graduates, has become fierce.  Many unemployed professionals see working for free as a way to build their resumes, gain experience, get their feet in the door, and stay current in their field.  Both groups – employers and those seeking work – have increasingly turned to unpaid internships to provide educated and eager help for employers and opportunities for those in the entry-level job market.