This year we have seen an unprecedented exercise of federal and state Executive Branch power to unilaterally increase private sector employee wages and other compensation. These measures portend a fundamental change the role of the Executive Branch in the labor market.
On October 26, 2015, New York Governor Andrew Cuomo signed a bill authorizing a three-year extension of the 2012 amendments to New York Labor Law Section 193, related to permissible deductions from employee wages. The 2012 amendments, which were set to expire on November 5, 2015, will now remain in effect until November 6, 2018 (the new expiration date). In light of the extension, employers should continue to comply with the Commissioner of Labor regulations issued in 2013, which define the wage deduction process employers must follow, particularly with respect to the recoupment of wage advances and overpayments.
This June, the Second Circuit moved away from the Department of Labor’s six-factor test for determining whether an intern can be exempt from FLSA minimum wage and overtime requirements and instead adopted the “primary beneficiary” test.