The new overtime rules, which will go into effect December 1, have been challenged by two lawsuits this past week. The first suit against the Department of Labor and its Wage and Hour Division was filed by a coalition of 21 states, lead by Texas and Nevada. The second is from a collective group of business groups lead by the U.S. Chamber of Commerce. In both lawsuits, the groups claim that the DOL was “arbitrary and capricious” in adopting a higher minimum salary threshold for exempt employees. They also argue that the automatic salary adjustments every three years, or the “escalator provision,” violates the Administrative Procedures Act provision for “notice and comment” rule making when Fair Labor Standards Act (FLSA) guidelines are altered. Essentially, the lawsuits claim that the new overtime rules place an unreasonable burden on employers and on state budgets. The rule will require employers to pay overtime to salaried workers who make…Read More
“There are future doctoral dissertations waiting to be written about how and why Democrats and Republicans reversed positions on the merits of the for-profit trade-school sector.” – Charles Kolb, Department of Education Aide under Presidents Ronald Reagan and George H.W. Bush. For the last generation, GOP politicians have been evoking one person as the embodiment of the conservative ideal: Ronald Reagan. Without citing details or facts, politicians – some of whom were children at the time – will make bold claims that their values perfectly align with President Reagan’s. Further, they will harken back to an idyllic time of Reagan’s presidency, then promise voters a return to those times. When it comes to for-profit education, history actually shows that President Trump and the current GOP have taken the exact opposite position of President Reagan. In fact, they are more aligned with the Democratic party through the 1980’s. Background Of The For-Profit College Problem After World…Read More
Were you ripped off by Corinthian College? Were you promised a great education and better job prospects, yet left with nothing but a massive student loan when the college shut down and went into bankruptcy? Unfortunately, you are just one of tens of thousands of students who was defrauded by the for-profit college. But in some rare positive news, you may be entitled to some relief in the form of student loan forgiveness. Corinthian College Found Liable For Defrauding Students In March 2016, Corinthian College, which operated Everest College, Heald College, and Wyotech in California, was found liable for defrauding its students. In the $1.1 billion judgment, the college was found to have: Provided false job placement statistics in its advertising. Advertised degrees and programs that it did not even offer. Engaged in unlawful student loan practices. Misrepresented whether Corinthian College credits were recognized by other colleges. The California Attorney General at the time, Kamala…Read More
After all, employees can be held liable by the accidents caused by its employees who are under the influence. In addition, employers are responsible for maintaining a safe environment for employees, who could be at risk if a co-worker is conducting hazardous activities under the influence. Despite these legitimate business concerns, the right to privacy is a fundamental and protected right, and there are limited scenarios in which an employer can legally drug test employees. Federal Regulations – Because it is deemed to be in the public interest, Federal laws require random drug testing programs for jobs that serve certain public security and safety functions. This may extend to California residents who work for federal agencies, such as the Department of Transportation, the Federal Aviation Administration, and the Federal Railroad Administration. For example, air traffic controllers and airplane pilots are subjected to random drug testing. Employers With State Contracts or Grants – The California Government Code 8355…Read More
When the giant for-profit college ITT abruptly went out of business, thousands of students were left in the cold with worthless college credits and massive student loans that did not result in better job prospects. In addition, taxpayers were left having to pay off hundreds of millions of dollars in defaulted federal student loans. All of this has been a cautionary tale for prospective students looking to get ahead by going to college. One of the takeaways from the ITT debacle? Beware of aggressive college recruiters. As part of the ITT bankruptcy proceedings, a group of students filed an intervention, in which they attached hundreds of testimonials from former students and employees of ITT who had been deceived by ITT, or were disillusioned with the experience of having worked for ITT. Their identities were kept anonymous. The following are some powerful testimonials that illustrate that you should take a step back before falling for a…Read More
Earlier this year, the 9th U.S. Circuit Court of Appeals ruled that service advisers at automotive dealerships, unlike salespeople and mechanics, are not exempt from overtime wages. A panel of three judges found, after extensive review of the Fair Labor Standards Act (FLSA), that Congress never intended to exempt this group of employees. This lawsuit began in 2012 when service advisers at Encino Motorcars LLC, a California Mercedes Benz dealership, claimed their employer violated the FLSA by not paying them overtime compensation. In January 2013, a district court dismissed the employees’ claim, a decision that was then appealed in March 2015 by the 9th Circuit, who cited Department of Labor (DOL) regulations that the only workers who sell cars are salespeople and who service cars are the mechanics. The Supreme Court ordered the 9th Circuit to reconsider the matter without taking into account the DOL rules. The decision was then made in January of this…Read More
“Every person employed in any occupation of labor is entitled to one day’s rest therefrom in seven.” – California Labor Code 551. That sounds simple enough, right? That EVERY person in ANY occupation is entitled to one day off in seven. In fact, Labor Code 552 further elaborates that “No employer of labor shall cause his employees to work more than six days in seven.” And Labor Code 553 makes any violation of an employee’s right to a day’s rest a misdemeanor crime. Unfortunately, some employers have looked for every possible loophole to get around these laws. In Mendoza v. Nordstrom, Inc., Supreme Court Case No. S224611 (May 8, 2017), the California Supreme Court was asked to address Nordstrom’s attempts to make two employees work seven consecutive days. The employees are a salesperson and a barista who were asked to cover the shifts of other employees who could not work. As a result, they sometimes…Read More
If you were a DeVry student in the last decade, you are probably already aware that DeVry engaged in a years-long practice of advertising promises that it could not keep. In fact, DeVry agreed last year to pay $100 million to settle a lawsuit filed by the Federal Trade Commission. It also agreed to stop its practice of advertising the false statistics that 90% of its graduates found jobs within six months of graduation and that DeVry graduates were paid higher than other graduates. FTC Refunds Of the $100 million settlement, $49.4 million has been allocated to provide refunds back to eligible students. In some good news for former DeVry students, the FTC has just announced that portions of these refunds are scheduled to be issued by the end of the summer. To be eligible, you must meet the following criteria: You were enrolled at DeVry between January 2008 and October 2015; You spent at…Read More
Recently, Hurricanes Harvey and Irma wreaked havoc on Texas, the Caribbean Islands, and Florida. In addition to the devastating loss of lives, many people were left rebuilding, having suffered damage to total loss of their cars, their homes, and their businesses. Mass events like these serve as a startling reminder that accidents and disasters can hit us at any time, and just how important it is that insurance companies fulfill their obligations to their customers in a prompt and fair manner. Car insurance expert, isolated on white background. An absolutely essential part of helping people get back on their feet is insurance adjusters, who are hired for a wide range of duties relating to resolving insurance claims. Unfortunately, insurance companies often treat their adjusters as they do claimants and try to save every penny they can. This has resulted in legal battles over whether hard working adjusters are “exempt” employees and therefore exempt from receiving…Read More
The Federal Trade Commission has charged several tech support companies with fraudulently using pop up warnings as ads to scare thousands of people into purchasing unnecessary services. The defendants, who collectively have operated under the name Global Access Technical Support, were ordered by a federal court to stop all business operations and all their assets have been frozen. The accused tech companies allegedly posted ads online that mimicked ads from legitimate sources like Microsoft or Apple. They would warn consumers of virus or malware on their computers, often accompanied by loud alarms. Ads were difficult to navigate around or close and required people to call a toll-free number. Believing the warning to be legitimate, consumers would call the number and subsequently spend $200 to $400 to fix a problem that didn’t exist. Consumers would give the tech company rep remote access to their computers, taking hours to complete the “fix” and often ending up causing harm to…Read More
