Weekly Legislative Update Nov. 7, 2022

Federal Contractor Minimum Wage Increasing Jan. 1
 
The U.S. Department of Labor (DOL) has announced that the applicable minimum wage rate for workers performing work on or in connection with federal contracts entered into before Jan. 30, 2022, or that are renewed or extended before Jan. 30, 2022,will increase to $12.15 per hour beginning Jan. 1, 2023.
 
The minimum wage rate that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $8.50 per hour.
 
Covered contracts entered into on or after January 30, 2022, or that are renewed or extended on or after Jan. 30, 2022,will increase to $16.20 per hour beginning Jan. 1, 2023.
 
The minimum wage rate that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $13.75 per hour.
 
NLRB Reminds Employers of the Importance of Applying Consistent Discipline Policies in Workplace
 
Noting the employer did not have an employee code of conduct policy prohibiting the use of derogatory language, the National Labor Relations Board (NLRB or Board) has held an automotive dealership violated the National Labor Relations Act (NLRA) by wrongfully terminating an employee for calling the owner a derogatory term. The Board explained that such derogatory language was common in the employer’s workplace.
 
The NLRB's decision reminds employers that they should create, maintain, and consistently enforce clear and narrowly tailored work rules and policies. Doing so will help an employer establish it would have taken the same action against an employee should discipline later be challenged.
 
We recommend employers have their Employee Handbook reviewed annually to ensure legal compliance.
     
 
DOL Recovers $600K in Back Wages for 1,823 Workers Due to Reported FLSA Violations
 
In separate developments, the Wage and Hour Division of the U.S. Department of Labor recently announced recovery of a total of $596,365 in back wages for 1,823 workers due to reported Fair Labor Standards Act (FLSA) violations that include failing to pay minimum and overtime wages, misclassification as independent contractors, and overlooking joint-employer obligations. 
 
Thank you to our TopGolf Government Affairs Sponsors! 
 
TIA organized a golf outing at TopGolf Las Vegas before GTE to benefit TIA’s government affairs efforts. We thank those who participated and to our event sponsors: