Budget Bill's New Workplace Regulations

  • By Robert Kapitan
  • 27 Mar, 2018

Employers and worker advocates closely followed the recent budget process and the resulting omnibus budget bill. When it was introduced and ultimately signed by the President, among the 2,232 pages were several provisions that dealt with workplace issues such as tipped-employee income and minor league baseball players.

Tip Pools

After backlash from Democrats and plaintiff lawyers, the Department of Labor walked back on regulations that would have allowed restaurant employers the ability to keep tips meant for employees. Instead, the new regulations permit restaurants to divide tip income among all staff, including back-of-house cooks. Presumably, this would allow restaurants to reduce wages for cooks and fill difference with tip income, thereby reducing wages overall. If you are a tipped employee and believe your employer kept your tips, contact our office for a free consultation.

Minor League Baseball Players

A second provision of the budget bill exempts minor league baseball players from the wage and hour laws in the Fair Labor Standards Act, thus refusing to establish a minimum wage and overtime. The rider regulations attached to the budget were a result of a lobbying effort by Major League Baseball and tracks the language of the ironically titled Save America’s Pastime Act (H.B. 5580). Baseball clubs faced recent litigation by players who claimed they worked in excess of 40 hours per week during the season and their resulting pay was less than minimum wage.

By Robert Kapitan 12 Jul, 2018
In a dissenting opinion in a 2014 appeal involving the death of a trainer at the Orlando SeaWorld water park, Judge Kavanaugh wrote that the trainer, Dawn Brancheau, voluntarily accepted the risk of death due to the nature of her work. Brancheau was taking part as a trainer in a live performance when she laid down on a platform. The whale, Tilikum, was supposed to mimic her movements and "lie down" in the water by rolling over on his back. Instead, he grabbed Brancheau and dragged her underwater where she drowned. OSHA fined SeaWorld, arguing that it could have put measures into place that would have protected the trainer, such as a physical barrier. Judge Kavanaugh disagreed and found that participating in a live animal show carries with it the same risks as other forms of entertainment work, like car racing, baseball and movie stunts. The risk of significant injury, even death, according to Kavanaugh, is simply a possible and unfortunate result of that work. In other words, SeaWorld was not required to anticipate that a killer whale may attack a trainer, and take steps to avoid the danger. Whether you agree with Kavanaugh or not, we can all agree that he believes in limiting the liability of employers.
By Robert Kapitan 30 May, 2018
A recent Eighth Appellate District decision in the case of Kassay v. Niederst Management, Ltd. , 2018-Ohio-2057 (May 24, 2018)  upheld a jury verdict which awarded a terminated employee $248,900 in damages related to emotional distress caused by his termination. The jury also awarded back wages, front pay, punitive damages, attorneys' fees and interest. Of note in this case was that the amount awarded for emotional distress, because it was not supported by expert evidence from a medical professional. The terminated employee testified that he felt like less of a man because he lost his job, and the lack of an income caused arguments with his family, caused him to lose sleep, damaged his credit and  his relationship with his children suffered. The court found that this was sufficient evidence to substantiate the $248,900 award for emotional distress. What this means for you is that, if you find yourself in the unfortunate situation of being wrongfully terminated from your job, keep a diary of everything related to your job search and how the termination has affected your life. If you could not sleep that night, write it down. If there was a medical bill you could not pay and it caused an argument, write it down. Anecdotal evidence like that may be the difference in recovering damages for your emotional distress. 
By Robert Kapitan 27 Mar, 2018
The recent Congressional Budget Bill contains new laws impacting the restaurant industry and minor league baseball.
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