Legislative and Regulatory News for the Week of May 24

Posted on May 30, 2009 by Governmental Affairs Team

The following is a summary of the legislative and regulatory news for the week of May 24, 2009:

Agency Changes

The Senate confirmed Seth Harris as deputy secretary of the Department of Labor, Randy Babbitt as FAA administrator, and Linda Puchala as a member of the National Mediation Board.

Employee Wage and Hour Law

The recently-introduced Working for Adequate Gains for Employment in Services (“WAGES") Act (H.R. 2570) would establish a base minimum wage for tipped employees.

Labor/Management Relations

The Freedom From Union Violence Act of 2009 (H.R. 2537) was introduced. This bill would impose a fine of up to $100,000 and/or a prison sentence of up to 20 years for anyone committing an act of violence or extortion during a labor dispute.

Supreme Court

President Obama named Sonia Sotomayor to be Justice David Souter’s replacement on the U.S. Supreme Court.

Work/Family Balance

The Domestic Violence Leave Act (H.R. 2515) was introduced. This legislation would amend the Family and Medical Leave Act (FMLA) by extending coverage to domestic partners and permitting leave to be taken to address acts of domestic violence, sexual assault, and stalking.
 
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Bill Would Establish Base Minimum Wage for Tipped Employees

Posted on May 28, 2009 by Jay Sumner

Last week Rep. Donna Edwards (D-Md) introduced legislation that would amend the Fair Labor Standards Act (FLSA) to establish a base minimum wage for tipped employees. The Working for Adequate Gains for Employment in Services Act or “WAGES Act” (H.R. 2570) – which has 20 co-sponsors – would take effect 90 days after the bill’s enactment, mandating that tipped employees be paid at least $3.75 per hour. This amount would increase to $5.00 per hour beginning July 1, 2011. The following year, this base amount would increase to 70 percent of the minimum wage as established under section 6(a)(1) of the FLSA, or $5.50 per hour, whichever amount is greater.

If enacted, this bill would have significant impact on the service industry. Under the terms of this legislation, the Secretary of Labor would be required to publish any increase in the base amount for tipped employees at least 10 days in advance of any change.

The WAGES Act has been referred to the House Committee on Education and Labor.

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