News and Articles

Legal Update - March 2020

Yogi Patel - Wednesday, March 04, 2020

Dear Valued Clients, Colleagues and Supporters: This month's newsletter will focus on: 1) Liability for Foreign LLC Owners in Wage and Hour Cases; 2) Recent Enforcement of New York City's Sick Leave Law; and 3) An Update to the Federal Joint Employer Rule.

Liability for Out-of-State LLC Owners

As of February 10, 2020, the ten largest owner members of out-of-state limited liability companies can be held liable for wage and hour violations under New York Labor Law. Previously, the law only allowed for personal liability against members of New York (domestic) LLCs. Now, members of LLCs formed out of state but doing business in New York can be held personally liable for wage and hour violations involving employees. To establish such liability, an employee must first be awarded a judgment against the LLC itself, demonstrate that it has been unpaid, and then give the LLC members advanced written notice that they may be held personally liable. Member liability is "joint and several," meaning each applicable member may be required to pay the full amount, though they may seek reimbursement from the other members.

Enforcement of NYC Sick Leave Law

In a case that has made headlines, a Chipotle employee who works in Manhattan has demonstrated the consequences for employers if they do not abide by the New York City's Paid Safe and Sick Leave Law (the "Law"). As we have previously covered, the Law entitles employees of New York City businesses with 5 or more workers to accrue up to 40 hours of paid time off for various uses, including caring for ill family members. This particular employee was fired by Chipotle for missing work to care for her sick father and pregnant daughter last fall. The employee filed a complaint with the Department of Consumer and Worker Protection in January, which resulted in the employee receiving her job back, payment for the sick leave she was entitled to, plus an additional $2,500 for her retaliatory firing. Employers should take note and ensure their leave policies are in compliance and their managers are well-trained to avoid violations and swift penalties.

Update to Federal Joint Employer Rule

Under the Fail Labor Standards Act, ("FLSA"), the main federal statute on wage and hour laws, it is possible for an employee to have multiple "employers" for the purposes of establishing violations under the FLSA. Whether an employee has more than one employer is assessed under the "joint employer" doctrine. As of March 16, 2020, the new rule regarding the joint employer doctrine as released by the Department of Labor sets forth a four-factor test in assessing whether a business is a joint employer. The rule requires looking at whether the alleged employer 1) can hire or fire the employee; 2) can supervise or control the employee's work schedule or conditions of employment to a substantial degree; 3) can determine the employee's rate or method of pay; and 4) maintains employment records. These factors are weighed together and none is dispositive alone. While this rule is very similar to the previous rule, the DOL made it clear that a second employer must actually exercise one of these factors, not just theoretically have the ability to do so. Business owners, particularly those that share resources and staff with others, are encouraged to discuss the joint employer doctrine with their counsel to fully understand their rights and obligations.

Readers are encouraged to follow us on Twitter (@lloydpatelllp) and Facebook to receive updates on these and other issues throughout the month.

Trackback Link
Post has no trackbacks.

Recent Posts


Newsletter Domain Name marijuana usage Joint-Employer Relationship Employee Manuals and Policies #meToo entrepreneur Fair Workweek Law Nanny Audit Household Employees Overtime Rules Divorce Attracting Investment Overtime Exemptions New York Earned Sick Time Act Unionization Trademark licensing Federal Acquisition Regulatory Council NY payroll law COVID-19 Salary History Inquiries Postnup Federal Contractors Economic Injury Disaster Loans Public-Sector Union Fees New York City Human Rights Law Start-up Ventures Employment Offer/Agreement Glatt v. Fox Searchlight Pictures Credit Checks AirBnB Worker's Rights New Address Fair Pay and Safe Workplace Executive Order Executive Negotiation Sexual Harassment and Discrimination In The Workplace Trade Secrets NLRB federal Department of Labor Firm Announcements Browning-Ferris Case Fair Labor Standards Act (FLSA) Tax-Deferred Savings Westchester Safe and Sick Time Laws Trademark Law Ban the Box Illegal rentals Corporate Law I-9 Verification stocks NYC Salary History Law Fair Play to Pay Act Sexual Harassment policy Right to Unionize Unions Mandatory Class Action Waivers Credit Workplace Requirements Security Employer Mandate Hairstyle Discrimination Nobel Prize U.S. Department of Labor National Labor Relations Board NYC Sexual harrassment law Payroll Scams Fair Work Week Legislation Lactation Law sexual harassment training Webinar Sexual Harassment Transgender protections employment discrimination lawsuits Plastic Bag Ban Pregnancy Interns Womens Rights NYC Human Right's Law's Federal Overtime Law Trade Secrets Act Families First Coronavirus Response Act Federal Small Business Assistance Internet Law NYC Sick Leave Law Web Domains Health Care Prenup workplace discrimination Glatt v. Fox Searchlight Pictures, Inc. Apple vs. FBI Interns as Employees Independent Contractor Technology Credit History commuter benefits Negotiating drug testing graduate students Freelance Isn't Free Intellectual Property Employment Contracts Wage Theft Protection Act $15 Minimum Wage National Labor Relations Act Alter-Ego Doctrine Paid Family Leave Interview Series Westchester County implementing new leave laws Executive Severance Arbitration Agreements Out-of-State LLC Owners EEOC Filing Requirement NQSO Housing Law Privacy LinkedIn Federal Joint Employer Rule Employment Law Employee Salary Histories Marijuana Testing Fair Chance Act Wage and Hour Law ACA Non-Qualified Stock Options Landlord-Tenant Law Department of Labor Fair Labor Standards Act Criminal Record Real Estate Law Human Rights Law Affordable Care Act Emergency Economic Injury Grants Minimum wage Paycheck Protection Program Business Selling Business Immigration Status Business Law Facebook Privacy and Litigation


EDIT - blog-container - This controls the styles for the headings

EDIT - BlogTagCloud - Font style


  • EDIT  - post-body - Font style

EDIT - side-panel - This is the colour of the sidebar headings

Snap | BC Module - Blog - Blog Description

Snap | BC Module - Blog - Blog Title

EDIT - Snap | BC Module - Blog - Date - This is the date box style

EDIT - Snap | BC Module - Blog - Post Content - Font style

EDIT - Snap | BC Module - Blog - Post Title - Heading style

EDIT  - Snap | BC Module - Blog - Sidebar Content - Font style

EDIT - Snap | BC Module - Blog - Sidebar Title - Heading style

latest blog title snap text


Disclaimer: Nothing on this website is or should be construed as legal advice.
An attorney-client relationship does not exist with our firm unless a signed
retainer agreement is executed, and we do not offer legal advice through
this site or any of the content located on it. For legal advice for your
particular circumstances, please contact us directly.