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Franchised Employees Might Be Employees of Franchisor
In a troubling development for franchisors, a Missouri federal district court has conditionally certified a class of plaintiffs in a collective action brought against Hotshots Sports Bar & Grill under the federal Fair Labor Standards Act (“FLSA”) and Missouri's wage and hour laws. The ruling in White v. 14051 Manchester, Inc., 2012 U.S. Dist. LEXIS 170052 (E.D. Mo. Nov. 30, 2012) is concerning because it holds, at least preliminarily, that employees of independently owned franchises may be considered employees of the franchisor under the FLSA, based on a common form of control exercised in most franchisor-franchisee relationships.
The named plaintiffs in the White case are current and former servers and bartenders of Hotshots locations who claim that they were unlawfully required to participate in a tip-sharing pool with “back of the house” employees. Under the FLSA and many state wage and hour laws, tips are the property of the employee, and an employer may not require tip sharing. Employees may voluntarily elect to share or pool tips, but wage and hour laws typically forbid mandatory tip sharing.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.