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U.S. Master™ Wage-Hour Guide, 2007 Edition
Presents a first approach to the Fair Labor Standards Act (FLSA), summarizing
the basic legislation, demonstrating how the rules apply to particular
employment situations, and exploring practical aspects of employment arrangements
in light of the federal wage and hour law.
American Airlines has asked the presiding judge to reverse a recent jury verdict in Boston federal court that found the carrier's tipping policy violated Massachusetts wage law. The airlines announced on May 1 that it would appeal a damages award to nine Boston skycaps. A tenth skycap, based in St. Louis, was unable to recover because he is not covered by Massachusetts law. The airlines also asked the court for a new trial.
American contends its motion is partly based on the fact that eight of the skycaps who were awarded damages were not employees of American Airlines, but rather, were employees of a subcontractor.
American Airlines also announced May 1 that, effective immediately, it will implement a no-tipping policy for all assistance with passenger baggage at Boston's Logan Airport. This change is to ensure that American Airlines is in compliance with the Massachusetts law in light of the recent verdict.
G2 Services, the vendor that provides skycap and other services to American Airlines at Logan Airport, has advised the carrier that all of its Boston skycaps will receive immediate hourly wage increases that are in full compliance with all federal and state hourly wage laws. The one skycap directly employed by American at Boston has previously been paid at rates well above federal and state laws; he will receive a wage increase as well.
The airline said it is making the changes at Boston because of the unique nature of the state's wage law and its tipping provisions, as well as a recent amendment to Massachusetts wage and hour laws that will make triple damages automatic for violations, effective July 13, 2008.
According to American, while it believes it has always been in compliance with the state's tips law, because of the lawsuit's outcome and the potential length of the appeals process, it felt immediate changes were necessary to ensure compliance with the unique tips law in Massachusetts. The carrier said it currently has no intention to implement such changes in other states.
For more information on this and other topics, consult CCH Employment Practices Guide or CCH Labor Relations.
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