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USA: FLSA Amendment Bars Employers from Retaining Tips But Removes DOL Prohibition on Tip Sharing

An amendment to the Fair Labor Standards Act (FLSA) in the omnibus budget bill, “Consolidated Appropriations Act, 2018,” passed by Congress and signed by President Donald Trump on March 23, 2018, provides that an employer “may not keep tips received by its employees for any purposes, including allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit.”

U.S. Employers with EU Employees Gearing Up for the GDPR

With the continuing parade of high profile data security breaches, the concern U.S. organizations have about the security of their systems and data has been steadily growing. Almost every organization processes (collects, uses, stores, or transmits) individually identifiable data. Much of this data is personal data, including employee data, which brings heightened privacy and security responsibilities and obligations. For certain entities, these responsibilities and obligations are about to increase significantly. On May 25, 2018, the EU General Data Protection Regulation (GDPR) goes into effect. This is a game changer for those organizations subject to the jurisdiction of the GDPR, and not just because of its new data breach notification provision. The GDPR contains expanded provisions for data collection, retention, and access rights unlike those they are used to in the U.S. that will create substantial challenges for U.S. employers processing their EU employee data.

USA: Employer Can Be Vicariously Liable for Employee Data Breaches

The United Kingdom High Court recently issued a landmark liability judgment against the supermarket, Morrisons, following a data breach caused by a rogue employee. Similar results have been reached in the U.S., but this is the first time the UK Court has addressed the issue of whether an employer can be held vicariously liable under the UK’s Data Protection Act 1998 (DPA) (c 29) for a data breach committed by an employee. These kinds of cases are important reminders that irrespective of jurisdiction, malicious insiders, in particular disgruntled former employees, with access to data that external hackers can’t easily reach, often cause some of the most costly data breaches.

Jackson Lewis’ Corporate Counsel Conference

March 14, 2018 – 6:00 PM to March 16, 2018 – 1:00 PM Jackson Lewis’ Corporate Counsel Conference addresses the significant legislative and regulatory developments in workplace law and provides opportunities for discussion and collaboration about these topics. Our upcoming program will feature a robust discussion about the recent increase in sexual harassment claims in […]