Month: November 2013

Expectation damages in business cases from an economic view point

Expectation damages are damages intended to cover what the injured party expected to receive from the a contract and usually have straightforward calculations based on the contract itself or market value.

‘Reference Guide on Estimation of Economic Losses in Damages Awards’, by Robert Hall and Victoria Lazear is a frequently cited source for more discussion on business damages.  The Reference Guide is part of the courts larger manual: : Reference Manual on Scientific Evidence.

Economist Robert Hall

Economic impact of F1 race week in Austin, Texas

F1 – Austin

F1 weekend in Austin is fast approaching.  To date, the definitive study for the economic impact of F1 on the Austin economy as been performed by Dr. Hoyte of TexasEconomicImpact.com

In total, Dr. Hoyte estimates that out‐of‐state fan spending is expected to reach $201 on the Formula One event. .. he estimates
that this level of direct event spending will generate $11.6 million in tax revenues from the gain
to the state under the applicable taxes allowed to be deposited into the Major Event Trust Fund
in support of this event.

Spotlight on Oil and Gas industry

In 2011 (the latest available year), the U.S. BEA reports that the total value of goods and services produced in the Oil and Gas industry was $30.68 Billion and approximately 170,000 people worked in the industry.  The value of the goods and services produced in the Oil and Gas industry more than doubled, even after accounting for inflation since 1998.

U.S. Census video on using block level data from the American Community Survey

U.S. Census provides tutorial on using block level demographic data from the American Community Survey (ACS). Block level data is data at the lowest level of aggregation as opposed to a census tract, zip code, or higher. A block may be as small as a few streets in a neighborhood.

Block level data is provided only in the 5 year summary file and for certain tables. The data is quite useful for a number of business, commercial, and research purposes.

Olgetree Deakins attorneys discuss new California wage and hour legislation

Betsy Johnson, Office Managing shareholder in the Los Angeles Office of Ogletree Deakins discusses new California wage and hour and employment legislation in a multi-part series.

AB 10:  State Minimum Wage Increase: AB 10 amends section 1182.12 of the Labor Code to increase the minimum wage to $9 per hour as of July 1, 2014 and to $10 per hour as of January 1, 2016.

AB 241:  Domestic Worker Bill of Rights: B 241 adds section 1450 to the Labor Code and requires that individuals in household occupations (such as nannies, housekeepers, and individuals providing care for the elderly or disabled within a household) be paid overtime compensation at a rate of 1.5 times their regular rate for hours worked in excess of 9 hours per day or 45 hours per week. 

AB 442:  Liquidated Damages for Unpaid Wages: 

SB 435:  Recovery Periods: SB 435 extends requirement to pay an additional hour of pay to situations in which employers fail to provide any “recovery” periods required by Division of Occupational Safety and Health (DOSH also known as Cal/OSHA) regulations. A “recovery” period is a cool down period afforded to employees who work outside to prevent heat illness.

 

 

 

Earnings from manufacturing jobs in U.S continue to rise

Multi-ethnic workers wearing hardhats
Manufacturing on the rise in U.S.

Source: U.S. Department of Commerce, Economics and Statistics Adminstration

U.S.  Department of Commerce reports manufacturing wages and employment continues to rise the U.S. The new study uses a relatively new data source, the Quarterly Workforce Indicators (QWI), to analyze the earnings of new hires relative to incumbent workers in both manufacturing and non-manufacturing.

They find that new hires in the manufacturing sector earn more than new hires in other industries and have done particularly well since the recession began.

Highlight from the study include:

  • New hires in manufacturing enjoy an earnings premium relative to other new hires.  T
  • At the end of 2011, the ratio of new hire earnings to incumbent earnings was about 8 percentage points higher in manufacturing than in other industries.
  • Over time, the earnings of new hires relative to incumbents have been consistently higher in manufacturing.
  • Since the recession began, real average earnings for new hires in manufacturing grew 3.5 percent, while earnings of incumbents in manufacturing grew about 2.4 percent.

Seyfarth and Shaw blog discusses CA Brinker meal case in light of recent court opinions

Seyfarth and Shaw attorneys, John R. Giovannone and Brandon R. McKelvey , in their blog series, The Battle After Brinker, explore the current controversy over Brinker and what it means for employers and employees in California.

They discuss Benton v. TNS  decision  which reversed and remanded a trial court order that had denied class certification to a large class of telecommunication workers.

John R. Giovannone 

 

 

SHRM question of the day: What is the difference between a discretionary and non-discretionary bonus

 

12/11/2012  From SHRM

In order for a bonus to be considered discretionary, it should be at the sole discretion of the employer to award it, not an expectation by the employees. A discretionary bonus is a form of variable pay; the amount, requirements, timing and announcement of the bonus should not be disclosed in advance, as this may appear to be a motivator or incentive implying that meeting certain levels would guarantee a bonus or reward. In a discretionary bonus, the employer determines after the fact that there is a reason for awarding a bonus, such as reaching company and financial goals, or chooses to reward an individual employee after exceptional performance.

A nondiscretionary bonus is the opposite of a discretionary one. The employer from the outset determines the standards that are required to receive a bonus based on meeting specific criteria. The employees expect to earn the bonus if they meet the standards. An employer’s incentive pay plan that provides additional compensation for exceeding performance or productivity goals is an example of how nondiscretionary bonuses are executed in the workplace.