On December 6, 2019, a divided Second Circuit panel concluded that settlement proposals in accepted offers of judgment under FRCP 68 are not subject to judicial review and approval. Mei Xing Yu et al. v. Hasaki Restaurant...more
On November 20, 2019, the Pennsylvania Supreme Court ruled that the fluctuating workweek (“FWW”) method of calculating overtime pay owed to salaried workers is prohibited by state law. Chevalier v. General Nutrition Centers...more
On January 1, 2020, the new federal overtime rule takes effect. Other than in states with already-higher minimum salaries for exemption (which include California and, for certain types of employees, New York), employers will...more
9/26/2019
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Exempt-Employees ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Highly Compensated Employees ,
Minimum Salary ,
Misclassification ,
Non-Exempt Employees ,
Over-Time ,
State Labor Laws ,
Wage and Hour ,
White-Collar Exemptions
The U.S. Department of Labor issued its final rule amending the overtime regulations today, without any significant changes from the proposed rule the agency issued in March 2019. Here’s the bottom line....more
9/25/2019
/ Bonuses ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Exempt-Employees ,
Fair Labor Standards Act (FLSA) ,
Final Rules ,
Highly Compensated Employees ,
Incentive Compensation ,
Minimum Salary ,
Minimum Wage ,
Misclassification ,
New Rules ,
Non-Exempt Employees ,
Obama Administration ,
Over-Time ,
Salaried Employees ,
Sales Commissions ,
Trump Administration ,
Unpaid Overtime ,
Wage and Hour ,
White-Collar Exemptions
The “Restoring Overtime Pay Act of 2019” (H.R. 3197, introduced by Rep. Mark Takano of California) would legislate, for the first time in U.S. history, the minimum salary for exemption under the EAP exemptions—a matter that...more
In an opinion letter issued April 29, 2019, the U.S. Department of Labor’s Wage and Hour Division concluded that a “virtual marketplace company” (“VMC”) that connects service providers with consumers is not the employer of...more
4/30/2019
/ Act or Omission ,
Corporate Counsel ,
Department of Labor (DOL) ,
Economic Realities Test ,
Fair Labor Standards Act (FLSA) ,
Gig Economy ,
Good Faith ,
Independent Contractors ,
Liquidated Damages ,
Minimum Wage ,
On-Demand Services ,
Third-Party Service Provider ,
Unpaid Overtime ,
Virtual Marketplace Companies (VMCs) ,
Wage and Hour
Even at a gathering of employment lawyers, HR professionals, and compensation veterans, one of the easiest ways to clear the room is to begin a discussion on the regular rate of pay. Few other topics, even within the general...more
4/11/2019
/ Bonuses ,
Call-Back Pay ,
Department of Labor (DOL) ,
Employee Benefits ,
Fair Labor Standards Act (FLSA) ,
Human Resources Professionals ,
Minimum Wage ,
Notice of Proposed Rulemaking (NOPR) ,
Proposed Regulation ,
Public Comment ,
Rate of Pay ,
Wage and Hour
On March 14, 2019, the U.S. Department of Labor (DOL) issued an opinion letter, FMLA 2019-1-A, addressing compliance issues under the Family and Medical leave Act (FMLA). The FMLA provides eligible employees with up to 12...more
The U.S. Department of Labor’s proposed new overtime rule was published in the Federal Register on March 22nd. As described in our earlier post, the proposed new rule would...more
3/25/2019
/ Bonuses ,
Department of Labor (DOL) ,
Exempt-Employees ,
Fair Labor Standards Act (FLSA) ,
Final Rules ,
Highly Compensated Employees ,
Incentive Compensation ,
Minimum Salary ,
Misclassification ,
Over-Time ,
Sales Commissions ,
Wage and Hour ,
White-Collar Exemptions
It’s here. The U.S. Department of Labor’s Wage and Hour Division unveiled its proposed new overtime rule today. We skipped the 200-plus pages of preamble and jumped right to the proposed regulatory amendments themselves...more
In yet another legal development calling into question a traditional independent contractor relationship in the U.S., the Court of Appeals for the Sixth Circuit determined that off-duty police officers were employees of a...more
2/14/2019
/ Appeals ,
Department of Labor (DOL) ,
Economic Realities Test ,
Employer Liability Issues ,
Independent Contractors ,
Misclassification ,
Over-Time ,
Payroll Records ,
Police ,
Risk Assessment ,
Risk Mitigation ,
Security Guards ,
Wage Statements
Our friends at Bloomberg Law are reporting that the U.S. Department of Labor (DOL) has sent a proposed new federal overtime rule to the White House Office of Information and Regulatory Affairs (OIRA). OIRA is part of the...more
On December 12, Proskauer partners Allan Bloom, Elise Bloom, and Harris Mufson delivered a webinar focused on how recent developments in the law impact the ground rules and key strategies for settlement in four distinct areas...more
12/21/2018
/ #MeToo ,
Class Action ,
Collective Actions ,
Confidentiality Agreements ,
Department of Labor (DOL) ,
Employment Contract ,
Enforcement Actions ,
Fair Labor Standards Act (FLSA) ,
FRCP 23 ,
FRCP 41 ,
Judicial Review ,
Non-Disparagement Provisions ,
OSHA ,
Securities and Exchange Commission (SEC) ,
Sexual Harassment ,
Trump Administration ,
Wage and Hour ,
Whistleblowers
In this episode of The Proskauer Brief, senior counsel Harris Mufson and partner Allan Bloom discuss recent developments in federal overtime rules. The Trump administration recently released its fall 2018 regulatory agenda,...more
Since 1966, Section 3(m) of the Fair Labor Standards Act permits an employer to take a tip credit toward its minimum wage obligation for tipped employees equal to the difference between the required cash wage (currently...more
10/22/2018
/ Department of Labor (DOL) ,
Fair Labor Standards Act (FLSA) ,
Minimum Wage ,
Obama Administration ,
Rescission ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Tips ,
Trump Administration ,
Wage and Hour
The Trump Administration unveiled its Fall 2018 Unified Agenda of Regulatory and Deregulatory Actions (the “Regulatory Agenda”) earlier this week. That’s the biannual report from the federal administrative agencies on the...more
It doesn’t seem that long ago that employers were busily preparing for the new overtime rule that would have doubled the minimum salary level for the “white collar” exemptions from $23,660 to nearly $48,000. That new...more
10/16/2018
/ Corporate Counsel ,
Department of Labor (DOL) ,
Exempt-Employees ,
Minimum Salary ,
Notice of Proposed Rulemaking (NOPR) ,
NPRM ,
Obama Administration ,
Over-Time ,
Secretary of Labor ,
Trump Administration ,
White-Collar Exemptions
Summer’s not over yet! On August 28, 2018, the U.S. Department of Labor issued four new letters in response to requests for opinions under the Fair Labor Standards Act. In this most recent slate of letters, the DOL offers...more
In an opinion letter issued on April 12, 2018, the U.S. Department of Labor concluded that 15-minute breaks throughout the day required by an employee’s serious health condition are not compensable—notwithstanding the general...more
The rules on what kinds of travel time are (and are not) compensable for non-exempt employees are complex. As opposed to exempt employees—who generally receive a salary intended to compensate them for all working time,...more
Last month, we discussed some serious concerns about the efficacy of the U.S. Department of Labor’s “PAID” program, under which employers can self-report wage and hour violations to the federal agency and negotiate a seeming...more
In an April 2, 2018 decision of otherwise narrow appeal to most employers (whether the exemption in Section 13(b) (10)(A) of the Fair Labor Standards Act for an automobile “salesman, partsman, or mechanic” applies to “service...more
4/3/2018
/ Appeals ,
Automotive Industry ,
Car Dealerships ,
Department of Labor (DOL) ,
Exempt-Employees ,
Fair Labor Standards Act (FLSA) ,
Legislative History ,
Navarro v Encino Motorcars ,
Over-Time ,
Reversal ,
Salespersons ,
SCOTUS ,
Service Advisors ,
Statutory Construction Test ,
Wage and Hour
Earlier this week, the U.S. Department of Labor’s Wage and Hour Division announced the upcoming launch of a “new” pilot program called the Payroll Audit Independent Determination program (“PAID”). Under PAID, employers can...more
As cryptocurrencies surge in value and enter mainstream consciousness, an increasing number of employers may consider compensating their employees with bitcoin, ether, or other cryptocurrencies. While a cryptocurrency...more
2/14/2018
/ Bitcoin ,
Cryptocurrency ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Foreign Currency ,
Minimum Wage ,
Over-Time ,
Payroll Periods ,
Securities and Exchange Commission (SEC) ,
State Labor Laws ,
Wage and Hour
Continuing the pro-business activities many expected from the agency, the U.S. Department of Labor has revived 17 Fair Labor Standards Act opinion letters that were published in the waning days of the Bush Administration in...more