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Labor Shortages Can Create Unintentional Wage and Hour Liabilities

Employers facing worker shortages are having to use creative means to get their necessary work done. These shortages are especially apparent in the hospitality industry, where restaurants and other employers are scrambling to...more

Hospitality Employers Would Have to Rethink Assignments Based on New Tip Credit Interpretation

The seemingly never-ending battle over interpretation of the Fair Labor Standards Act’s tip credit provision took another turn Monday. The U.S. Department of Labor’s Wage and Hour Division issued proposed rules that would set...more

U.S. Labor Department Signals Potential Changes for Gig Workers by Withdrawing Independent Contractor Rule

On Wednesday, the federal Department of Labor announced its decision to withdraw regulations issued during the final weeks of the Trump administration that defined the difference between employees and independent contractors...more

U.S. Labor Department Resumes Demands for Liquidated Damages During Wage and Hour Investigations

Under the Fair Labor Standards Act, employers found liable for failure to pay overtime or minimum wages can be assessed liquidated damages in an amount equal to the unpaid wages. Prior to the Trump administration, the U.S....more

When Must Employers Pay Employees Who Are On Call?

We have had a number of recent questions from clients regarding when employees must be paid if they are on standby or on-call duty. Typically, this means that the employee must leave a number where they can be reached and, if...more

If Employees Take a Day Off Before PTO Has Accrued, Can Employers Deduct the Absence From Their Salary?

We had a recent question from a client about the intersection between a somewhat unusual paid-time-off policy and the treatment of salaried exempt employees under the Fair Labor Standards Act. Under the PTO plan, employees...more

U.S. Labor Department Says Travel Time During Partial Telework Days Is Not Compensable

According to U.S. Department of Labor regulations issued under the Fair Labor Standards Act, if a non-exempt employee reports to work in the morning and then travels during the working day to another worksite, that travel...more

U.S. Labor Department Proposes Definition of Independent Contractors

On Tuesday, the federal Department of Labor issued proposed regulations defining the difference between employees and independent contractors under the Fair Labor Standards Act. If finalized and deferred to by courts, these...more

Employee Bears Burden of Showing Bonus Was Non-Discretionary in Overtime Claim

One of the most frequently violated provisions of the Fair Labor Standards Act involves the effect of bonuses or other incentive compensation on the rate used to calculate overtime. For non-exempt employees, the employer must...more

U.S. Labor Department Explains Employers' Obligation to Record Teleworking Time

As many employees continue to work from home during the COVID-19 pandemic, on Monday the Department of Labor issued a field assistance bulletin reminding employers of their legal obligation to keep accurate records of all...more

U.S. Labor Department Waives Double Damages During Administrative Investigations

If an employer fails to comply with federal overtime or minimum wage requirements imposed under the Fair Labor Standards Act, it can be held liable not only for unpaid wages, but also for liquidated damages equal to that...more

Prospective Employees Cannot Bring FLSA Retaliation Claims

As with most federal labor laws, employers cannot retaliate against employees who complain about wage payment violations under the Fair Labor Standards Act. What happens, however, when a prospective employee claims that they...more

U.S. Labor Department Expands Types of Businesses That Can Claim Retail Overtime Exemption

Section 7(i) of the Fair Labor Standards Act provides an exemption from the usual overtime pay requirements for certain commissioned employees of retail or service establishments. For decades, the U.S. Department of Labor has...more

Under New Rules, More Employers May Benefit From Fluctuating Workweek Calculation

The Fair Labor Standards Act allows employers to pay non-exempt employees whose hours vary under a pay method that can reduce the impact of unpredictable working time. Under the fluctuating workweek (FWW) method, employees...more

U.S. Labor Department Issues FAQs on COVID-19 Pay Issues

On Tuesday, the U.S. Department of Labor’s Wage and Hour Division released a “Frequently Asked Questions” guidance on the impact of employer’s COVID-19 containment measures on pay requirements under the Fair Labor Standards...more

U.S. Labor Department Finalizes Rule Limiting Joint Employer Liability

In April 2019, the U.S. Department of Labor’s Wage and Hour Division published proposed rules dealing with the definition of joint employment under the Fair Labor Standards Act. Joint employment status means that two or more...more

New Minimum Salaries Now in Place for Overtime Exemptions

As of January 1, new minimum salary levels took effect for employers claiming certain exemptions from the overtime provisions of the Fair Labor Standards Act. For employees who meet the duties requirements of the executive,...more

U.S. Labor Department Issues Final Rule on Overtime Pay Exclusions

Employees subject to the overtime provisions of the Fair Labor Standards Act must pay time and one-half the employee’s regular rate of pay for hours worked over 40 in a given week. As employers began offering new perks to...more

U.S. Labor Department Proposes Rules on Bonus Pay for Fluctuating Workweeks

Last Monday, the U.S. Department of Labor’s Wage and Hour Division issued proposed regulations that would clarify employers’ use of incentive pay under the fluctuating workweek (FWW) pay method. FWW is an alternative pay plan...more

U.S. Labor Department Proposes Rules to Expand Use of Tip Pools

Last year, Congress amended the Fair Labor Standards Act to clarify circumstances under which employers can require employees who receive tips to share (or pool) those gratuities with other employees. Last Tuesday, the...more

Salary Increase for White-Collar Overtime Exemption Takes Effect January 1

Last week, the U.S. Department of Labor’s Wage and Hour Division adopted final regulations revising the salary requirements for employers that claim the executive, administrative, or professional exemptions from the minimum...more

Bonuses Paid by Third Parties Excluded From Regular Rate for Overtime Calculation Purposes

Perhaps the most frequently violated provision of the Fair Labor Standards Act is that law’s requirement that non-discretionary bonuses be included in non-exempt employees’ regular rate of pay used for purposes of calculating...more

How Downsizing or Restructuring Can Impact the Executive Overtime Exemption

In recent months, we have had several situations where clients were assessed back wages for overtime relating to misclassification of managerial employees. Under 29 C.F.R. §541.104, employees eligible for the executive...more

Truckers' Off-Duty Sleeping Time Not Compensable Under FLSA

Interstate truck drivers are generally exempt from the overtime requirements of the Fair Labor Standards Act. However, this statutory exemption does not apply to minimum wage obligations, and employers are therefore required...more

Employers Consider Switching Exempt Employees to Non-Exempt to Avoid Legal Risks

Over the past decade, EmployNews has chronicled waves of class and collective action litigation based on claims that employees have been misclassified as exempt from the overtime requirements of the Fair Labor Standards Act....more

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