A special provision of the Fair Labor Standards Act allows hospitals and other health care institutions to average employee hours over a 14-day period instead of the usual single workweek overtime basis. Last week, the...more
Human resources professionals’ eyes sometimes start to glaze over when the discussion turns to technical definitions of overtime calculations. However, the meaning of the term “regular rate” under the Fair Labor Standards Act...more
The Department of Labor’s decision to again issue opinion letters in response to employer questions has resulted in some interesting agency positions. Two recent letters address unusual situations not accounted for in federal...more
Last week, we reported on new proposed Department of Labor regulations that would raise the minimum salary for claiming the “white collar” overtime exemptions to $35,308 per year. In addition to the new salary level, the...more
3/18/2019
/ Comment Period ,
Corporate Counsel ,
Department of Labor (DOL) ,
Exempt-Employees ,
Fair Labor Standards Act (FLSA) ,
Minimum Salary ,
Over-Time ,
Proposed Rules ,
Public Comment ,
Wage and Hour ,
White-Collar Exemptions
Last year, the Department of Labor’s Wage and Hour Division clarified its position regarding work by tipped employees that allows the employer to claim the employee’s tips in order to constitute the full federal minimum wage....more
3/14/2019
/ Department of Labor (DOL) ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Hospitality Industry ,
Minimum Wage ,
New Guidance ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
On Thursday, the federal Department of Labor released long-awaited proposed regulations that would replace Obama-era increases to the salary level required for employers to claim the Part 541 Executive, Administrative, and...more
In some situations, developing a creative approach toward overtime pay can cost the employer more than if it had simply paid time and one-half overtime in the first place. On February 8, the Fourth Circuit Court of Appeals...more
2/20/2019
/ Appeals ,
Class Action ,
Damages ,
Department of Justice (DOJ) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Fluctuating Workweek ,
Jury Verdicts ,
Minimum Salary ,
Pay Rates ,
Unpaid Overtime ,
Wage and Hour
Most human resources professionals are generally familiar with the saga surrounding the U.S. Department of Labor’s attempts to increase the minimum salary for claiming overtime exempt status under the Fair Labor Standards...more
Nonprofit entities often question the dividing line between volunteer work and work considered compensable employment. On December 21, the federal Department of Labor’s Wage and Hour Division issued an opinion letter...more
As previously reported in EmployNews, litigation involving pay for tipped employees continues to vex employers in the hospitality industry. Many of these cases involve varying interpretations of the Fair Labor Standards Act’s...more
11/19/2018
/ Collective Actions ,
Department of Labor (DOL) ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Hospitality Industry ,
Minimum Wage ,
Obama Administration ,
Restaurant Industry ,
Reversal ,
Tip Credit ,
Tipped Employees ,
Tips ,
Trump Administration ,
Wage and Hour
Employers in the hospitality industry continue to face class and collective action lawsuits based on alleged violations of minimum wage requirements for tipped workers. Most of this litigation involves interpretation of the...more
Last month, the federal Department of Labor issued a series of opinion letters addressing various questions under the Family and Medical Leave Act and Fair Labor Standards Act. One interesting interpretation involved whether...more
In its recent term, the U.S. Supreme Court held in Epic Systems Corp. v. Lewis that the National Labor Relations Act does not prohibit mandatory arbitration agreements requiring that employment disputes be subject to...more
As we previously reported, the recent federal budget legislation includes a new amendment to the Fair Labor Standards Act that resolves a dispute over tip pooling practices. The law overrules a 2011 Department of Labor...more
The line between volunteer and unpaid labor can be difficult to distinguish. When do people freely agree to donate their time and services, and when are they persuaded or even coerced to do so?...more
Earlier this month, the U.S. Department of Labor’s Wage and Hour Division issued a new fact sheet explaining the applicability of overtime exemptions under the Fair Labor Standards Act to occupations in higher education....more
Last year, the Department of Labor’s Wage and Hour Division announced that it would again begin issuing opinion letters with regard to questions about wage payment practices. Many employers suspected that the agency ceased...more
Last Monday in a 5-4 decision, the U.S. Supreme Court held that automotive service advisors fall within the Fair Labor Standards Act’s statutory overtime exemption applicable to car salespersons and mechanics. This decision...more
4/9/2018
/ Appeals ,
Car Dealerships ,
Department of Labor (DOL) ,
Exempt-Employees ,
Fair Labor Standards Act (FLSA) ,
Legislative History ,
Navarro v Encino Motorcars ,
Over-Time ,
Patent Litigation ,
Reversal ,
SCOTUS ,
Service Advisors ,
Statutory Construction Test ,
Wage and Hour
We frequently receive questions from employers faced with employees who have worked unauthorized overtime and who demand payment for hours the employer says it neither requested nor needed. The employer asks whether the...more
The federal Department of Labor’s Wage and Hour Division recently announced a six-month self-audit pilot program intended to allow employers to review and correct overtime and minimum wage violations. The Payroll Audit...more
President Trump has signed into law an omnibus federal budget for fiscal year 2018. Among the bill’s provisions is a compromise intended to end litigation and regulatory uncertainty over employers requiring mandatory tip...more
For employers in the hospitality industry, tipping policies continue to pose significant litigation risks. A number of restaurant groups have faced recent class and collective action claims based on allegations that the...more
3/7/2018
/ Appeals ,
Department of Labor (DOL) ,
En Banc Review ,
Fair Labor Standards Act (FLSA) ,
Hospitality Industry ,
Minimum Wage ,
Restaurant Industry ,
Statutory Interpretation ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Wage and Hour
Under the Fair Labor Standards Act, employee compensation counted for purposes of fulfilling minimum wage and overtime obligations need not be paid all in cash. According to Section 203(m) of the FLSA, wages also include...more
Last year, the U.S. Department of Labor’s Wage and Hour Division announced its intent to again issue opinion letters in response to wage payment questions posed to the agency by employers and employees. Last month, DOL...more
Last month, the Ninth Circuit Court of Appeals became the fourth appellate circuit to reject the Department of Labor’s six-part test for determining whether internships at for-profit companies must be paid. The DOL test...more