With the advent of Uber, Lyft, and other so-called “gig economy” jobs, a niche industry has arisen for plaintiffs’ lawyers who file suit against these companies alleging that their workers are misclassified employees. The...more
As we have reported over the past several months, a federal district court that reinstated the Equal Employment Opportunity Commission’s pay data collection requirements has been considering the deadline for submittal of such...more
Like most states, North Carolina requires employers to obtain advance written authorization from employees before making deductions from pay that are not otherwise required by law (i.e., taxes). When the exact amount of the...more
As we have reported in recent EmployNews issues, a federal district court enjoined the Office of Management and Budget’s (OMB) attempt to reverse Obama-era regulations that modified the employer EEO-1 disclosure process to...more
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
Employees who believe they have been paid less based on their gender have two federal legal remedies. They can pursue claims under Title VII and under the Equal Pay Act (EPA). While the two laws have somewhat different legal...more
On March 4, a federal district court held that the Office of Management and Budget did not have the authority to stay implementation of Obama-era regulations that changed the annual EEO-1 employer disclosures to include...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
On December 28, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration granted multiple petitions seeking a declaration that new California rules for drivers’ rest periods and meal breaks are...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
Many employers rely on the fluctuating workweek (FWW) method to reduce their overtime obligations. FWW allows employers to pay a fixed salary and a half-time overtime premium to employees whose working hours significantly...more
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
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
Over the past several years, a number of states have passed or considered legislation that prohibits employers from using an applicant’s prior salary history when setting incoming pay rates. The legislation is based on a...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