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Fourth Circuit Says Employer-Sponsored Training Through Community College May Be Compensable Working Time

The Fair Labor Standards Act contains regulations explaining when time spent by new employees training for their jobs is compensable working time. In most circumstances, the employer must pay trainees for time spent learning...more

New NC LGBT Legislation Eliminates All State Law Employment Discrimination Lawsuits

On March 23 following a one-day special session, the North Carolina General Assembly passed, and Governor McCrory signed HB 2, a bill that will have widespread effects on legal protections for employees in North Carolina. The...more

Supreme Court Says Averages May be Used to Establish Classwide Liability

In its 2011 Dukes decision, the U.S. Supreme Court limited the circumstances under which groups of employees can maintain class action claims relating to their employment. In that case, the Court concluded that Wal-Mart...more

Sixth Circuit Says Residential Loan Underwriters Are Exempt From Overtime Requirements

Earlier this month, financial companies won a victory in the long-standing battle over whether employees involved in mortgage originations and approvals are exempt from the overtime requirements of the Fair Labor Standards...more

First Circuit Says Employees on Fluctuating Workweek Pay Plan May Receive Commissions or Incentive Bonuses

As litigation and administrative investigations of misclassification of employees for overtime purposes have grown, employers have increasingly turned to alternative methods of pay intended to reduce their overtime...more

WARN Act Does Not Prohibit Employers From Spacing Layoffs to Avoid Notice Requirements

The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide 60 days advance notice to employees of certain qualifying plant closings and mass layoffs. The WARN thresholds are based on...more

North Carolina Federal Court Says State Wage Payment Claims Cannot Be Waived Through Private Release

The Fourth Circuit Court of Appeals (which includes North Carolina and South Carolina) is among the minority of federal appellate circuits that restricts the ability of employers and employees to release claims for unpaid...more

Ninth Circuit Says DOL Tip Pooling Restrictions Apply Even if Employer Does Not Claim Tip Credit

Federal Department of Labor regulations have long prohibited employers from requiring that servers, hostesses and bartenders pool a portion of their tips to share with other restaurant employees such as bussers and cooks. For...more

Fourth Circuit Says Medical Case Managers Are Exempt Professionals

Over the past several years, the healthcare industry and Department of Labor have clashed over the application of the Professional exemption to the Fair Labor Standards Act’s minimum wage and overtime requirements to various...more

DOL Anticipates Late 2016 Issuance of Final Overtime Exemption Rules

Earlier this year, the federal Department of Labor proposed an increase in the minimum salary required to claim exempt status from the Fair Labor Standards Act’s overtime requirements under its Part 541 “white collar”...more

Fourth Circuit Says Mandatory Arbitration Agreement in Employee Handbook is Unenforceable

Employers seeking to avoid disputes in court with employees increasingly seek to use mandatory arbitration agreements. Typically, these agreements take the form of stand-alone written documents, signed by both parties....more

New Executive Order Mandates Sick Pay for Federal Contractors

On September 7, President Obama signed an Executive Order requiring federal contractors to provide employees with a minimum of seven days of paid sick leave per year. The sick pay will be awarded at the rate of one hour for...more

DOL Refuses to Extend Comment Period for Overtime Exemption Salary Changes

The 60-day notice and comment period for the Department of Labor’s proposed changes to its Part 541 white collar overtime exemption rules has expired. The agency reports receiving over 200,000 comments to the proposed rules,...more

Appeals Court Upholds DOL Changes to Home Care Worker Exemption

In a major defeat for the home health care industry, on August 21, the D.C. Circuit Court of Appeals reversed a lower court decision that had blocked issuance of an interpretation making thousands of currently exempt workers...more

Fourth Circuit Says Tip Pooling Rules Only Apply if Employer Claims Tip Credit

Restaurants and some other hospitality industry employers often take advantage of a sub-minimum wage applicable to employees who receive tips as part of their income. In recent years, a number of these employers have been the...more

Second Circuit Rejects DOL Test on Intern Pay

Over the past several years, employment lawyers have cautioned their clients with regard to legal risks involved with unpaid internships. As these internships rose in popularity, many of the arrangements failed to meet...more

DOL Proposed Overtime Rules Raise Possibility of Expansion of Computer Professional Exemption

Last week’s announcement by the Department of Labor of proposed changes to its Part 541 overtime exemption rules appropriately focused on the huge increase to the salary test required for exempt employees. Buried within the...more

DOL Releases Proposed White Collar Overtime Exemption Rule Changes

On Tuesday, the Department of Labor’s Wage and Hour Division released its highly anticipated proposed changes to the Part 541 overtime and minimum wage exemption regulations. These rules implement Section 13(a)(1) of the Fair...more

A Reminder to Employers That FLSA Claims Cannot Be Waived in Most Circumstances

When an employer signs a general release of claims with a former employee, it expects that the agreement and the consideration provided will prevent future legal claims. However, certain actions, such as Workers’ Compensation...more

Supreme Court Agrees to Review Another Donning/Doffing Case

The U.S. Supreme Court rejects the overwhelming majority of requests for review of lower court decisions. For some reason, the Court appears to have a soft spot for so-called “donning and doffing” cases. These cases involve...more

Will DOL's Overtime Rule Revisions Fix the Outside Salesperson Exemption?

The Department of Labor’s long-anticipated revisions to its Part 541 overtime exemption regulations await Office of Management and Budget review before issuance in proposed form. The new rules follow President Obama’s...more

Ninth Circuit Defers to DOL View that Automobile Service Advisors Have No Industry Overtime Exemption

When taking in your car to the dealership for repairs, you are usually greeted by a service advisor. Service advisors compile information needed for the mechanic to diagnose and repair the vehicle. They also provide cost...more

Supreme Court Says Agencies Can Change Rule Interpretation Without Notice and Comment

Companies subject to federal agency regulations sometimes face situations where measures taken to comply with such rules work one day, and then result in violations of those rules the next. Federal administrative agencies...more

Ban on Employee Salary Discussion Violates NLRA

Despite years of legal decisions to the contrary, a surprising number of employers still attempt to prohibit employees from discussing their compensation among themselves. The National Labor Relations Board has repeatedly...more

Equitable Defenses Do Not Apply to FLSA Overtime Claim

Defendants sometimes assert “equitable” defenses to legal claims brought against them. In some situations, courts have the discretion to bar claims by plaintiffs whose “unclean hands” or other actions make recovery manifestly...more

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