News & Analysis as of

Internal Revenue Service Fair Labor Standards Act (FLSA)

The United States Internal Revenue Service is a bureau of the United States Department of the Treasury. The IRS is charged with collecting revenue and enforcing the Internal Revenue Code.  
Ogletree, Deakins, Nash, Smoak & Stewart,...

It’s Official - No Tax on Tips, No Tax on Overtime Through 2028

One of President Donald Trump’s 2024 campaign messages was a promise to implement a no-tax-on-tips and no-tax-on-overtime law. On July 3, 2025, the U.S. Congress passed the “One Big Beautiful Bill,” and President Trump signed...more

Conn Maciel Carey LLP

The One Big Beautiful Bill’s Overtime and Tax Provisions – Employer Consequences

Conn Maciel Carey LLP on

As we await the House of Representatives’ vote on the One Big Beautiful Bill, let’s highlight two key provisions that may soon impact employers and employees alike. The Senate bill under consideration before the House of...more

Offit Kurman

Navigating Contractor vs. Employee Classification

Offit Kurman on

In this episode of OK at Work, Sarah Sawyer and Russell Berger from Offit Kurman delve into the intricate and often confusing topic of independent contractor classification. They discuss the various tests and criteria used at...more

Seyfarth Shaw LLP

Taking a Slice Out of Parker: District Court Rejects Sixth Circuit’s Reimbursement Standard for Pizza Delivery Drivers

Seyfarth Shaw LLP on

In March 2024, the Sixth Circuit in Parker v. Battle Creek Pizza, Inc. announced a new standard for assessing vehicle reimbursements under the FLSA. The Sixth Circuit rejected both employees’ requests for the use of the IRS...more

Miller & Martin PLLC

The 6th Circuit Splits the Pie in Parker v. Battle Creek Pizza FLSA Litigation

Miller & Martin PLLC on

Classic Domino’s ads warned to “Avoid the Noid.” Recently, the plaintiff’s bar has been the Noid for pizzerias and similar restaurants. These employers typically pay delivery drivers minimum wage, minus a tip credit, and...more

Marshall Dennehey

Sixth Circuit Discredits IRS Mileage Rate as Sufficient Payment to Employee Drivers Under the FLSA

Marshall Dennehey on

Parker v. Battle Creek Pizza, Inc. & Bradford v. Team Pizza, Inc., Nos. 22-2119/3561 (6th Cir. Mar. 12, 2024) (not yet reported) - The Sixth Circuit recently considered a consolidated appeal regarding how delivery drivers...more

Ervin Cohen & Jessup LLP

Department of Labor Revises Independent Contractor Test

On March 11, 2024, the U.S. Department of Labor’s (“DOL”) revised independent contractor test took effect, under a Final Rule issued by the Wage and House Division of DOL. The rule for Employee or Independent Contractor...more

Fisher Phillips

Fresh From The Oven: Appeals Court Tosses Out Rulings on Pizza-Delivery Driver Mileage Rates, Serves Several Wins for Employers

Fisher Phillips on

An appeals court just ruled that pizza companies do not need to use the Internal Revenue Service’s standard mileage rate when reimbursing their delivery drivers for the actual costs of using their vehicles for work. In...more

Cozen O'Connor

Do Recent Changes and Legal Challenges to the Independent Contractor Test Affect OSHA?

Cozen O'Connor on

Businesses have struggled with the determination of who is an independent contractor vs employee for many decades. One of the challenges rests with the fact that the applicable legal test may be different depending on the...more

ArentFox Schiff

10 Legal Issues for Nonprofit and Association Leadership in 2024

ArentFox Schiff on

As 2024 gets underway, the nonprofit sector will continue to face new challenges in addition to grappling with ongoing challenges that continue to impact the sector. Our interdisciplinary team, serving thousands of nonprofits...more

Keating Muething & Klekamp PLL

Department of Labor Announces New Independent Contractor Rule to Go into Effect March 11, 2024

On January 9, 2024, the Department of Labor announced that the changes to its independent contractor rule under the Fair Labor Standards Act (FLSA) which were proposed last year will go into effect starting March 11, 2024....more

Pillsbury Winthrop Shaw Pittman LLP

Don’t Let Bank Uncertainty Delay Payroll: Considerations for Employers

With bank uncertainty making headlines, we answer employers’ most frequently asked questions about the consequences of payroll delays, strategies for mitigating risk and more. ...more

Kohrman Jackson & Krantz LLP

Common Mistakes New Business Owners Make & How to Fix Them

Starting a new business? The U.S. Bureau of Labor Statistics indicates that 20% of new businesses fail in the first two years, 45% in the first five years. As daunting as those figures may seem, there are measures you can...more

Rumberger | Kirk

Out with the New: Rescission of DOL 2021 Rule Could Make Independent Contractors Full-Time Employees

Rumberger | Kirk on

A newly proposed federal regulation could flip the script for employers across the country that utilize independent contractors in day-to-day business. A proposed rule by the Department of Labor Wage and Hour Division was...more

Warner Norcross + Judd

What’s Old Is New Again: DOL Proposes a Sort-of-New Employee v. Independent Contractor Rule

Warner Norcross + Judd on

Here we go again! It seems like lately, every time a new presidential administration is elected, we get new rules that overturn existing rules that often go back to other, even older rules....more

Jackson Lewis P.C.

Dealing With Undocumented Workers In ERISA Plans

Jackson Lewis P.C. on

Whether because of the tight U.S. labor market or flawed onboarding processes, many undocumented workers are becoming participants and accruing benefits in ERISA-governed employee benefit plans. Dealing with such plan...more

Morrison & Foerster LLP

Paying Employees in Cryptocurrency: Is That Lawful?

In recent years, more consumers, merchants, and financial institutions have accepted cryptocurrency as a form of payment for everyday products and services. Last November, mayors of two major U.S. cities signaled what may be...more

Freeman Law

The IRS’ Lawsuits, Awards, and Settlements Audit Techniques Guide

Freeman Law on

Some time ago, the IRS issued an Audit Techniques Guide on the taxation of lawsuits, awards, and settlements. As many tax practitioners can attest, there are a multitude of tax issues involving any one of these issues. In...more

Sheppard Mullin Richter & Hampton LLP

U.S. Department of Labor Announces Withdrawal of Trump-Era Independent Contractor Rule

On May 5, 2021, the U.S. Department of Labor (“DOL”) announced it is officially withdrawing, effective May 6, 2021, the rule promulgated under the Trump administration addressing the standard to determine whether an...more

Pillsbury Winthrop Shaw Pittman LLP

Year-End Stimulus Bill Permits, but Does Not Mandate, Extension of FFCRA Leave

Late on December 27, 2020, President Trump signed into law an omnibus stimulus bill. The new legislation contained much needed extensions of unemployment benefits that have supported many Americans who have experienced...more

Shook, Hardy & Bacon L.L.P.

National Employment Perspective | Delivery Driver Reimbursement

Department of Labor Confirms that Delivery Drivers Need Not Be Paid Actual Expenses or the IRS Rate for Use of Their Own Vehicles - Over the past several years, employers have faced significant litigation over how they...more

Ballard Spahr LLP

DOL Publishes Proposed ‘Independent Contractor’ Rule

Ballard Spahr LLP on

The U.S. Department of Labor (DOL) yesterday issued a proposed rule addressing when a worker will be an independent contractor (rather than an employee) under the Fair Labor Standards Act (FLSA). Under the proposal, the...more

Vinson & Elkins LLP

Reimbursing Business Expenses For A Remote Workforce

Vinson & Elkins LLP on

Most employers reimburse their employees for money spent on meals, hotels and other expenses during work trips as business expenses, but few have given thought to reimbursing employees for employee costs incurred at home,...more

Fisher Phillips

Fisher Phillips Victory Serves As First Blow In One-Two Punch Against Strict Reading Of Vehicle Reimbursement Law

Fisher Phillips on

In a win secured by members of Fisher Phillips Wage and Hour Law Practice Group, a Colorado federal court just held that employers may “reasonably approximate” vehicle-related expenses for reimbursement purposes under federal...more

Seyfarth Shaw LLP

Reasonable, Not Required: DOL Says IRS Mileage Rate Is Not Only Expense Reimbursement Method

Seyfarth Shaw LLP on

Seyfarth Synopsis: The U.S. DOL has confirmed that there is no per se violation of the FLSA’s minimum wage requirement when low-wage employees are reimbursed for their use of a personal vehicle at a reasonable rate that is...more

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