On January 29, the U.S. Department of Labor announced that it was discontinuing the Payroll Audit Independent Determination (“PAID”) program, effective immediately. Under the program, which began in 2018, employers could self-report wage and hour violations to the DOL with the promise that the agency would supervise a settlement of the violations without seeking liquidated … Continue Reading
The U.S. Department of Labor’s Wage and Hour Division (WHD) issued two new opinion letters on January 8, 2021, bringing the number of “lame duck” wage and hour opinion letters—issued since Election Day 2020—to six. In FLSA2021-1, WHD determined that account managers at a life sciences manufacturer qualify for the FLSA’s administrative exemption. The account … Continue Reading
On December 31, 2020, the U.S. Department of Labor’s Wage and Hour Division (WHD) issued two opinion letters—one on 凯发国际版home-to-office travel time and one on live-in caregivers. Such “lame duck” opinion letters—issued post-Election Day when there is a change in both administration and political party—were at one point in recent memory quite uncommon. The Carter … Continue Reading
On November 3, 2020, the U.S. Department of Labor’s Wage and Hour Division (“WHD”) issued new opinion letters addressing the compensability of time spent by employees attending voluntary training programs and in work-related travel. The rules at issue only apply to non-exempt (e.g., overtime-eligible) employees. If the time is considered “hours worked” under the FLSA, … Continue Reading
On September 2, 2020, the Court of Appeals for the Fifth Circuit held that employees bear the burden of proof on whether bonuses should have been included in the regular rate of pay for purposes of calculating overtime compensation under the Fair Labor Standards Act (“FLSA”). The plaintiffs in Edwards v. 4JLJ, L.L.C. alleged that … Continue Reading
In an opinion letter issued on August 31, 2020, the U.S. Department of Labor restated its position that an employee’s hours need not fluctuate above and below 40 hours to qualify for the fluctuating workweek (“FWW”) method of calculating overtime pay in 29 C.F.R. § 778.114. Under the FWW method of pay, an overtime-eligible employee … Continue Reading
On August 24, 2020, the U.S. Department of Labor’s Wage and Hour Division (“WHD”) issued a Field Assistance Bulletin (“FAB”) providing guidance on employers’ obligations under the Fair Labor Standards Act (“FLSA”) to track and pay for the hours of compensable work performed by employees who are working remotely. While timely in light of the … Continue Reading
Effective July 1, 2020, the U.S. Department of Labor (DOL) will pull back on seeking liquidated damages in pre-litigation settlements of wage claims and investigations. The change in policy, announced in Field Assistance Bulletin 2020-2, is significant, as liquidated damages can equal 100% of the back pay deemed to be owing, potentially resulting in “double … Continue Reading
For almost 80 years, it has been the law that an overtime-eligible employee whose hours fluctuate from week to week and who agrees to receive a fixed weekly salary covering all hours of work is entitled to a halftime premium for hours worked in excess of 40 per week—not a “time and a half” premium. … Continue Reading
On November 20, 2019, the Pennsylvania Supreme Court ruled that the fluctuating workweek (“FWW”) method of calculating overtime pay owed to salaried workers is prohibited by state law. Chevalier v. General Nutrition Centers Inc., Pennsylvania Supreme Court, No. 22-WAP-2018. Under the FWW method of pay, an overtime-eligible employee receives a fixed salary for all hours … Continue Reading
On January 1, 2020, the new federal overtime rule takes effect. Other than in states with already-higher minimum salaries for exemption (which include California and, for certain types of employees, New York), employers will be required to pay most executive, administrative, and professional employees at least $684 per week ($35,568 per year). Are you ready for … Continue Reading
The U.S. Department of Labor issued its final rule amending the overtime regulations today, without any significant changes from the proposed rule the agency issued in March 2019. Here’s the bottom line: The salary minimum for exemption as an executive, administrative, or professional employee will jump from $455 per week ($23,660 per year) to $684 … Continue Reading
Members of the House and Senate introduced companion bills on June 11, 2019 to amend the Fair Labor Standards Act to raise the minimum salary threshold for exempt executive, administrative, and professional (“EAP”) employees to north of $50,000 and to automatically update the threshold every three years. The “Restoring Overtime Pay Act of 2019” (H.R. … Continue Reading
On May 8, 2019, Massachusetts’ highest court held that retail salespersons who are paid entirely on a commission or draw basis, may nevertheless be entitled to additional overtime or pay for work on Sundays. The Supreme Judicial Court considered these questions in Sullivan v. Sleepy’s LLC, SJC-12542. The narrow questions the Court considered were whether … Continue Reading
In an opinion letter issued April 29, 2019, the U.S. Department of Labor’s Wage and Hour Division concluded that a “virtual marketplace company” (“VMC”) that connects service providers with consumers is not the employer of the service providers. The opinion should be a welcome one not only for VMCs and businesses in the “gig economy,” … Continue Reading
The U.S. Department of Labor’s proposed new overtime rule was published in the Federal Register today. As described in our earlier post, the proposed new rule would: Raise the salary minimum for exemption as an executive, administrative, or professional employee to $679 per week ($35,308 per year). Allow employers to satisfy up to 10% of the … Continue Reading
It’s here. The U.S. Department of Labor’s Wage and Hour Division unveiled its proposed new overtime rule today. We skipped the 200-plus pages of preamble and jumped right to the proposed regulatory amendments themselves (we’ll digest the prefatory materials in another post). Here’s the deal: The salary minimum for exemption as an executive, administrative, or … Continue Reading
In yet another legal development calling into question a traditional independent contractor relationship in the U.S., the Court of Appeals for the Sixth Circuit determined that off-duty police officers were employees of a private security company for purposes of the Fair Labor Standards Act. In Acosta v. Off Duty Police Services, Inc. (6th Cir. Feb. … Continue Reading
As discussed in our earlier post, New York State’s annual increases for overtime exemption and minimum wage go into effect on December 31, 2018. Employers whose exempt “administrative” and “executive” employees are currently paid less than the new salary minimums must either increase those salaries to the new levels or start paying the affected employees … Continue Reading
In this episode of The Proskauer Brief, senior counsel Harris Mufson and partner Allan Bloom discuss recent developments in federal overtime rules. The Trump administration recently released its fall 2018 regulatory agenda, with lots of information relating to the Department of Labor (DOL). The DOL appears to be committed to a more business-friendly regulatory framework … Continue Reading
The Trump Administration unveiled its Fall 2018 Unified Agenda of Regulatory and Deregulatory Actions (the “Regulatory Agenda”) earlier this week. That’s the biannual report from the federal administrative agencies on the regulatory actions they plan to take in the near and long term. Lots of juicy information in the Regulatory Agenda, but we’ll focus on … Continue Reading
In its Fall 2018 Unified Agenda of Regulatory and Deregulatory Actions, published today, the Trump Administration formally announced its intention to issue a Notice of Proposed Rulemaking (NPRM) in March 2019 “to determine the appropriate salary level for exemption of executive, administrative and professional employees.” See our earlier post for what to expect in the proposed new rule.… Continue Reading
It’s that time of year again! New York State’s annual threshold increases for overtime exemption and minimum wage go into effect on December 31, 2018. On that date: The minimum salary for exemption as an “administrative” or “executive” employee increases from $975 per week ($50,700 annually) to $1,125 per week ($58,500 annually) for New York City … Continue Reading
It doesn’t seem that long ago that employers were busily preparing for the new overtime rule that would have doubled the minimum salary level for the “white collar” exemptions from $23,660 to nearly $48,000. That new rule—finalized in May 2016 and set to take effect on December 1 of that year—was struck down by a … Continue Reading
The U.S. Department of Labor’s Wage and Hour Division (WHD) issued two new opinion letters on January 8, 2021, bringing the number of “lame duck” wage and hour opinion letters—issued since Election Day 2020—to six. In FLSA2021-1, WHD determined that account managers at a life sciences manufacturer qualify for the FLSA’s administrative exemption. The account … Continue Reading
On September 2, 2020, the Court of Appeals for the Fifth Circuit held that employees bear the burden of proof on whether bonuses should have been included in the regular rate of pay for purposes of calculating overtime compensation under the Fair Labor Standards Act (“FLSA”). The plaintiffs in Edwards v. 4JLJ, L.L.C. alleged that … Continue Reading
On January 1, 2020, the new federal overtime rule takes effect. Other than in states with already-higher minimum salaries for exemption (which include California and, for certain types of employees, New York), employers will be required to pay most executive, administrative, and professional employees at least $684 per week ($35,568 per year). Are you ready for … Continue Reading
