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Dykema Labor & Employment Law Blog

Dykema Labor & Employment Law Blog

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New FLSA Regulations Dealt a Knock-Out Blow

As we reported in November 2016, a federal court issued a preliminary injunction halting the implementation of the proposed changes to the FLSA’s overtime exemptions just before they were to take effect on December 1. On August 31, 2017, the same court issued another decision definitively holding that the Department of Labor exceeded its authority in issuing those regulations and thereby permanently enjoining them. In doing so, the court clarified its prior holding and gave the new Administration a clear license to go back to the drawing board and draft new regulations consistent with the underlying law. Read More ›

Good News for Employers: Additional EEOC Reporting Requirement on Pay Information Has Been Put on Hold Indefinitely

The Office of Management and Budget (“OMB”) announced on August 29, 2017, that the pending deadline for covered employers to submit pay data to the Equal Employment Opportunity Commission (“EEOC”) has been suspended indefinitely. Employers had been facing a deadline of March 31, 2018, to submit this additional pay information. In its memo to the EEOC, OMB stated that it would be “initiating a review and immediate stay of the effectiveness of [the pay data collection] aspects of the EEO-1 form.” Read More ›

Chicago City Council and Cook County Pass Mandatory Paid Sick Leave Ordinances. How Employers Should Prepare to Comply by July 1, 2017

On July 1, 2017, the City of Chicago and Cook County’s Paid Sick Leave Ordinance takes effect. We previously blogged about this topic here.  

To recap, the new Ordinances would require most Cook County and Chicago employers to provide the following sick leave benefits: Read More ›

Is “Comp-Time” in the Private Sector Just Over the Horizon?

Earlier this week, the U.S. House of Representatives passed, by a 229-197 margin, the Working Families Flexibility Act (HR 1180). The Act, if passed by the Senate and signed by the President, will introduce the concept of “compensatory time” (a/k/a “comp-time”) to the private sector workplace. Under the Fair Labor Standards Act, comp-time has existed in the public sector for many decades, but absent the passage of this Act, it is not permissible in the private sector. Read More ›

New FLSA Regulations Enjoined!

We have posted several blog entries regarding the FLSA regulations announced in May that drastically increased the minimum salary threshold for most executive, administrative and professional employees from $455 per week (or $23,660 per year) to $913 per week (or $47,476 per year). Late Tuesday afternoon, the United States District Court for the Eastern District of Texas granted a motion brought on behalf of 21 states and supported by business groups led by the United States Chamber of Commerce to preliminarily enjoin the new overtime exemption regulations set to go into effect on December 1, 2016.  

The Elements for Preliminary Relief Were Satisfied by the States

At the outset, the court had to determine if the states will “likely succeed on the merits” as the case is further litigated, and if a permanent injunction is on the horizon. The states’ case was premised on both constitutional and statutory grounds. The court concluded that while the states’ constitutional claims were unlikely to succeed, their statutory arguments appeared strong and likely to succeed.  Read More ›

One Down, One to Go: Courts Weigh In on Enjoining DOL Persuader and FLSA Exemption Rules

Over the course of the last year, the U.S. Department of Labor promulgated two controversial regulations triggering court challenges. One rule–known as the “Persuader Rule”–was set to require employer consultants and lawyers to file disclosure reports of any union avoidance activities they engage in, even if that activity was purely advisory in nature and did not involve direct contact with employees. The other rule regards the changes to the overtime exemption regulations, which are set to increase the salary threshold for exempt status from $455 per week to $913 per week, and then to automatically adjust that threshold every three years. Read More ›

Follow Up: EEOC Releases Revised EEO-1 Form Which Now Tracks Employee Pay Data

Earlier this year, this blog discussed the EEOC’s proposed rule that would require employers to report additional pay data as part of their annual “Employer Information Report EEO-1” (EEO-1) form submissions. The EEOC and Office of Federal Contract Compliance Programs (OFCCP) use the EEO-1 form to collect data from private employers, federal contractors and subcontractors about their employees. It is an established report that all employers with 100 or more employees are required to submit to the EEOC on an annual basis. On September 29, 2016, the EEOC announced the approval of a revised EEO-1 form. Beginning with the 2017 report (which must be filed in March 2018), the EEOC will collect additional summary pay data that it had not previously collected from employers with 100 or more employees. Read More ›

An Employer’s Pocket Survival Guide to the New Overtime Regulations

The overtime regulations are almost here and will affect more than 4 million employees across the country. Although a pending lawsuit seeks to halt the regulations, employers should prepare for the probability that they will soon be faced with new rules for paying white collar employees. The most significant change made by the overtime regulations will raise the minimum salary level for the white collar—executive, administrative and professional—exemptions under the Fair Labor Standards Act (“FLSA”) from $455 per week to $913 per week. After December 1, 2016, any employee earning below that threshold will no longer fall under the white collar exemptions from overtime pay. Read More ›

States Hopping on the Department of Labor’s Misclassification Bandwagon

On August 31, 2016, North Carolina became the latest state to join the U.S. Department of Labor’s (“DOL”) expansive efforts to reduce the misclassification of employees as independent contractors—making it the 33rd state participating in the DOL’s collaborative effort to reduce what it views as rampant misclassification.  Through its administrator’s interpretation, the DOL has issued guidance in its renewed efforts to combat misclassification. The DOL's initiative is a concerted effort to investigate and pursue companies that misclassify employees as contractors to avoid various tax and/or benefit burdens. The initiatives have resulted in a significant number of companies being investigated by the DOL and the payment of significant back pay amounts to employees. Several states have formally adopted the DOL’s heightened scrutiny in this area and have agreed to work closely with the feds to reduce misclassification, thereby raising the stakes for employers who utilize these arrangements. Read More ›

NLRB Continues to Make Non-Union Employers Nervous

Last month, the National Labor Relations Board issued two more significant decisions reminding employers – unionized and non-unionized alike – that they may indirectly be subject to the National Labor Relations Act in ways previously unrealized. They did so by making it more difficult for employers using contracted staff or buying the assets of unionized employers to avoid either an obligation to bargain with unions representing the staffing company or predecessor’s employees, or even being locked into the terms unions may have had with those employers upon buying the assets of another employer. Read More ›