Fair Labor Standards Act

On April 23, the U.S. Department of Labor (“DOL”) published a set of final regulations dramatically increasing the salary level most executive, professional, and administrative employees must be paid to retain their overtime exempt status under the Fair Labor Standards Act. In most respects, and after considering 33,000 comments, the final regulations are similar to those proposed last September. The DOL has “dug-in” on many of the proposed regulations’ controversial terms. The changes are to the salary level test, only. The DOL did not modify the other two tests most workers must satisfy to be deemed exempt, i.e., the salary basis test and the duties test.Continue Reading New Overtime Exemption Rules Announced: What Employers Need to Know and Do

On July 29, the Department of Labor (DOL) announced a final rule rescinding the Trump Administration’s Joint Employer rule. This move clearly reestablishes the DOL’s quest to broaden the scope of potential liability for businesses under the Fair Labor Standards Act (FLSA) for the wrongs of their subcontractors, franchisees and other entities. This move is consistent with the Biden Administration’s trend to reinstate the measures taken under the FLSA by the Obama Administration, including those taken to broaden the scope of who could be deemed joint employers under the FLSA. The rule promulgated by the Trump Administration had replaced an Administrator’s Guidance issued by the Wage and Hour Administrator of the Obama Administration, David Weil. Consistent with this trend, David Weil has been nominated to serve the current administration in the same role he held during the Obama Administration.
Continue Reading DOL Rescinds Trump-Era Joint Employer Rule: Employers Beware!

The Problem

The Biden DOL is primed to aggressively pursue errors made with respect to the payment of overtime compensation as required by the Fair Labor Standards Act (FLSA). While doing so, it’s also primed to assert claims for liquidated damages whenever it finds errors, even for errors that were inadvertent, and even for those that may seem nominal. These liquidated damages are equal to the amount of unpaid overtime its investigators deem due.Continue Reading Lessening Liability for Unpaid Overtime Pay Claims: The Best Defense is a Good Offense

Though most employers are focused on COVID-19 issues, employers and the government are still multitasking and addressing other issues. The Wage and Hour Division (WHD) of the U.S. Department of Labor is no exception.

Consequently, on March 26, 2020, the WHD issued three opinion letters offering interpretations of the Department’s final rule on the Fair Labor Standard’s Act (FLSA) regular rate requirements. All three involved different types of income and whether or not they must be included in the regular rate of pay for the purpose of calculating overtime pay.
Continue Reading New Wage and Hour Division Opinion Letters Provide Clarity on the FLSA “Regular Rate of Pay” Requirements