Archives
Proposed New Overtime Rule Headed to Executive Branch for Review
Our friends at Bloomberg Law are reporting that the U.S. Department of Labor (DOL) has sent a proposed new federal overtime rule to the White House Office of Information and Regulatory Affairs (OIRA). OIRA is part of the Office of Management and Budget (OMB), which has the responsibility to coordinate interagency Executive Branch review of … Continue Reading
[Podcast]: Recent Developments in Federal Overtime Rules
Federal Regulatory Agenda Previews Anticipated FLSA Rule Changes
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
New Federal Tip Rules Expected in October 2018
Since 1966, Section 3(m) of the Fair Labor Standards Act permits an employer to take a tip credit toward its minimum wage obligation for tipped employees equal to the difference between the required cash wage (currently $2.13) and the federal minimum wage (currently $7.25). Employers using the tip credit must be able to show that … Continue Reading
Trump’s Fall Regulatory Agenda Pegs March 2019 For Proposed New Overtime Rule
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
New Federal Overtime Rule Expected in March 2019
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
Proskauer Delivers #MeToo Webinar With EEOC Commissioner Feldblum
On September 5th, Proskauer partner Steve Pearlman had the honor of delivering a webinar with EEOC Commissioner Chai Feldblum, which Proskauer senior associate Danielle Moss moderated. Commissioner Feldblum is the co-author of the EEOC’s report on rebooting harassment prevention. The webinar focused on how the #MeToo movement has impacted workplace dynamics and discussed innovative solutions … Continue Reading
Second Circuit, Relying on SCOTUS Instruction, Rejects “Narrow Construction” Principle for FLSA Exemptions
In two decisions issued on September 19, the Second Circuit relied on the Supreme Court’s instruction in Encino Motorcars, LLC v. Navarro, 138 S. Ct. 1134, 1140 (April 2, 2018) that FLSA exemptions are not to be construed narrowly, but fairly. In Munoz-Gonzalez v. D.C. Limousine Service, Inc., analyzing the taxicab exemption in Section 13(b)(17) of … Continue Reading
Wage and Hour Considerations During Weather-Related Emergencies
Business disruptions stemming from natural disasters – whether a hurricane, snowstorm, wildfire or other emergency – raise important questions for employers. We want to take this opportunity to share insight on the frequently asked questions that our clients face in the wake of natural disasters. The following scenarios shed light on employer rights and responsibilities … Continue Reading
DOL Issues Four New FLSA Opinion Letters
Summer’s not over yet! On August 28, 2018, the U.S. Department of Labor issued four new letters in response to requests for opinions under the Fair Labor Standards Act. In this most recent slate of letters, the DOL offers guidance on compensable time, the retail sales exemption, volunteers, and the motion picture theater exemption. Compensable … Continue Reading
Supreme Court Rules in Favor of Employers in Upholding Arbitration Agreements Containing Class Action Waivers
SCOTUS: Employers Can Compel Individual Arbitration of Wage and Hour Claims
In its eagerly-awaited opinion in Epic Systems Corp. v. Lewis, the U.S. Supreme Court held on May 21 that class action waivers in arbitration agreements between employers and employees do not violate the National Labor Relations Act. The opinion resolves a split among federal circuits, and reiterates—once again—the strong federal policy favoring arbitration. While … Continue Reading
California Changes Rules on Independent Contractors
As reported by my colleagues in Proskauer’s California Employment Law Update, the Supreme Court of California established new rules on April 30, 2018 for determining whether a worker is an independent contractor or an employee for purposes of California’s Industrial Welfare Commission (IWC) Wage Orders. The Wage Orders set forth California’s requirements for minimum wage, … Continue Reading
DOJ Announces First Settlement Under Trump Administration Regarding “No-Poach” Agreement
On April 3, 2018, the Antitrust Division of the U.S Department of Justice (“DOJ”) announced that it had reached a settlement in a matter involving a “no-poaching” agreement between employers—the first such enforcement action under the Trump Administration. The DOJ’s pursuit of the matter reflects the Department’s continuing scrutiny of employment and hiring agreements between … Continue Reading
DOL Clarifies Pay Rules for FMLA-Related Breaks
In an opinion letter issued on April 12, 2018, the U.S. Department of Labor concluded that 15-minute breaks throughout the day required by an employee’s serious health condition are not compensable—notwithstanding the general rule that breaks of 20 minutes or less are to be paid. The agency explained the exception as follows: [R]est breaks up … Continue Reading
DOL Clears Up Travel Time Issue For Employees With No “Normal Working Hours”
The rules on what kinds of travel time are (and are not) compensable for non-exempt employees are complex. As opposed to exempt employees—who generally receive a salary intended to compensate them for all working time, including time spent in business-related travel—non-exempt employees are often only paid for the particular hours that the law deems compensable. … Continue Reading
States’ Attorneys General Throw Shade on USDOL’s “PAID” Program
Last month, we discussed some serious concerns about the efficacy of the U.S. Department of Labor’s “PAID” program, under which employers can self-report wage and hour violations to the federal agency and negotiate a seeming resolution of potential claims. Chief among our concerns was that the resolution would not extend to state law claims, leaving … Continue Reading
SCOTUS Soundly Rejects Notion That FLSA Exemptions Are To Be “Narrowly Construed”
In an April 2, 2018 decision of otherwise narrow appeal to most employers (whether the exemption in Section 13(b) (10)(A) of the Fair Labor Standards Act for an automobile “salesman, partsman, or mechanic” applies to “service advisors”), the Supreme Court flatly debunked the well-worn notion that FLSA exemptions are to be construed narrowly. To be fair, … Continue Reading
DOL’s “New” PAID Self-Reporting Program of Questionable Value to Employers
Earlier this week, the U.S. Department of Labor’s Wage and Hour Division announced the upcoming launch of a “new” pilot program called the Payroll Audit Independent Determination program (“PAID”). Under PAID, employers can come forward voluntarily to disclose wage and hour violations to the DOL, the DOL will supervise a settlement of any monetary claims … Continue Reading
2017 Form EEO-1 Survey Now Available
Yesterday, the 2017 EEO-1 Survey became available. Private employers with 100 or more employees and federal government contractors or subcontractors with 50 or more employees and a contract/subcontract of $50,000 or more must file EEO-1 reports. As you may recall, last year the U.S. Equal Employment Opportunity Commission (“EEOC”) attempted to revise the Form EEO-1 … Continue Reading
DOL Revives Slate of FLSA Opinion Letters From 2009
Continuing the pro-business activities many expected from the agency, the U.S. Department of Labor has revived 17 Fair Labor Standards Act opinion letters that were published in the waning days of the Bush Administration in January 2009 but promptly withdrawn by the Obama DOL in March of that year. The opinion letters were reissued verbatim … Continue Reading
DOL Adopts “Primary Beneficiary” Test For Internship Programs
The U.S. Department of Labor announced in a January 5, 2018 press release that it was scrapping the six-factor test it had used for years to determine whether interns are employees for purposes of the Fair Labor Standards Act and adopting the “primary beneficiary” test favored by a number of U.S. Courts of Appeals. Under the … Continue Reading
Ninth Circuit Joins Others in Endorsing Hourly Pay Averaging Under FLSA
On November 15, 2017, in a case of first impression in the Ninth Circuit, the Court of Appeals adopted the longstanding position of sister circuits and the U.S. Department of Labor that for purposes of determining whether an employee has received the minimum wage under federal law, the employer can divide total weekly earnings by … Continue Reading
