Law and the Workplace

Tag Archives: FLSA

Fifth Circuit Dismisses Appeal of Nationwide Injunction of Obama-Era Overtime Rule

In light of the Texas district court’s recent judgment invalidating the 2016 overtime rule, the DOL filed an unopposed motion to withdraw its appeal of the November 2016 order that preliminarily enjoined the rule on a nationwide basis.  The Fifth Circuit Court of Appeals granted the motion and dismissed the appeal on September 6.  Unless … Continue Reading

Texas Court Invalidates 2016 Federal Overtime Rule; DOL Seeks to Withdraw Appeal of Injunction

On August 31, 2017, the Texas federal district court that had issued a preliminary injunction in November 2016 blocking implementation of the Obama Administration’s revised overtime rule granted the plaintiffs’ motion for summary judgment, declaring the rule invalid and ending the case at the district court.  The DOL had appealed the injunction with the Fifth Circuit Court … Continue Reading

Wage and Hour Considerations During Weather-Related Emergencies

As Tropical Storm Harvey continues wreak havoc across Texas and beyond, it’s the right time to revisit employer rights and responsibilities during a weather-related emergency or other major disruption.  Here are some typical scenarios that employers face during weather-related or other emergencies, and the consequences under the wage and hour laws. “Our office was closed … Continue Reading

[Podcast] The Proskauer Brief: Congressional Legislation Update

Which federal bills will become law? Proskauer partner Allan Bloom and associate Rachel Philion run through some of the key proposed congressional legislation in the pipeline that we are keeping our eyes on, and provide insight into the potential implications for employers if they pass. We also provide an update on developments from the U.S. Department of … Continue Reading

DOL Withdraws Obama-Era Administrator’s Interpretations on Independent Contractors and Joint Employment

Employers across the U.S. were troubled by the sub-regulatory guidance issued by the DOL in 2015 and 2016 on independent contractors and joint employment.  Today, the DOL announced the withdrawal of that guidance (Administrator’s Interpretations No. 2015-01 (July 15, 2015, on independent contractors) and No. 2016-01 (Jan. 20, 2016, on joint employment)). As you may … Continue Reading

SCOTUS Denies Cert in Regular Rate Case; Ninth Circuit Decision Requiring Overtime on “Cash-in-Lieu” of Benefits Stands

Even the Supreme Court doesn’t want to talk about the regular rate of pay. The City of San Gabriel, California, provides a flexible benefits plan to its employees under which they receive a designated monetary amount to be used to purchase medical, vision, and dental benefits. Employees can decline to purchase medical benefits (say, because … Continue Reading

Trump DOL Presses Pause Button on Appeal of Overtime Rule Injunction

Remember the new federal overtime rule that was going to double the minimum salary for the “white collar” exemptions?  In November, a Texas district court issued a nationwide injunction preventing the rule from taking effect.  The DOL successfully petitioned the Fifth Circuit for an expedited appeal of the injunction in December, and briefing was to … Continue Reading

Texas Judge Denies DOL’s Motion to Stay District Court Overtime Litigation Pending Appeal

Earlier today Judge Amos Mazzant of the Eastern District of Texas denied the motion of the U.S. Department of Labor to stay further district court proceedings in the overtime litigation.  The DOL had asked the district court—which has already issued a preliminary injunction blocking the DOL’s new overtime rule from taking effect—to refrain from taking … Continue Reading

Fifth Circuit Joins Sister Circuits in Holding That Employees May Recover Emotional Distress Damages in FLSA Retaliation Suits

On December 19, 2016, the Fifth Circuit joined the Sixth and Seventh Circuits in holding that “employees” under the FLSA may recover emotional distress damages in FLSA retaliation actions, finding that the district court erred by refusing to instruct the jury on the availability of emotional distress damages for an employee’s retaliation claim. In so … Continue Reading

Winter Is Coming—Wage and Hour Considerations During Weather-Related Emergencies

With winter storms around the corner, it’s the right time to revisit employer rights and responsibilities during a weather-related emergency or other major disruption.  We discuss below some typical scenarios that you are likely to face during weather-related or other emergencies, and the consequences under the wage and hour laws. “Our office was closed for … Continue Reading

Recovery of Liquidated Damages Under Both FLSA and State Law Improper, Says Second Circuit

In a summary order issued on December 7, the Court of Appeals for the Second Circuit–in Chowdhury v. Hamza Express Food Corp., No. 15‐3142‐cv–held that an award of liquidated damages under both the Fair Labor Standards Act and the New  York Labor Law with respect to the same violation was improper: [The Labor Law] does … Continue Reading

Chicago Sees A Major Uptick in FLSA Litigation, Consistent With National Trends

The U.S. District Court for the Northern District of Illinois has emerged as one of the nation’s busiest federal district courts with respect to wage-and-hour litigation.  As reported by Crain’s Chicago Business, in 2015 alone, 542 Fair Labor Standards Act actions were filed in the Northern District of Illinois.  Between 2011 and 2015, wage-and-hour actions … Continue Reading

30 Days Until New Overtime Rules Take Effect

The new overtime rules—requiring a minimum weekly salary of $913 ($47,476 annually) for most exempt executive, administrative, or professional employees—are scheduled to take effect on December 1. Remember that both overtime pay (for non-exempt employees) and the salary basis test (for exempt employees) are calculated on a workweek basis, and that each workweek–a fixed and regularly … Continue Reading

Fifth Circuit Instructs that, When Raised, Arbitrability is a Gateway Issue that Must Be Considered Prior to Conditional Certification in FLSA Collective Actions

On October 4, 2016, the Fifth Circuit in Reyna v. International Bank of Commerce instructed district courts that when the issue of arbitrability is raised in a prompt motion to compel, it should be decided at the outset of the litigation—even prior to deciding conditional certification in FLSA collective actions. Reyna builds upon the Fifth … Continue Reading

100 Days Until the New Overtime Rule Takes Effect: Is Your Company Ready?

On December 1, 2016, the annual cost of classifying most executive, administrative, or professional employees as “exempt” from the overtime rules more than doubles ($23,660 to $47,476).  Is your company ready for this change? Do you have your list of potentially affected employees? Have you compared the cost of increasing their salaries to the new … Continue Reading

Sixth Circuit: Loan Underwriters Not Entitled to Overtime Pay

On March 2, 2016, the U.S. Court of Appeals for the Sixth Circuit held that residential loan underwriters of Huntington National Bank are administrative employees under the FLSA and therefore not entitled to overtime pay.  The primary duty of an underwriter is to decide whether or not a customer qualifies for a desired loan, relying on an initial recommendation generated by … Continue Reading
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