Law and the Workplace

Tag Archives: overtime

Pennsylvania Employers Must Pay for Time Spent in Security Screenings

On July 21, 2021, answering a question certified by the United States Court of Appeals for the Sixth Circuit, the Pennsylvania Supreme Court held that time spent by employees waiting to undergo and undergoing mandatory security screening on an employer’s premises is compensable “hours worked” under Pennsylvania law.  The decision from the Commonwealth’s high court, … Continue Reading

DOL and Liquidated Damages: The Breakup Only Lasted 9 Months

On April 9, 2021, the U.S. Department of Labor (DOL) rescinded the Trump-era enforcement practice of abstaining from seeking liquidated damages in connection with pre-litigation investigations and settlements of wage and hour claims.  In Field Assistance Bulletin No. 2021-2, issued by the Wage and Hour Division’s Principal Deputy Administrator, Jessica Looman, the agency announced that … Continue Reading

DOL Ends PAID Program

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

DOL Issues Opinion Letters on Administrative Exemption and Ministerial Exception

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

Trump DOL Issues Two More “Lame Duck” Opinion Letters, on Home-to-Office Travel Time and Live-In Caregivers

On December 31, 2020, the U.S. Department of Labor’s Wage and Hour Division (WHD) issued two opinion letters—one on 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

DOL’s New Opinion Letters Examine Rules on Voluntary Training Time, Travel Time

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

DOL Reiterates That Hours Need Not Fluctuate Above and Below 40 in Fluctuating Workweek Method of Pay

SchedulingIn 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

DOL Guidance Reminds Employers of Obligations to Track and Pay For Remote Work

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

DOL To Refrain From Seeking Liquidated Damages in Most Pre-Litigation Settlements

SchedulingEffective 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

Pennsylvania Supreme Court: Fluctuating Workweek Method of Overtime Pay is Unlawful

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

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

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 New Federal Overtime Rule:  What You Need to Know

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

Dems Introduce Bills to Raise Salary Minimum for Overtime Exemption

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

Retail Salespeople Paid on Commission Are Entitled to Overtime and Sunday Pay, Massachusetts SJC Says

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

DOL Validates Independent Contractor Relationships in the On-Demand Marketplace

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

Proposed Overtime Rule Published; Public Comment Period Open Until May 21

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

Unboxing The Proposed New Federal Overtime Rule

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

Moonlighting Police Officers Are Employees, Not Independent Contractors, Says Sixth Circuit

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

Reminder: New York Minimum Salary for Exemption, Minimum Wage Increasing on December 31

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

[Podcast]: Recent Developments in Federal Overtime Rules

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

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

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
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