March 13, 2024
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Category: FLSA

DOL’s Controversial Independent Contractor Rule Goes Into Effect

The Department of Labor’s new independent contractor rule for worker classification under the Fair Labor Standards Act (FLSA) went into effect March 11, 2024, although it is subject to several legal challenges. This latest version of the ever-changing standard lists six non-weighted economic factors to consider when deciding whether a person is an independent contractor or an employee. The new...
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January 29, 2024
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Category: Agency Enforcement

DOL’s Release of FMLA/FLSA Enforcement Data Shows Little Change From Previous Year

Enforcement statistics related to the Family and Medical Leave Act and the Fair Labor Standards Act do not show much change from fiscal year 2022 to fiscal year 2023, according to data published by the Labor Department’s (DOL) Wage and Hour Division (WHD). The data showed that in FY 2023, WHD closed 334 cases in which it found an FMLA...
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January 16, 2024
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Category: FLSA

DOL Finalizes Rule Making It Harder To Show Worker Is Independent Contractor

The U.S. Department of Labor (DOL) has finalized a rule that determines whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The new rule will go into effect March 11, 2024. It rescinds regulations issued during the Trump Administration and adopts a controversial six-part economic reality test applied during the Obama Administration. Although...
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December 12, 2023
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Category: FLSA

Six States Will Have Overtime Minimum Salary Thresholds Higher Than Fed as of 1/1/24

To be exempt from overtime pay under federal law, an executive, administrative, or professional employee must be paid a weekly salary of at least $684 (equivalent to an annual salary of $35,568), regardless of the employee’s job duties. The Fair Labor Standards Act (FLSA) does not preempt individual states from enacting their own more expansive wage and hour laws, however, and...
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November 15, 2023
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Category: Comment Letter

CWC Comments to DOL Object to Proposal for Expanding White Collar Overtime Pay

The Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, has filed written comments with the Department of Labor (DOL) objecting to its proposed rule that would substantially increase the salary test for white-collar overtime regulations. CWC’s comments question whether the proposal is needed and whether it exceeds DOL’s authority under the Fair Labor Standards Act (FLSA). If finalized...
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September 05, 2023
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Category: FLSA

DOL Proposed Rule Would Make Millions of White Collar Workers Eligible for Overtime

The Department of Labor (DOL) has released its long-expected proposal to revise the regulations governing the minimum wage and overtime exemption for salaried employees under the Fair Labor Standards Act (FLSA). The proposed rule would increase by nearly 55 percent the current salary threshold under which an otherwise exempt white collar worker would qualify for overtime pay. Specifically, the minimum...
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July 24, 2023
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Category: FLSA

Federal Court Once Again Rejects Restaurant Industry’s Challenge to Revised Tip Credit Rule

For the second time, a federal trial court in Texas has rejected an attempt by the restaurant industry to block enforcement of revised tip credit regulations issued by the Biden Administration’s Labor Department. The trial court’s latest ruling in Restaurant Law Center v. DOL, W.D. Tex. (July 6, 2023), comes after the U.S. Court of Appeals for the Fifth Circuit reversed...
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June 21, 2023
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Category: FLSA

Sixth Circuit Rejects Two-Step Procedure for Certifying FLSA Class Claims

The U.S. Court of Appeals for the Sixth Circuit has rejected the often plaintiff-friendly conditional certification that many courts grant in allowing a collective action under the Fair Labor Standards Act to proceed. Instead, the court has adopted a standard that requires lead plaintiffs to first show a “strong likelihood” that other employees are similarly situated before allowing them to...
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April 24, 2023
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Category: Compensation

Third Circuit Rules Paid Time Off Is Not Salary for FLSA Purposes

Paid time off (PTO) is not part of an employee’s salary, and therefore an employer did not violate the Fair Labor Standards Act (FLSA) by making deductions from FLSA-exempt employees’ paid time off if they failed to meet productivity goals, the U.S. Court of Appeals for the Third Circuit ruled recently in a case of first impression. The workers in Higgins...
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