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Showing 34 posts in FLSA.

Overtime Expansion Over? Texas District Court issues Nationwide Injunction of Expanded Federal Overtime Rules

What Happened?

A federal judge has blocked the U.S. Department of Labor (DOL) from implementing new regulations under the Fair Labor Standards Act (FLSA) that expand overtime eligibility to 4.2 million salaried workers. The preliminary injunction issued yesterday found that the expanded overtime eligibility rules were contrary to the FLSA and Congressional intent.

The rules were supposed to become effective December 1, 2016. They grant overtime eligibility to millions of salaried white-collar employees whose salaries were not above a threshold of $921 per week ($47,892 annually), but whose duties otherwise would have made them exempt from overtime. With the injunction, the new regulations are on hold until the court issues a final decision. More ›

Join Us October 20, 2016 for Hinshaw's 21st Annual Labor & Employment Seminar

It's that time of year again! School's back in session, the leaves are starting to change, and Hinshaw is putting on its annual Labor & Employment Seminar! Thursday, October 20th is the big day in Hoffman Estates, Illinois. Have you been wondering... More ›

Seventh Circuit Upholds Tip Credit Pay for Related, Non-Tipped Duties

As those in the restaurant industry know well, federal and state law allow employers to pay tipped employees less than the required minimum wage with the expectation they will receive enough tips to make up the difference. This is referred to as a "tip credit." There has long been a battle within wage and hour suits over whether and when an employee paid under the tip-credit can still be paid the below minimum wage rate while performing "side-work" or non-serving duties that do not directly result in tips from customers. In a decision issued on July 15, 2016, the Seventh Circuit helped clarify the line, finding that an employer did not violate wage laws by paying its servers under the tip credit for side work those servers performed. More ›

Student Interns: To pay or not to Pay?

With the school year just underway, thousands of students are heading off campus to begin student internships. (Hollywood is paying attention too.)  Of those interns, many go unpaid. In recent years, the number of students challenging their unpaid status and seeking minimum wage and overtime protections afforded by the Fair Labor Standards Act (FSLA) has increased dramatically. In the wake of these challenges, employers must carefully evaluate their internship programs, and answer this question: to pay or not to pay. More ›

Court Revives DOL's Expanded Overtime and Minimum wage Rules for Home Health Care Workers

On August 21, 2015, the U.S. Court of Appeals for the District of Columbia in Home Care Association of America v. Weil reversed a lower court decision and upheld the U.S. Department of Labor's (DOL) 2013 regulatory change regarding domestic service workers who provide companionship services or live-in care.  More ›

Everything must go? Dealership's Service Advisors not Exempt from Overtime

Classifying employees as exempt or non-exempt can prove to be an arduous task for some employers. For others, however, the classification is easy, particularly where the state or federal authorities expressly spell out the employees at issue. That still proved problematic for one California employer, however. As demonstrated by this week's Ninth Circuit opinion, even seemingly obvious classifications are not always so.  More ›

Employment Status of Cosmetology Students is not so cut and Dry

The issue of whether "interns" are employees entitled to wages has been at the forefront of employment litigation over the past couple of years. Similar to interns, cosmetology students are now filing suits against their schools, claiming entitlement to wages for hours spent performing cosmetology services as a part of their curriculum and in order to obtain their state licenses. Not surprisingly, courts across the country have reached different results in this dispute.  More ›

11th Circuit: Employer Aware of Employee's Underreported Hours Cannot rely on "Unclean Hands" Defense in FLSA Case

Santonias Bailey, a TitleMax employee, underreported his hours worked.  His supervisor instructed him to do so, and the supervisor would also himself routinely revise Baily’s time records to reflect even less hours worked.  Bailey’s self-underreporting of hours violated TitleMax’s policy, however, which requires employees to verify time worked; further, his failure to report his supervisor for the supervisor’s instructions and revisions violated a second TitleMax policy relating to reporting of problems with supervisors.  More ›

Sixth Circuit: Interruptions During meal Period do not Automatically Render time Compensable

Yesterday we told you about the California Court of Appeals' decision in which the court found that it was not unlawful for an employer to require its security guards to be "on call" during rest periods. The 6th Circuit reached a similar conclusion, but with respect to meal periods.  More ›

U.S. Supreme Court Denies Employees' Security Screening Compensation Claims

In a decision impacting businesses across the country, the United States Supreme Court has ruled that time spent by warehouse employees waiting to leave work through a security screening checkpoint is not compensable. The employees were working at a retail warehouse for a temporary staffing services company, Integrity Staffing Solutions, Inc., and filed a class action lawsuit alleging that they should be compensated for the time they were required to go through an anti-theft security checkpoint after their shift ended. The employees alleged that the waiting "postliminary" activity time was up to twenty five minutes and involved removing belts, keys and phones as well as passing through a metal detector. More ›

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