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Showing 37 posts in FLSA.

Obama Administration’s Overtime Rule Invalidated

A federal judge from Texas struck down the Obama administration’s overtime rule, finding the salary-level test set forth by the Department of Labor did not account for an analysis of an employee’s job duties for purposes of determining whether an employee is exempt from overtime pay.  A copy of the court's opinion is available here. More ›

Uncle Sam Wants You . . . To Tell Him a Little About Overtime

A Department of Labor (DOL) 2016 Final Rule pushed federal regulations under the Fair Labor Standards Act (FLSA) that would have more than doubled the “threshold” below which nearly every salaried employee would be entitled to overtime. In November 2016, a federal district court prevented the new threshold from coming into effect, and the subsequent election of President Trump called into doubt whether revised rules would ever be implemented. More ›

Local Services Providers Receive Clarification of Enterprise Coverage Under the FLSA

Earlier this week, the Eleventh Circuit issued rare guidance to local service providers as to which employees must be paid overtime under the Fair Labor Standards Act (FLSA). In doing so, the Court clarified the distinction between "goods" and "materials" for purposes of the ultimate consumer exception to FLSA enterprise coverage. More ›

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 ›

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