Final Rule from U.S. Department of Labor Provides Clarifying Update to Joint Employer Regulations

January 28, 2020 by Hinshaw & Culbertson LLP

The U.S. Department of Labor recently issued a Final Rule to update longstanding "joint employer" regulations which will take effect March 16, 2020, under the Fair Labor Standards Act (FLSA). Under the FLSA, an employee may have one or more employers that are jointly and severally liable for violations of the FLSA. The new regulations provide clarity and, consequently, increase employers' comfort levels as to agreements with independent service providers. More ›

U.S. Department of Labor Rings in the New Year with New Opinion Letters Regarding FMLA and the FLSA

January 24, 2020 by Linda K. Horras

The U.S. Department of Labor (DOL) issued three opinion letters on January 7, 2020—one addressing the Family Medical Leave Act (FMLA) and two on the Fair Labor Standards Act (FLSA). The FMLA letter clarifies whether a combined general health district must consider employees of the county located in said health district when determining FMLA eligibility. As for the FLSA letters, one explores how a nondiscretionary bonus factors into an employee's regular rate of pay, while the other looks at whether per-project payments satisfy the salary basis test for exemption. Below, we take a closer look at each of these letters. More ›

Overtime Rules Update: DOL Adjusts Minimum Salary Requirement for Salaried Employees

October 4, 2019 by Hinshaw & Culbertson LLP

The United States Department of Labor (DOL) made official a new regulation increasing the minimum salary level that salaried employees must be paid to be exempt from overtime. As of January 1, 2020, if a salaried employee makes less than $684 per week—or $35,568 per year—the employee will be entitled to overtime for the hours worked beyond 40 hours in a week. More ›

DOL Proposes Tweaks to FLSA Regular Rate Regulations, Changes Won't Impose New Regulatory Requirements

April 2, 2019 by Alexander M. Baggio

The Wage and Hour Division of the U.S. Department of Labor (DOL) has announced proposed changes to the regular rate regulations of the Fair Labor Standards Act (FLSA). According to the DOL, the proposed changes are focused on updating and clarifying the regular rate regulations, and intended to encourage employers to provide additional benefits to workers without inviting litigation. More ›

Employee Participation in an Employer-Sponsored Volunteer Program is Not Compensable, DOL Says

March 26, 2019 by Hinshaw & Culbertson LLP

The Department of Labor (DOL), Wage and Hour Division, recently issued its first set of opinion letters for 2019. One of the letters, FLSA2019-02, addresses whether employee time spent participating in an employer's optional volunteer program is compensable work time under the Fair Labor Standards Act (FLSA). As many employers today offer optional volunteer programs to their employees, this opinion letter is helpful for employers to determine whether employee time spent volunteering with such a program is compensable. More ›

Department of Labor Removes 80-20 Tipped Work Rule

November 9, 2018 by Hinshaw & Culbertson LLP

The federal Department of Labor’s Wage and Hour Division (WHD) provided updated guidance on its application of the “tip credit” rule for tipped employees who perform non-tip-generating tasks. More ›

State Common Law Claims May Be Preempted By The Fair Labor Standards Act

July 17, 2018 by Tom H. Luetkemeyer

A District Court Judge in the Eastern District of Pennsylvania recently ruled that the Fair Labor Standards Act (“FLSA”) preempted a plaintiff’s attempt to add state common law counts for breach of contract and unjust enrichment onto his statutory wage and hour claims. Formica v. US Environmental, Inc., (No. 18-459; July 11, 2018).  The plaintiff alleged FLSA, Pennsylvania Minimum Wage Act, and Pennsylvania Wage Payment and Collection Law claims.  More ›

California Court Okays Hour Rounding Policy

June 26, 2018 by Linda K. Horras

In  AHMC  Healthcare,  Inc.  v.  Letona,  decided  earlier  this  week,  a  California  state  of  appeals  court  considered  an  employer's  use  of  a  time  clock  rounding  system  and  whether  it  violated  California  Labor  Law.  While  it  is  a  California  case,  it  rests  on  the  federal  regulation  governing  time  rounding  found  in  29  CFR  §  785.48  and  is  thus  an  instructive  case  for  all  employers  who  use  or  are  thinking  about  adopting  a  rounding  policy.  More ›

SCOTUS Green Lights Class Action Waivers in Major Win for Employers

May 23, 2018 by Linda K. Horras

The United States Supreme Court ruled earlier this week that employees must submit claims to arbitration on an individualized basis when their employment agreements require it, even when those claims could be brought as class or collective action under federal legislation such as the Fair Labor Standards Act. Writing for the majority, Justice Neil Gorsuch held that parties to an arbitration agreement are bound by their agreement, as the Federal Arbitration Act envisioned. The Court cited the long history of supporting private arbitration agreements as an efficient and cost-effective means of handling disputes between parties, including parties to an employment agreement who have a dispute over wages. More ›

The Risks and Rewards of Allowing Employees to Work During FMLA Leave

May 17, 2018 by Linda K. Horras

The Family & Medical Leave Act ("FMLA") grants employees leave in certain enumerated situations. The Fifth Circuit Court of Appeals recently held it also allows the employee and employer to strike an agreement that the employee will perform certain duties and responsibilities during the leave and receive compensation for it without creating an actionable interference claim under the FMLA. More ›

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