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Showing 18 posts in Fair Labor Standards Act.

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

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

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

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

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 ›

NFL's Termination of Security Personnel Prompts Allegations of Age Discrimination

When former District of Columbia Police Chief Cathy Lanier stepped into her new role as security chief for the National Football League (“NFL”), she let it be known there was a “new sheriff in town,” a federal lawsuit alleges. About one year later, the NFL fired 9 security representatives accounting for approximately 1/3rd of the league’s staffing for the position and approximately 75% of the security representatives who were of the of age 60 or older. The security personnel promptly filed a federal suit in the Southern District of New York. More ›

Labor Department Provides Guidance on Compensating Employee Travel Time

The Labor Department, Wage & Hour Division, issued an Opinion Letter earlier this week answering questions about the compensability of travel time for hourly technicians under the Fair Labor Standards Act (FLSA). The technicians did not work at a fixed location or a fixed daily schedule. They worked 8 to 16 hours per day at various locations. Sometimes they stayed in hotels overnight or traveled out of town for training courses. The employer provided technicians company vehicles, which they could use for both work and personal purposes. More ›

U.S. Supreme Court Rejects Narrow Reading in Favor of "Fair" Reading of FLSA Exemptions

The US Supreme Court recently issued a five-four decision addressing whether service advisers of a car dealership fell within the automobile sales exemption. While the opinion may not seem particularly helpful for businesses that do not sell cars, a deeper reading reveals that it is a positive case for employers. More ›

DOL Says Hello to Primary Beneficiary Intern Test, Goodbye to 6-Factor Test

Earlier this month, the U.S. Department of Labor announced it will now use the primary beneficiary test” to determine whether an intern must be paid.  Its announcement comes in the wake of the 9th Circuit’s adoption of the test, joining the 2nd, 6th, and 11th Circuits.  With the announcement, the DOL also updated Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act. These moves displace a 6-part test the DOL adopted in 2010 that required all factors weigh in favor of the employer. More ›

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 ›

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