Archives: Fair Labor Standards Act

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Minutes Count: California Supreme Court Rejects De Minimis Doctrine for Wage Claim

On July 26, 2018, the California Supreme Court ruled in Troester v. Starbucks Corporation that the federal de minimis doctrine does not apply to a California employee’s class action wage claims.  This ruling will have widespread impact, particularly on those employers with large numbers of non-exempt employees such as retailers and food service providers, as … Continue Reading

US Supreme Court Says No Overtime Pay for Auto Service Advisors

In a case of straightforward statutory interpretation, the U.S. Supreme Court held on April 2, 2018 in Encino Motorcars LLC v. Navarro that service advisors employed at car dealerships are exempt from the overtime pay requirement under the Fair Labor Standards Act (FLSA). The dispute began in 2011, when service advisors employed by Encino Motorcars, … Continue Reading

U.S. Department of Labor Announces New Pilot Employer Self-Reporting Program To Address Overtime and Minimum Wage Violations (US)

On March 6, 2018, the U.S. Department of Labor (“DOL”) announced a new, nationwide pilot program which it claims will facilitate quick and efficient resolutions of Fair Labor Standards Act (“FLSA”) minimum wage and overtime violations by allowing employers to promptly pay back wages to employees and at the same time avoid time consuming litigation … Continue Reading

State of the Union Address Provides Hints of Trump Administration Priorities for U.S. Employers

In his first State of the Union Address, President Trump made the case for his first year in office as one of extraordinary legislative and regulatory accomplishments as part of his Administration’s efforts to build a “Safe, Strong, and Proud America.” In fact, 2017 was not a year of major legislative accomplishments, with the exception … Continue Reading

Arizona Law Generally Exempts Franchisors From Being Considered Joint Employers With Franchisees (US)

In the wake of fluctuations in federal labor law, in particular, as interpreted by the National Labor Relations Board (“NLRB”), regarding who may be considered a joint or co-employer of an employee, in 2017, Arizona enacted its own joint employer law.  A.R.S. § 23-1604 makes clear that, at least under Arizona law, a franchisor is not a … Continue Reading

Does the US Winter Weather Impact Employee Wages? (US)

With much of the United States covered in ice and snow, many employers are questioning when they need to pay employees who are affected by weather-related disruptions. All throughout the United States employees have been late to work because they were stuck in the snow or their kids’ school was yet again delayed and businesses … Continue Reading

U.S. Department of Labor Reinstates Previously Rescinded Wage and Hour Opinion Letters (US)

On January 5, 2018, the Wage and Hour Division of the U.S. Department of Labor (DOL) reissued 17 advisory Opinion Letters that were published during the final months of former President George W. Bush’s administration, but were subsequently rescinded by the Obama administration.  Opinion Letters do not establish new law, but instead are vehicles through … Continue Reading

U.S. Department of Labor Abandons Strict, Six-Factor Intern Test In Favor Of Flexible “Primary Beneficiary” Test (US)

On Friday, January 5, 2018, the United States Department of Labor (“DOL”) issued a statement that it will no longer follow its six-factor test in determining whether an individual is a non-employee intern (rather than an employee) under the Fair Labor Standards Act (“FLSA”), and instead will apply a broader analysis commonly referred to as … Continue Reading

Third Circuit Refuses to Give Progressive a (Rest) Break on Compensable Flex Time Policy

On October 13, 2017, the US Court of Appeals for the Third Circuit ruled in a precedential decision that employers are obligated by the Fair Labor Standards Act (FLSA) to pay their employees for breaks of 20 minutes or less, even if they are logged off their computers and free from any work-related duties. The … Continue Reading

Ninth Circuit Refuses to Defer to DOL’s Interpretative Guidance on FLSA Tip Credit Regulation

The Fair Labor Standards Act (“FLSA”) provides that employers ordinarily must pay their non-exempt employees at least the federal minimum hourly wage of $7.25.  However, employers may pay “tipped employees” as little as $2.13 per hour if they regularly earn more than $30 per month in tips, and then make up the difference between the … Continue Reading

Texas Federal Judge Invalidates Obama-Era Overtime Regulations

In 2016, the Department of Labor issued long-awaited amendments to the Fair Labor Standards Act (“FLSA”) regulations that would have raised the minimum salary for employees exempt under the so-called “white collar” exemptions from $455/week ($23,660 annually) to $913/week ($47,476 annually) (the “Final Rule”). The Final Rule also would have required an upward adjustment to … Continue Reading

Class Action Waivers: Two More Fifth Circuit Opinions Favor Waivers Over NLRB Challenges

In early August, the United States Court of Appeals for the Fifth Circuit issued two decisions regarding class and collective action waivers.  Like its earlier decisions in D.R. Horton, Inc. and Murphy Oil USA, Inc., both decisions supported employers’ use of waivers to eliminate group lawsuits against them in employment cases.  The two new cases, … Continue Reading

US Department of Labor Resumes Issuing Opinion Letters To Assist Employers Navigate Federal Wage & Hour and Leave Laws

Newly appointed Secretary of Labor Alexander Acosta announced on June 27 that the U.S. Department of Labor (“DOL”) would resume issuing opinion letters in response to employers and employees who submit inquiries seeking fact-specific interpretations of the Fair Labor Standards Act (“FLSA”) and the Family and Medical Leave Act (“FMLA”).  Opinion letters are official, interpretative … Continue Reading

US Department of Labor Withdraws Obama-Era Interpretation Letters On Key Wage And Hour Issues

On June 7, 2017, the US Department of Labor (DOL) withdrew its 2015 Administrator’s Interpretation on “independent contractor” status under the Fair Labor Standards Act (FLSA) and its 2016 Administrator’s Interpretation for determining “joint employment” under the FLSA. The two guidance memos specifically were intended to increase liability for employers under the Fair Labor Standards … Continue Reading

NLRB Rules That Barring A Former Hotel Employee Who Sued Her Employer From The Premises Is An Unfair Labor Practice

On May 16, 2017, a two-member majority (Members McFerran and Pearce) of the National Labor Relations Board held that it was an unfair labor practice for the Grand Sierra Resort &Casino (GSR) to bar a former employee from its premises after she filed a class and collective action lawsuit against the employer.… Continue Reading

House passes bill to allow private employers to offer paid time off in lieu of overtime time pay

On May 2, 2017, the House passed H.R. 1180, The Working Families Flexibility Act of 2017, which would allow private employers to offer paid time off, also known as “comp time,” instead of time-and-a-half wages for overtime hours. Congress had previously amended the Fair Labor Standards Act in 1985 to allow public-sector employees to be … Continue Reading

DOJ Seeks Another Extension of Time to Respond In Appeal On DOL Overtime Rule

As we previously reported, in November 2016, a Texas District Court’s temporary restraining order halted implementation of the Obama administration’s Department of Labor (DOL) regulations that were set to expand overtime pay for many US workers starting in December 2016.  The Obama administration’s Department of Justice (DOJ) appealed that order, and asked for expedited review by the … Continue Reading

New Overtime Regulations Put On Hold – U.S. Federal Court Judge Enjoins Implementation of FLSA Regulations

As we reported previously, in September 2016, 21 U.S. states filed a lawsuit to enjoin the implementation of the long-anticipated Fair Labor Standards Act (“FLSA”) regulations, which were scheduled to go into effect on December 1, 2016. The states argued that the Department of Labor’s regulations (the “Final Rule”) would force states and businesses to … Continue Reading

New FLSA Overtime Regulations Set to Become Effective In Just Days, But Further Developments Are Anticipated

As we have previously reported, the final FLSA overtime rule is set to go into effect on December 1, 2016—now just days away.  The new rule raises the salary threshold for workers to qualify as exempt from overtime pay requirements from $455 to $913 per week (or from $23,660 to $47,476 per year), and increases … Continue Reading

Twenty-One States Join Forces to Oppose the FLSA’s New Overtime Rule

As most of you know, in May 2016 the Department of Labor (DOL) released its long-awaited Final Rule modernizing the Fair Labor Standard Act’s (FLSA) white-collar exemptions to the overtime requirements of the FLSA.  See our rundown of the changes in our earlier post here. The new rule is scheduled to take effect December 1, … Continue Reading

Seventh Circuit Goes It Alone – Upholds NLRB Decision Holding That Class and Collective Action Waivers in Arbitration Agreements Are Unlawful and Unenforceable

The court is the first federal appellate court to accept the NLRB’s position on the issue The long-running teeter-totter battle between National Labor Relations Board (NLRB or Board) and employers regarding the lawfulness of class and collective action waivers in employment arbitration agreements continues.  Joining the fray this week is the U.S. Court of Appeals … Continue Reading
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