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Reclassifying Employees to Non-Exempt Status? Consider a “Percentage Bonus” to Avoid Costly Overtime Pay Mistakes

Many employers are planning to reclassify employees to non-exempt status now that the Labor Department is significantly raising the salary threshold for employees to be exempt from overtime pay. You likely know that...more

The Little-Known Reason Why An Employee’s Job Performance Could Tank Their Exempt Status – and What Employers Can Do About It

Last week’s news that the Labor Department is proposing a hefty increase to the weekly salary requirement to qualify employees for the overtime exemption has put the spotlight on how much you pay your employees – but that...more

The Road to Hell is Paved with Good Intentions: Top 7 Wage and Hour Mistakes for Hospitality Employers to Avoid

Employers in the hospitality industry have been through it all in recent years – from the devastation of the pandemic to ongoing labor shortages to an impending recession. These challenges and dramatic changes have surely...more

4 Reminders for Employers After a Texas BBQ Chain’s $900K Tip Pooling Mistake

Employers in the restaurant and hospitality industries know it’s a common practice to ask workers to share gratuities. Tip pools can promote teamwork and a better customer experience – but they can also land you in hot water...more

Service Charges Could Be Solution to Tip Credit Challenges: An Employer’s 6-Step Guide

Hospitality employers who utilize the “tip credit” under federal wage and hour law may feel as if they operate with a bullseye on their backs given the multi-prong assault underway against the practice. Not only are you in...more

"Outside Salesman": Two Simple Words Make for One Complex Exemption

Two recent opinion letters from the U.S Department of Labor (USDOL) examine the contours of the federal Fair Labor Standards Act’s (FLSA) “outside salesman” exemption, which exempts covered employees from the FLSA’s minimum...more

If The Shoe Fits: How Footwear Policy May Lead To Wage And Hour Violations

Hotel and restaurant employers commonly require employees to wear uniforms, some as simple as a shirt with company logo, others requiring a more complete look: jacket or blouse and pants or skirt, or dress. Some employers,...more

USDOL’s Proposal Reaffirming That There Is Nothing “Regular” About The Regular Rate

The USDOL has continued to plow through its regulator agenda. Yesterday it released its proposed guidance regarding the "regular rate" for purposes of calculating FLSA overtime pay. The NPRM is intended to update and clarify...more

Not All Deductions Are "Uniform" Under The FLSA

The federal Fair Labor Standards Act (FLSA) establishes minimum wage and overtime requirements, period. The FLSA does not explicitly require that employers cover all work-related costs, nor, does it do so by specifically...more

"Comp Time" Proposal: Be Careful What You Wish For

The U.S. House of Representatives will consider amending the federal Fair Labor Standards Act to permit private-sector employers to offer compensatory time off in lieu of monetary overtime compensation. The fast-tracked...more

A Recent Off-The-Clock Case Should Not Breed Complacency

It might sometimes seem from the parade of headline-grabbing, employee-favoring court decisions that employers are destined to lose in so-called "off-the-clock" cases under the federal Fair Labor Standards Act....more

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