News & Analysis as of

Federal Court Finds No Willful Violation for Misclassification of Mortgage Loan Officers

A federal court in Oklahoma delivered another blow to claims by mortgage loan officers that they are entitled to overtime under the Fair Labor Standards Act (FLSA). In Chapman v. BOK Financial Corporation, the court...more

Learning From LinkedIn: More Big Name Employment Law Violations Showcase Need For Wage and Hour Compliance Training

I confess that up until the huge LinkedIn case last month, I had no idea what wage and hour training even is, or why anyone needed to take it. After all, it’s pretty simple, right? Pay nonexempt workers their regular wage for...more

Third Circuit: Availability of Classwide Arbitration is an Issue for the Courts – Not Arbitrators – Unless the Parties Agreed...

Wednesday, the Third Circuit held that the determination of whether an agreement allows classwide arbitration is a question of arbitrability for the courts “unless the parties unmistakably provide otherwise.” Opalinski v....more

Store to Pay Up to $6.5 Million for Misclassifying Workers

A national home-improvement store recently agreed to pay thousands of California workers as much as $6.5 million for improperly labeling them independent contractors (IC) instead of employees....more

Arizona District Court Rejects Joint Employer Arguments in Independent Contractor Case Alleging Misclassification of Truck Drivers

A month ago we discussed the Ninth Circuit’s decision in Ruiz v. Affinity Logistics Corp., Case No. 12-56589 (9th Cir. June 16, 2014), in which the employer treated its delivery drivers as employees in everything but name,...more

Department of Labor to Revise Federal Regulations Interpreting the Right to Receive Overtime Pay under the Fair Labor Standards...

In a March 2014 Memorandum, President Obama directed the Department of Labor to “modernize and streamline” the regulations that dictate when an employer may lawfully designate an employee as exempt from overtime pay under the...more

Recent Settlement Of FLSA Collective Action A Reminder Of The Perils Of Outside Sales Exemption

A federal district court judge recently approved the final settlement of a lawsuit between a collective class of sales representatives and their employer regarding an alleged misclassification under the outside sales...more

Court Awards Fees And Costs Against USDOL

A Texas federal court has ordered the U.S. Labor Department to pay more than $560,000 in attorney's fees, paralegal fees, and travel expenses growing out of litigation under the federal Fair Labor Standards Act. USDOL...more

Restoring Overtime Pay for Working Americans Act: Senate Democrats Join President Obama’s War On FLSA Exemptions

Yesterday, Senate Democrats introduced a bill cited as the “Restoring Overtime Pay for Working Americans Act” (“the Act”), which would amend the Fair Labor Standards Act (“FLSA”) to make it more difficult for employers to...more

InterConnect FLASH! No. 39 - Recent Court Decisions Reflect the Rule of Reason: Totality of the Circumstances Regains Traction

Two recent court decisions from two different jurisdictions, issued several weeks apart, reflect a more balanced and reasonable approach for determining worker classification issues based on the totality of the facts and...more

Connecticut Congressman Sponsors “Payroll Fraud Prevention Act”

Readers of this blog will be aware that the misclassification of employees as independent contractors has been a major concern of state and federal authorities for several years. Employers don’t provide workers compensation...more

November Target For Proposed Exemption Changes

As we reported previously, in March President Obama directed the U.S. Labor Department to "modernize and streamline" its regulations governing the federal Fair Labor Standards Act's Section 13(a)(1) executive, administrative,...more

School is Almost Out and Summer Interns are (Still) In

With the Memorial Day weekend approaching, many people are looking forward to hitting the beach, firing up the grill and polishing off their golf clubs, which are, for many Northeasterners, covered in cobwebs after this long...more

Thinking about Hiring Interns? New Case Reminds Employers of Rules on Interns

Following similar decisions involving Hearst Corporation and Viacom, a federal judge in the Southern District of New York recently granted conditional certification of a potential nation-wide class of approximately 3,000...more

10 Tips for Hiring Summer Interns and Staying FLSA Compliant

Unpaid internships traditionally allow inexperienced students to gain hands-on knowledge in their field. In turn, employers use internship programs to find and test-drive new talent, increase productivity, support students...more

Florida District Court Rejects ERISA Claims Premised on Alleged FLSA Violations

Plaintiffs in most class and collective actions try to plead their claims in such a way as to exert the maximum pressure against the employer. In some instances, that raises the issue of whether the plaintiff should assert...more

The Audit's Done, And We Need To Reclassify – Now What?

Let's assume you've done an internal audit, or one required by the Department of Labor, and found – as so many companies do – that certain titles/positions require reclassification from exempt to non-exempt under the Fair...more

Are Your Employees Properly Classified?

In This Presentation: - Introduction - FLSA “White Collar” Exemptions - Three Tests for Exemption - Salary Level Test - Salary Basis Test - Can the Employer Make Deductions? -...more

Proposed "Independent Misclassification" Law

Government efforts aimed at cracking down on perceived independent-contractor misclassification show no signs of slowing down as 2014 begins. On November 12, 2013, the “Payroll Fraud Prevention Act of 2013” (PFPA) was...more

Strippers and the Fair Labor Standards Act: Lessons for All Employers

Late last month, in the Southern District of Florida, adult entertainers at several Rick’s Cabaret locations filed a lawsuit alleging that they were improperly categorized (and thus improperly compensated) as independent...more

Wage and Hour Compliance Priorities for 2014

It is easy for us to recommend that employers conduct regular and comprehensive wage and hour audits that examine all facets of the employer’s pay practices to ensure compliance with the myriad of wage and hour laws. After...more

Senate "Misclassification" Bill Bears Watching

Yet another "misclassification" bill introduced in the U.S. Senate would impose new prohibitions, requirements, and penalties relating to categorizing a worker as being either an employee or a non-employee. The "Payroll Fraud...more

"Right to Know" Initiative Apparently Expanded

The U.S. Labor Department has announced another proposal to conduct a survey relating to "worker classification issues" under the federal Fair Labor Standards Act. ...more

New Case Provides Lessons That May Help Companies Avoid Pitfalls When Structuring Independent Contractor Relationships

The district court's opinion denying cross-motions for summary judgment in Bobbitt v. Broadband Interactive, Inc., No. 8:11-cv-2855 (M.D. Fla. Oct. 21, 2013) illustrates how not to structure an independent contractor...more

How To Calculate Unpaid Overtime, The Sequel: Fifth Circuit Rejects FWW Method In Misclassification Cases

In Black v. SettlePou P.C., the Fifth Circuit Court of Appeals overturned a district court’s ruling concerning the proper methodology for calculating damages when an employee is misclassified as exempt. In so doing, the Fifth...more

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