News & Analysis as of

Paid Time Off (PTO) Fair Labor Standards Act (FLSA)

Maynard Nexsen

Why Employment Counsel Need a Seat at the Table for All M&A Transactions

Maynard Nexsen on

While it is undisputed that a talented corporate transaction attorney is critical to the success of a deal, it is also imperative that an integral member of the transaction team include a seasoned employment attorney,...more

Lerch, Early & Brewer

Clint Eastwood, Common Employer Mistakes, and Happy Plaintiffs’ Attorneys

Lerch, Early & Brewer on

“Go ahead, make my day” – catchphrase from the 1983 film, Sudden Impact, spoken by the character Harry Callahan, played by Clint Eastwood. With a nod to Clint Eastwood, below are 12 things that employers do (or fail to...more

Fox Rothschild LLP

Smart Employees Use Their Vacation Time: Third Circuit Holds PTO Is Not Part Of Exempt Employees’ Salaries Under the FLSA

Fox Rothschild LLP on

In a boon for employers with exempt employees, the Third Circuit held earlier this year as an issue of first impression that paid time off (PTO) is not part of an exempt employee’s salary under the federal Fair Labor...more

Rumberger | Kirk

How to Avoid FLSA Violations When Requiring Workers to Use PTO

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A federal appeals court recently held that employers don’t run afoul of the Fair Labor Standards Act if they involuntarily reduce workers’ PTO balances. The case addressed deductions for drops in productivity, but it may...more

Alston & Bird

Class Action & MDL Roundup 2023 Q1 – We Don’t Discount Confidentiality

Alston & Bird on

Welcome back to the Class Action & MDL Roundup! This edition covers notable class actions from the first quarter of 2023. In this edition, in pork we antitrust, paid time off is not pay, and if it’s free, it won’t cost...more

Marshall Dennehey

Third Circuit Finds Paid Time Is Not Part of an Employees’ Salary Under the Fair Labor Standards Act

Marshall Dennehey on

Key Points: In a matter of first impression, the Third Circuit rejected the argument of the plaintiffs, who were salaried employees, that paid time off (PTO) qualifies as salary under the FLSA. In doing so, the court...more

Fox Rothschild LLP

Improper Deductions From Salary Can Jeopardize Exempt Status But Not If Taken From PTO Time: Great Decision!

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The FLSA is very strict concerning proper deductions from exempt employee salaries. Improper deductions can undermine the exemption for the individual employee and possibly the entire class of exempt employees....more

Littler

Third Circuit Finds Deductions from Accrued PTO Do Not Violate Salary Basis Requirement for Exempt Employees

Littler on

The Third Circuit recently highlighted the flexibility afforded to employers when providing fringe benefits to salaried exempt employees. In Higgins v. Bayada Home Health Care Inc., No. 21-3286, 2023 WL 2518345 (3d Cir. Mar....more

Rumberger | Kirk

Employer Obligations in Disaster Response

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Every region around the world is at risk of experiencing extreme weather events, whether it is tornadoes, wildfires, winter storms, hurricanes, tropical storms, floods, earthquakes or volcanoes. Aon estimated that natural...more

Venable LLP

Third Circuit Rules that PTO Is Not Part of FLSA Salary

Venable LLP on

On March 15, 2023, the U.S. Court of Appeals for the Third Circuit held that paid time off (PTO) is not part of an employee's salary for purposes of the Fair Labor Standards Act (FLSA)....more

Littler

Littler Lightbulb – March Employment Appellate Roundup

Littler on

This Littler Lightbulb highlights some of the more significant employment and labor law developments at the U.S. Supreme Court and federal courts of appeal over the last month....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Third Circuit Finds Deductions From Exempt Employees’ PTO Do Not Impact Exempt Status Under the FLSA

On March 15, 2023, in a case of first impression, the United States Court of Appeals for the Third Circuit held that paid time off (PTO) is not part of an employee’s salary. Therefore, the employer did not compromise...more

Foley & Lardner LLP

The Third Circuit Concludes that “Salary” Does Not Include PTO

Foley & Lardner LLP on

On March 15, 2023, the U.S. Court of Appeals for the Third Circuit (covering Delaware, New Jersey, and Pennsylvania) held that paid time off is not part of an employee’s salary for purposes of the Fair Labor Standards Act...more

Jackson Lewis P.C.

PTO Deductions Are Not “Salary” Under the FLSA, Third Circuit Holds

Jackson Lewis P.C. on

In an issue of first impression, the U.S. Court of Appeals for the Third Circuit held that paid time off (“PTO”) is not a form of salary under the Fair Labor Standards Act (“FLSA”) and, therefore, deductions from a salaried...more

Poyner Spruill LLP

PTO Is Not Part of Salary According to Third Circuit Court of Appeals

Poyner Spruill LLP on

Paid time off (PTO) is not part of an exempt employee’s salary under the Fair Labor Standards Act (FLSA) according to the Third Circuit Court of Appeals. This means employers can deduct PTO from exempt employees for...more

Fisher Phillips

Federal Appeals Court Confirms the Obvious: “Salary” Does Not Include Fringe Benefits

Fisher Phillips on

A federal appeals court just ruled that paid time off (PTO) is not a part of an employee’s salary under federal wage and hour law, shutting down an inventive attempt by plaintiffs’ attorneys to find a new way to assert wage...more

Cozen O'Connor

Third Circuit Rules PTO Not Salary in Win For Employers

Cozen O'Connor on

In a win for employers, on March 15, 2023, the U.S. Court of Appeals for the Third Circuit held that paid time off (PTO) does not constitute salary for purposes of the Fair Labor Standards Act (FLSA)....more

DirectEmployers Association

OFCCP Week In Review: March 2023 # 3

Friday, March 10, 2023: FTC Jumped into the “Joint-Employer” Fray and Also Broadened Its Attack on Non-Competition Agreements to Franchise Agreements - If you did not think things were bad enough already between private...more

Stevens & Lee

Deducting Fringe Benefits for Underperformance Does Not Entitle Employees to Overtime Pay

Stevens & Lee on

Per a recent Third Circuit ruling, employers do not destroy the salary basis test for exempt employees by making fringe benefit deductions. The Third Circuit held that the term “salary” does not include fringe benefits such...more

Pillsbury Winthrop Shaw Pittman LLP

Don’t Let Bank Uncertainty Delay Payroll: Considerations for Employers

With bank uncertainty making headlines, we answer employers’ most frequently asked questions about the consequences of payroll delays, strategies for mitigating risk and more. ...more

Fox Rothschild LLP

Bad Weather And The FLSA—The Difference Between Exempt And Non-Exempt Workers

Fox Rothschild LLP on

Although Spring is almost here, many areas in the country are still being socked with winter storms. When snowstorms hit and a business closes for the entire or part of the day, the issue often arises as to whether the...more

Rumberger | Kirk

Hurricanes, Wildfires And Floods, Oh My!

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How to put emergency action plans in place for dealing with natural disasters and other emergencies - In the wake of record-breaking temperatures, widespread wildfires, 100-year flooding and other natural disasters,...more

Venable LLP

32-Hour Workweek? Not Just Yet, California Legislature Says

Venable LLP on

Mercury in retrograde or a sign of the end times? In a rare win for employers, the California legislature this past week failed to advance Assembly Bill 2932 - mandating a 4-day workweek for large employers in the state -...more

Husch Blackwell LLP

CDLE Proposes New Rules: PTO, Use It or Lose It, and Overtime Exemptions - UPDATED January 2022

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The Colorado Department of Labor approved the COMPS Rule 38, 2022 Publication And Yearly Calculation of Adjusted Labor Compensation (2022 PAY CALC) Order, 7 CCR 1103-14 and Wage Protection Rules, 7 CCR 1103-7...more

Fox Rothschild LLP

Colorado Issues New Rules Governing Employee Compensation for 2022

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The Colorado Department of Labor and Employment (CDLE) has adopted new rules, effective Jan. 1, 2022, pertaining to overtime and minimum pay, adjusted labor compensation and wage protection. These changes, adopted Nov....more

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