Unpaid Overtime Employer Liability Issues

News & Analysis as of

Approval of the DOL's Changes to the Overtime Exemption Rules Is Imminent

Last year, the U.S. Department of Labor (DOL) proposed rules to increase the salary level for employees exempt from overtime under the Fair Labor Standards Act (FLSA). The proposed rules sought to increase the salary level...more

California Wage & Hour: Employer Q&A

Recently, the California Labor Commissioner cited a residential care provider for multiple wage theft violations, including for failure to pay minimum wage and overtime. As a result of the Labor Commissioner’s...more

New York District Court Grants Summary Judgment for Employer in Gawker Intern Case

Litigation Over Interns Dries Up Internship Opportunities - The natural and probable consequence of litigation over unpaid internships was that such opportunities would disappear because the risk of litigation for even...more

Increased Litigation Of Worker Misclassification Cases Should Place Employers On Notice Of Potential FLSA Violations

Worker misclassification violations under the Fair Labor Standards Act (FLSA) continue to be at the forefront of the U.S. Department of Labor's (DOL) enforcement priority list and of the plaintiffs' bar, which has filed...more

Unpaid Internships

The idea of offering unpaid internships is attractive for startups trying to maximize their labor force while minimizing spending. However, using unpaid interns can pose significant legal risks. This post will help you...more

Employer Beware: Be Prepared for New Labor Regulations Coming in 2016

The Fair Labor Standards Act (“FLSA”) is quite possibly the labor law that employers grapple with more than any other. The regulations can be murky at best when actually applied and the price tag for running afoul of the...more

FRANCHISOR 101: 10 Ways Franchisors Can Reduce Vicarious Liability Risks

The U.S. Department of Labor says McDonald's is liable for actions of franchisees. In the last three months a California federal court said McDonald's could be liable for a franchisee's alleged failure to pay overtime and...more

Labor and Employment News: Verdict Against High Profile Law Firm Highlights Risk of Double Damages in Wage Cases

On October 29, a Hartford jury awarded $262,930 in a wage dispute against the Haymond Law Firm, P.C. Of particular significance, the Judge permitted the jury to apply the new statutory standard for doubling...more

Can a Prevailing Plaintiff Recover Expert Fees? The Second Circuit Says “No”

The Second Circuit Court of Appeals recently ruled that expert witness fees are not recoverable under the Fair Labor Standards Act (FLSA). In Gortat v. Capala Brothers, Inc., No. 14-3304-cv (July 29, 2015), the Second Circuit...more

Eleventh Circuit adopts and clarifies "primary beneficiary" test for unpaid interns under the FLSA

On September 11, 2015, the US Court of Appeals for the Eleventh Circuit handed down a landmark decision clarifying the circumstances under which unpaid interns are entitled to receive compensation under the Fair Labor...more

Rethinking the 24/7 Response

Always connected. Always available. Always responsive. In an era where personal electronic devices have become more of a technological appendage than merely a handy gadget, a growing number of employers are grappling with the...more

Health Law Wire: FLSA Exemption for Domestic Workers Upheld by DC Circuit (8/21/15)

This morning, the United States Court of Appeals for the District of Columbia upheld the federal Department of Labor’s revisions to the “companionship exemption” under the Federal Labor Standards Act. Home Care Association of...more

Sirius XM Settles Wage & Hour Class Action With Unpaid Interns

Earlier this month Sirius XM Radio Inc. settled a wage & hour class action with a class of 1,852 unpaid interns that claimed the company violated federal and state labor laws by failing to compensate them for the work they...more

Second Circuit Rules Court Approval or USDOL Supervision of Settlements Required in FLSA Suits

On August 7, 2015, the Second Circuit ruled that suits brought under the Fair Labor Standards Act (“FLSA”) cannot be resolved privately and require approval of a federal court or supervision by the U.S. Department of Labor...more

One-Time Anomaly Or Potential Turning Of The Tides? A Review Of The Supreme Court's 2014-2015 Term

In a marked departure from the overwhelming success employers experienced before the Supreme Court in recent years, the less successful recently wrapped 2014-2015 term could be an indication that the judicial tides may be...more

Immigration-Related Documents and Information Not Discoverable in Wage and Hour Lawsuit

A New York federal court recently said that the plaintiff-employees involved in a wage and hour lawsuit are not required to produce their immigration documents and information. The case is important because it limits an...more

Independent Contractors And Overtime: The DOL Steps Into The Ring With Jarring New Regulations

The U.S. Department of Labor (DOL) has recently taken a firm stance on two of the most controversial issues facing American employers: overtime compensation and misclassification of employees as independent contractors. ...more

Unpaid Internships Given New Life by the Second Circuit

This Blog is Not about Owen Wilson and Vince Vaughn, But… “The Internship” fails the first test of merit for a comedy: “Is it funny?” I find that opening line in a review from The New Yorker hilarious. (Funnier than the...more

Should Voluntary Overtime Be Included When Calculating Holiday Pay?

Another decision has been handed down to clarify – or complicate – the position on which aspects of pay should be included when calculating an employee’s entitlement to holiday pay. The Court of Appeal in Northern...more

Worth the Fight: Conditional Certification of FLSA Collective Actions is Not Automatic

Conventional wisdom holds that courts reflexively grant motions for conditional certification in Fair Labor Standards Act (“FLSA”) collective actions. As a result, some employers do not even oppose these motions. They are...more

The Recent Auditor General Report and Central Pennsylvania Hospitals

In April, 2015, the Pennsylvania Auditor General released a Report that chastised the Department of Labor and Industry for its failure to implement adequate procedures to ensure that all complaints under the Prohibition of...more

California Court of Appeal Refuses to Enforce Forum Selection Clause Because Employer Would Not Stipulate to Apply California Law...

In Verdugo v. Alliantgroup, L.P., the California Court of Appeal held that a forum selection clause in an employment agreement was unenforceable because the employer could not prove that the employee’s rights under the...more

General Release May Not Preclude FLSA Claims Says Fifth Circuit

If I settle my employment lawsuit and release “all claims,” does that include wage-hour claims if the subject never came up? Last week, in Bodle, et al. v. TXL Mortgage Corporation, the Fifth Circuit said no....more

California Appellate Court Reverses Trial Court, Grants Motion To Compel Arbitration

A state appellate court in California reversed a trial court’s decision to deny defendant Santa Lucia Preserve Company’s (“Santa Lucia”) motion to compel arbitration, holding that plaintiffs failed to prove that the...more

Will DOL's Overtime Rule Revisions Fix the Outside Salesperson Exemption?

The Department of Labor’s long-anticipated revisions to its Part 541 overtime exemption regulations await Office of Management and Budget review before issuance in proposed form. The new rules follow President Obama’s...more

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