News & Analysis as of

A closer look at the expansion of overtime

Last week’s announcement by President Obama of a planned increase to the number of employees who would be entitled to receive overtime pay set off a barrage of reactions. Now, let’s take a closer look at what it is all about....more

Many Exempt Employees With Salaries $30,000 To $50,000 May Soon Be Entitled To Overtime

On March 13, 2014, President Obama signed a memorandum directing the United States Department of Labor to revise the regulations concerning employees' eligibility for overtime pay under the Fair Labor Standards Act ("FLSA")....more

What’s Happening with Overtime?

Some misconceptions are floating around regarding the current status of federal overtime laws. .Fact: Nothing has actually changed yet. .Fact: President Obama has ordered the Department of Labor (DOL) to evaluate...more

President Obama Orders the Department of Labor to Modernize Overtime Rules

In a White House ceremony on Thursday, March 13, 2014, President Barack Obama signed a memorandum ordering the Secretary of Labor to “propose revisions to modernize and streamline the existing overtime regulations” governing...more

Obama Directs Initiative to Update FLSA Overtime Regulations Likely to Tighten White-Collar Classifications

President Barack Obama on Thursday signed a Presidential Memorandum directing the Secretary of Labor to update the Fair Labor Standards Act (FLSA) regulations governing which "white collar" employees qualify for overtime...more

Labor and Employment: President Obama Directs Department of Labor to Modernize and Streamline FLSA Overtime Regulations

On March 13, 2014, President Obama issued a memorandum directing the Secretary of Labor to update and streamline the Fair Labor Standards Act (FLSA) overtime regulations. In the memorandum, President Obama noted that the...more

President Obama Directs the DOL to Attack FLSA Exemptions

Everybody is talking about it – President Obama’s announcement at the end of last week that existing overtime regulations be “modernized” and “streamlined” – but what exactly does this mean? The answer is, only time will...more

Revamping Overtime Regulations: No Specifics Yet

President Obama announced this week that he is directing the Secretary of Labor to “modernize and streamline” existing overtime regulations under the Fair Labor Standards Act. He characterized the current regulations as...more

President Obama Signs Memorandum To Expand Overtime Protection

On March 13, 2014, President Obama signed a Presidential Memorandum directing the Department of Labor to create new regulations making more workers eligible for overtime pay under the Fair Labor Standards Act's (FLSA)...more

Dramatic Changes Ahead for Overtime Laws

On Thursday, President Obama will instruct the U.S. Department of Labor to revise its overtime regulations implementing the Fair Labor Standards Act. The President’s plan will force employers to pay more overtime to millions...more

President Obama Sics the DOL on Corporate Profits, Says Reduce the Number of Exempt Workers and Pay More Overtime

Just when you thought it was safe to go back in the water . . . or at least thought you might be getting a handle on the highly technical and nuanced regulations under the Fair Labor Standards Act governing the “white collar...more

When are Paralegals Illegal?

When they are not properly paid. A number of law firms and corporate employers consider paralegals to be exempt from overtime. At the federal level, the Department of Labor (DOL) has stated that most paralegals lack...more

Preventing A Messy "Failed Exemption" Lawsuit

(Labor Letter, February 2014) - In recent years employers have become all too familiar with lawsuits alleging violations of the federal Fair Labor Standards Act (FLSA). According to the Administrative Office of the...more

New York Federal District Court Endorses Use of Fluctuating Workweek Overtime Payment Method Where Employer Pays Performance-Based...

True story: the other day I was speaking with a friend in the HR realm and I asked him whether he was familiar with the fluctuating workweek. He jokingly answered: “does that have anything to do with my weight gain during the...more

An Offer You Should Refuse: Eleventh Circuit Says No to Private Settlements of FLSA Claims

With a fact pattern exemplifying the need for protection of employees under the Fair Labor Standards Act (FLSA), the Eleventh Circuit has held that former employees may only settle their FLSA claim 1) under the supervision of...more

Chipotle Assistant Managers Allege They Were Misclassified As Exempt Employees, Court Rules They Can Proceed With Overtime Claims

A New York federal court recently granted conditional certification of a nationwide class of Assistant Managers at Chipotle restaurants based on the allegations that Chipotle misclassified Assistant Managers as exempt from...more

City Settles with High Ranking Fire Officials for Overtime Backpay

On March 14, 2013 a Federal Judge in the Western District of Pennsylvania approved an FLSA settlement between the City of Pittsburgh and the Pittsburgh Fire Department’s high-ranking fire officials....more

Wage and Hour Laws - Are Your Employees Exempt or Non-Exempt?

Labor and employment lawyers expect the Department of Labor to increase the number of audits it conducts this year. To protect your business from lawsuits, fines and fees, you should review your exempt and non-exempt job...more

Inside Sales Exemption Poorly Understood by Many Employers

Over the past decade, employers have faced a continuing stream of claims alleging that employees have been misclassified as exempt from overtime compensation rules, as well as state laws regarding meal periods and rest...more

Plaintiffs Must Offer "Significant Proof" Of A Common Policy Or Practice To Satisfy Commonality Under Rule 23 Post-Dukes

On January 28, 2013, Hon. George King of the United States District Court for the Central District of California issued an order in Pedroza v. PetSmart, Inc. denying class certification of exempt misclassification claims...more

And the Rich Get Richer

Catchy title, right? In this case, however, it isn’t necessarily true since we are talking about computer software employees and physician employees and not Bill Gates. Nevertheless, California’s Department of Industrial...more

A Full Day’s Pay for Partial Day’s Work?

Many of you wonderful people have asked me for information regarding deductions from employees who are exempt from overtime for partial or full day absences. Keep in mind that an employee will be considered to be paid on a...more

Supreme Court’s Rx for Pharmaceutical Industry

For the past decade, employers have been frustrated by what they describe as a moving target when it comes to properly classifying employees as either exempt (and thus not eligible for overtime) or non-exempt (and thus...more

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