News & Analysis as of

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

California Supreme Court Clarifies Requirements of Commissioned Employee Exemption

In recent years there has been substantial litigation regarding whether and how employers may satisfy California minimum wage requirements for compensation plans involving commissions. In Peabody v. Time Warner Cable, Inc.,...more

Financial Advisors Advance Their Cause for Overtime Pay

According to Judge Frank Maas of the U.S. District Court for the Southern District of New York, the first step was taken in the settlement process between Merrill Lynch & Co. and over 500 field financial advisors. Recently...more

Remember to Calculate Overtime Pay Based on Your Employees' "Regular Rate of Pay"

When a non-exempt employee is entitled to overtime compensation, the hourly rate of pay from which the overtime compensation is calculated is known as the employee's "regular rate of pay." If an employee subject to...more

Dispelling Employment Myths Series – Issue 5: Not Entitled to Overtime

Ever play the game telephone? It’s a game in which one person whispers something into the ear of the next person, and that person is supposed to whisper the same thing into the ear of the next person, and so on. When the...more

New Department of Labor Rule to Limit Live-In Employees Eligible for Exempt Status

The Fair Labor Standards Act (FLSA) has long provided an exemption for overtime wages to employees engaged in "companionship services," such as in-home caretakers who sleep at their patients' homes. Recently, however, the...more

Are Your Sales Employees Properly Classified as Exempt?

Many employers treat their sales employees as exempt from the Fair Labor Standards Act's overtime and minimum wage requirements. Regardless of whether they pay them a salary, commissions, or some combination of both,...more

California Supreme Court Issues Favorable Decision for Employers in Duran v. U.S. Bank

The California Supreme Court has issued its long-awaited decision in Duran v. U.S. Bank. In a significant victory for employers, the Court unanimously agreed to overturn a $15 million judgment in a wage and hour class action...more

FLSA Overtime, Minimum Wage Lawsuits Continue to Skyrocket

My colleagues and I talk regularly about the ever-increasing number of wage and hour cases alleging violations of minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA). ...more

Court Approves FLSA Settlement that Extinguishes Related State Law Claims

When an employer settles a collective action lawsuit under the Fair Labor Standards Act (FLSA), may the settlement agreement also include a release of any rights to overtime pay which the plaintiffs may have under state law?...more

Some Surprises in DOL’s Just Issued Spring 2014 Regulatory Agenda

On Friday, May 23, 2014, the White House, through its executive branch and other federal agencies, issued the Spring 2014 edition of the Semiannual Regulatory Agenda. Published twice a year, the agencies’ regulatory agendas...more

Once An Employee – Never A Volunteer

It should be obvious that employees cannot be required to perform services for their employers as “volunteers.” This is properly seen by the Department of Labor as a ruse to avoid paying wages or overtime. By contrast,...more

SuperVision Today - May 2014

Notes from the Chair and Executive Editor - Welcome to the second quarter edition of SuperVision Today, the quarterly e-newsletter published by Spilman's Labor & Employment Group. Readers of this newsletter are invited...more

New Decision Clarifies Summary Judgment Standards for Off-the-Clock Claims

On May 20, 2014, the First District Court of Appeal in Jong v. Kaiser Foundation Hospitals, issued a decision affirming the summary judgment granted as to one of the individual class representatives in a putative class action...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

Rebuking “Trial by Formula,” Federal Court Decertifies Rule 23(b)(3) Class Action

In Stiller v. Costco Wholesale Corp., No. 3:09-cv-2473-GPC-BGS, Plaintiffs Eric Stiller and Joseph Moro alleged that Costco’s loss-prevention closing procedures effectively “forced” employees to work off-the clock without...more

President Orders Changes to Labor Regulations to Expand Overtime Pay

An estimated 10 million workers stand to benefit from President Obama’s recent directive ordering the U.S. Department of Labor (DOL) to update its regulations making more workers eligible for overtime pay....more

The High Cost of Noncompliance

A consent judgment reached stemming from an investigation by the Department of Labor’s Wage and Hour division into Cleveland employer Citywide Protection Services, Inc.’s payment practices serves as a reminder of the...more

The Time-and-a-Halfs They Are A ‘Changin’

Earlier this month, President Obama directed the U.S. Department of Labor to update the federal overtime pay regulations by revising the salary component of the executive, administrative, and professional exemptions. To...more

Obama Calls For Revisions Of "White-Collar" FLSA Overtime Exemptions

In an unexpected move, the Obama administration officially announced that it will issue a Presidential Memorandum to the U.S. Department of Labor (DOL) instructing its Secretary to update regulations regarding overtime...more

Secretary of Labor Directed to Update Federal Overtime Rules

In a brief memorandum recently issued to the Secretary of Labor, President Obama directed the Department of Labor (DOL) to update federal overtime rules. As noted in the memorandum, the Fair Labor Standards Act (FLSA)...more

President Obama Announces Initiative to Increase Minimum Salary for Employees Exempt From Overtime Requirements

Faced with continuing Congressional refusal to consider an increase to the minimum wage, on Wednesday, President Obama announced his intent to direct the Department of Labor to consider raising the minimum weekly salary...more

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

FLSA Overtime Rule Changes Likely: What Would They Mean For Employers?

New overtime rules likely to be issued by the Obama Administration would make more executive or managerial employees eligible for overtime pay under FLSA. Under the current federal rules, executive or managerial...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

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