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Department Of Labor Issues Initial Guidance On Tip Pooling Amendment

This week the Department of Labor issued new guidance, in a “Field Assistance Bulletin,” on the recent amendment to the FLSA regarding tip sharing. The recent amendment to the FLSA (which was included in the omnibus budget...more

Supreme Court Exempts Auto Service Advisors From Overtime, Rejects ‘Narrow Construction’ Principle In Applying FLSA Exemptions

After years of litigation, including two trips to the U.S. Supreme Court, on whether service advisors who work in an automobile dealership are exempt from overtime under the Fair Labor Standards Act (FLSA), the Court finally...more

FLSA Amendment Bars Employers From Retaining Tips But Removes DOL Prohibition On Tip Sharing

An amendment to the Fair Labor Standards Act (FLSA) in the omnibus budget bill, “Consolidated Appropriations Act, 2018,” passed by Congress and signed by President Donald Trump on March 23, 2018, provides that an employer...more

U.S. Department Of Labor Announces Self-Audit Program

Mistakes happen. But when those mistakes result in a violation of the Fair Labor Standards Act, what is an employer to do? Pay twice the amount of wages owed to cover both back wages and an amount equal to liquidated...more

Supreme Court (Re)hears Oral Argument On Application Of Automobile Dealer Exemption To Service Advisors

Last week the Supreme Court heard – for the second time – oral argument in Encino Motorcars, LLC v. Navarro. At issue is whether “service advisors” at dealerships are covered by what’s known as the “automobile dealer”...more

Labor Department Adopts ‘Primary Beneficiary’ Test For Determining Employee Status Of Interns, Students

The Department of Labor has decided to align its analysis under the Fair Labor Standards Act (FLSA) of the intern-vs.-employee determination with that of the majority of federal appellate courts to have addressed the issue,...more

New York Rings In New Year With Wage & Hour Presents: A Preview Of Upcoming Changes

While the federal minimum wage for non-exempt employees has remained unchanged at $7.25 per hour since 2009, and the federal salary level for exempt employees has been stymied in litigation and rulemaking since 2014, New York...more

Governor Cuomo Contemplating Elimination Of Tip Credit

Employers in New York currently are permitted to pay tipped workers a direct cash wage that is below the State minimum wage and take a “credit” for some of the tips received by employees to satisfy the difference between the...more

Labor Department Proposes Reversing Obama-Era ‘Tip-Pooling’ Rule

Employers would be expressly permitted to require servers and other tip-earning employees to share their tips with employees working in the kitchen and other “back of the house” employee, but only when the employer does not...more

Refinery Workers’ Pre-Shift Wait Time Not Compensable, Fifth Circuit Holds

Concluding that the unstructured time spent by the plaintiffs between arriving at the oil refinery and the beginning of their shifts was not “integral and indispensable” to their duties erecting scaffolds at the refinery, the...more

2018 Minimum Wage Rate Increases: Are You Ready?

The federal minimum wage has remained stagnant at $7.25 an hour since 2009. In the absence of an increase to the federal minimum wage, an increasing number of states, cities, and other municipalities have enacted statutes...more

New York Department Of Labor Proposes Scheduling Regulations

Big changes may be in store for employers in New York who require employees to be “on call” or who are accustomed to making quick changes to employee schedules, including canceling shifts when customer or client demand...more

DOL Confirms New Overtime Rule Coming

The U.S. Department of Labor confirmed on October 30, 2017 that it intends to “undertake new rulemaking with regard to overtime.” While the DOL simultaneously filed an appeal of the district court order holding the prior...more

Supreme Court Grants Certiorari (Again) To Address Circuit Split On FLSA Automobile Dealer Exemption

After effectively “punting” on the issue last year, the U.S. Supreme Court has again granted certiorari to resolve a circuit split regarding whether “service advisors” at automobile dealerships are exempt from receiving...more

DOL’s “80/20” Tip Credit Rule Entitled To No Deference, Ninth Circuit Holds, Creating Circuit Split

Finding it wholly inconsistent with the statute and the regulation it purports to interpret, the Ninth Circuit has held invalid the United States Department of Labor’s “80/20” tip credit rule, or “20% Rule,” which limits the...more

Department Of Labor Moves To Dismiss Appeal On Obama-Era Overtime Rule

As anticipated following last week’s decision by the U.S. District Court for the Eastern District of Texas, striking down the Department of Labor’s May 2016 Final Rule regarding the FLSA’s “white collar” overtime exemptions,...more

District Court Holds Overtime Rule Invalid; Is End Of Obama-Era Rule Here?

The Department of Labor’s May 2016 Final Rule, which would have more than doubled the minimum salary necessary to satisfy the “executive, administrative or professional” (the “EAP” or “white collar”) overtime exemptions under...more

Paying Employees When Weather Closes The Doors: A Refresher On Employer Obligations

As Hurricane Harvey continues to wreak havoc on Houston, Texas, and surrounding areas, undoubtedly, many businesses have been damaged or destroyed, while others have closed temporarily for safety and security reasons. These...more

Hair Today, Gone Tomorrow: Seventh Circuit Rejects Claim That Cosmetology Trainees Were Employees

Former cosmetology students are not employees entitled to pay under the FLSA and various state laws, the Seventh Circuit holds, rejecting the Department of Labor’s six-factor test but declining to adopt any bright-line test....more

Pre-Litigation FLSA Settlements Don’t Require Court Or DOL Approval, New York Federal Court Holds

In a case of first impression in the Second Circuit, a court in the U.S. District Court for the Southern District of New York has held private settlements under the FLSA entered into prior to a lawsuit being filed do not...more

City Of Chicago Not Liable For Police Officers’ After-Hours Smartphone Use, Seventh Circuit Affirms

The City of Chicago lacked either actual or constructive knowledge that members of the Chicago Police Department were performing after-hours work on their smartphones, the Seventh Circuit Court of Appeals has ruled, affirming...more

Oral Argument On Overtime Rule Appeal Scheduled For October 2nd

The Fifth Circuit Court of Appeals tentatively has set oral argument for October 2nd on the Obama-era overtime pay rule that has been blocked from government enforcement by a federal district court in Texas since last...more

Labor Department Asks For Public Input On FLSA White Collar Exemptions

As a preliminary step to replacing the December 1, 2016, Fair Labor Standards Act “white collar” exemptions Final Rule, the Department of Labor has issued a Request for Information (RFI) seeking public comment on a wide...more

Context Matters: Mortgage Underwriters Don’t Meet FLSA’s Administrative Exemption, Ninth Circuit Concludes

Mortgage underwriters do not qualify for the Fair Labor Standards Act’s administrative exemption because they are more appropriately characterized as “production” employees, according to the U.S. Court of Appeals for the...more

DOL Will Issue New Rule To Set Salary For White Collar Exemptions, But Asks Fifth Circuit To Reverse District Court Order Granting...

The government has asked the Fifth Circuit Court of Appeals to reverse a Texas District Court Judge who issued a nationwide preliminary injunction blocking the Department of Labor’s Final Rule which would have more than...more

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