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Most States Let Employers Recoup Wage Overpayments Without Employee Authorization

Mistakes happen, even with sophisticated corporate payroll systems. This can involve duplicate wage payments, paying an employee for unpaid time away from work, or other genuine errors. ...more

Commission Plans Should Address Salespersons' Departure

When a commissioned salesperson leaves employment, the most common dispute we encounter involves that employee’s entitlement to payment of commissions after their departure date. ...more

DOL Announces Abandonment of Independent Contractor Rule

In 2024, the Department of Labor adopted regulations limiting the definition of independent contractors exempt from the provisions of the Fair Labor Standards Act’s overtime and minimum wage requirements....more

Employer Liable for Unpaid Breaks Where Deduction Policy Was Never Clearly Explained

The Fair Labor Standards Act allows employers to provide unpaid meal breaks to non-exempt employees if those breaks are of a sufficient length and if employees are relieved of their duties during such breaks....more

Reminder: Employers in North Carolina Must Give Advance Notice of One Pay Period for Salary Decreases

In several recent situations, we discovered that North Carolina employers implemented cuts in employee pay due to demotions or other business reasons without complying with state law notice requirements. ...more

Fifth Circuit Declines Reconsideration of FLSA Salary Rule Decision

Last year in a rare victory for the Department of Labor, the Fifth Circuit Court of Appeals rejected a claim by a Dairy Queen franchisee that the Fair Labor Standards Act prohibits DOL from establishing any minimum salary for...more

Third Circuit Upholds Verdict Against Home Health Agency Based on Employee Travel Time During Working Day

For most non-exempt employees, the Fair Labor Standards Act considers time spent traveling during the working day to be compensable working time. Last week, the Third Circuit Court of Appeals applied this principle to travel...more

Supreme Court Lets Federal Contractor Minimum Wage Hike Stand

Last week, the U.S. Supreme Court declined to hear an appeal of a Tenth Circuit Court of Appeals decision upholding former President Joe Biden’s executive order increasing the minimum wage applicable to employees of certain...more

DOL Proposes Eliminating Special Minimum Wage for Disabled Workers

On Monday, the federal Department of Labor announced a proposed rule that eliminates a special subminimum wage for certain employees with disabilities under the Fair Labor Standards Act....more

Federal Court Blocks Labor Department's Rule on New FLSA Overtime Exemption Salary Level

Last Friday, a federal district court in Texas issued a decision blocking both rounds of increases in the minimum salary required to claim the overtime exemption for executive, administrative, and professional employees under...more

Employees Must Be Relieved of Duties to Exclude Meal and Break Times From Pay

With the January 1 pending increase to the minimum salary required to claim exemption from the Fair Labor Standards Act’s overtime provisions, many employers are facing the need to reclassify as non-exempt workers who will...more

FLSA Requires Pay for Commuting Time to and From Overnight Worksite

The Fair Labor Standards Act contains complex rules for determining whether non-exempt employee travel is compensable working time. In most circumstances, time spent commuting to and from work is not considered FLSA working...more

Upcoming FLSA Salary Increase Presents Options for Employers

Unless blocked by federal courts, on January 1 the minimum salary required to claim the white-collar exemptions from the Fair Labor Standards Act’s overtime provisions increases to $1,128 per week, or $58,656 annually....more

Fifth Circuit Rejects Challenge to Labor Department's Use of FLSA Salary Test

Employers have been following legal challenges to the U.S. Department of Labor’s second round of increases to the minimum salary that must be paid to meet the requirements of the Fair Labor Standards Act’s white collar...more

Fifth Circuit Considers Whether Labor Department Has Authority to Require Minimum Salary for Exemptions

The Department of Labor’s decision to significantly increase the minimum salary required to claim the so-called white-collar exemptions from federal overtime requirements has prompted legal challenges from employers. ...more

First Circuit Reminds Employers That Inside Sales Positions Are Non-Exempt

We frequently encounter situations where employers classify their salesforce that primarily sells through telephone and internet means as salaried exempt employees, primarily for purposes of overtime and minimum wage payment...more

Third Circuit Sets Test for Wage Payment to College Athletes

In its Alston decision in 2021, the U.S. Supreme Court ended the legal assumption that NCAA athletes were pure amateurs, exempt from a range of legal protections extended to workers. Since that decision, courts have faced a...more

Time Management Policies Can Mitigate New Overtime Obligations

The first round of increases to minimum salaries required to claim the Fair Labor Standards Act’s white-collar overtime exemptions took effect July 1. Unless blocked by federal courts, the second, larger increase in the...more

Federal Court Denies Injunction Against New FLSA Overtime Exemption Salary Level

On Monday, a federal district court in Texas denied a request for a temporary injunction that would have prevented the Department of Labor’s increase in the minimum salary from taking effect for certain employees. The DOL’s...more

On-Call Time Not Compensable if Employee Not Restricted

In the days before cellphones, employees required to remain on-call for work were generally entitled to compensation for time spent at home waiting for the landline to ring. Given the ubiquity of mobile communication...more

Guarantee of Fraction of Total Compensation Does Not Meet FLSA Salary Requirements

In order to claim overtime exempt status under the Fair Labor Standards Act’s white-collar exemptions, the position in question must meet both the duties and salary tests set forth under Department of Labor regulations. The...more

Employees Not Automatically Entitled to Attorneys' Fees Under North Carolina Wage and Hour Act

When litigating claims under the federal Fair Labor Standards Act (FLSA), litigants are aware of long-standing case law that essentially awards a prevailing plaintiff with their attorneys’ fees absent extraordinary...more

New FLSA Salary Levels Unchanged for Computer Professionals

Last month to much fanfare, the Department of Labor’s Wage and Hour Division announced significant increases to the minimum salaries needed to claim the Fair Labor Standards Act’s so-called white collar exemptions found at 29...more

Eleventh Circuit Confirms That Service Charges Are Not FLSA Tips

The tip wars between hospitality employers and employees continue unabated. Numerous lawsuits contend that restaurants and other employers wrongfully retain or require sharing of customer gratuities, as well as violate Fair...more

Basing Salary on Prior Pay Risks Discrimination Claim

In recent years, a number of states and municipalities have adopted measures that restrict employers’ ability to base a new hire’s starting salary on what they made in their prior job. In the past, it was common for...more

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