News & Analysis as of

The United States Department of Labor Fair Labor Standards Act

The United States Department of Labor is a federal executive department established in 1913 and headed by the Secretary of Labor. The Department's mission is to promote workers's general welfare and... more +
The United States Department of Labor is a federal executive department established in 1913 and headed by the Secretary of Labor. The Department's mission is to promote workers's general welfare and improve working conditions. less -

The DOL Serves Up a Major Overhaul of its Tip-Sharing Regulations

by BakerHostetler on

Citing a “significant amount of private litigation,” recent changes in state wage laws, and “independent and serious concerns” of public policy, the U.S. Department of Labor (DOL) is proposing to rescind an Obama-era rule...more

Department of Labor Moves One Step Closer to Allowing Employers More Flexibility in Their Tip Pooling Practices

by Nexsen Pruet, PLLC on

The U.S. Department of Labor (DOL) published a notice of proposed rulemaking (NPRM) in the December 5, 2017 edition of the Federal Register, with a proposal to rescind its 2011 regulations on tip pooling. The NPRM appears to...more

Exempt Employee Pay Minimums Will Increase in 2018 in Various States

by Littler on

As employers wait to see whether – and to what extent – the U.S. Department of Labor will revise the minimum amount they must pay to executive, administrative, and professionals for exemption from the Fair Labor Standards...more

Beltway Buzz - December, 2017 #2

Another hectic week here in D.C. has us feeling like we’re living in a glass case of emotion. Here’s why...more

DOL’s Tip of the Hat to Back-of-the-House Employees: New NPRM to Rescind 2011 Regs

In response to significant pressure from the hospitality industry—specifically, the restaurant industry—as well as increasing litigation and changes to reduce or eliminate the use of tip credits at the state level, the U.S....more

DOL Proposes Repeal of Obama-Era Tip Credit Rule

Last week, the federal Department of Labor’s Wage and Hour Division proposed repealing a controversial regulation affecting employers in the hospitality industry. The regulation interpreted a provision of the Fair Labor...more

Explanation of the DOL's Proposed Rules on Tips

by Franczek Radelet P.C. on

There’s been plenty of press regarding the U.S. Department of Labor’s proposed rules governing employer treatment of tips. Commentators are debating whether the proposed changes are a sensible return to the four corners of...more

DOL's Proposed Rule Change to Give Employers Increased Flexibility to Distribute or Retain Tips from Employees Earning the Full...

by FordHarrison on

On December 5, 2017, the U.S. Department of Labor (DOL) published its Notice of Proposed Rulemaking (NPRM) to reverse the Obama Administration’s tip rule prohibiting the distribution of tips to anyone other than the...more

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

by Jackson Lewis P.C. on

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

USDOL Seeks To Narrow Tip-Retention Prohibition

by Fisher Phillips on

We have previously written about the U.S. Department of Labor's position adopted in 2011 saying that an employer may not retain any of an employee's tips even if management: • Takes no tip-credit under the federal Fair...more

DOL Issues Proposed Rule to Rescind 2011 Regulations that Impose Tip-Sharing Restrictions on Employers that Pay the Full Federal...

by Littler on

The U.S. Department of Labor (DOL) has issued a proposed rule to rescind the Department’s position that employers must comply with tip-pooling requirements even when paying the full minimum wage. ...more

The DOL Proposes to Cut Tip-Pooling Restrictions

by Ballard Spahr LLP on

The U.S. Department of Labor (DOL) is proposing new rules that would provide some employers with more flexibility to count tips toward the federal minimum wage—particularly important for hospitality industry businesses such...more

Tip-Pooling Expansion on the Horizon

The U.S. Department of Labor (DOL) has proposed to roll back regulations enacted in 2011 that limited tip-pooling arrangements under the Fair Labor Standards Act (FLSA). The proposed rule was published December 5 in the...more

DOL Issues Proposed Rule to Rescind 2011 Regulations that Impose Tip-Sharing Restrictions on Employers that Pay the Full Federal...

by Littler on

The U.S. Department of Labor (DOL) has issued a proposed rule to rescind the Department’s position that employers must comply with tip-pooling requirements even when paying the full minimum wage. ...more

Department Of Labor’s Wage And Hour Division Proposes To Nix Unpopular Tip Pooling Rule

by Seyfarth Shaw LLP on

Seyfarth Synopsis: On Monday, the DOL issued a Notice of Proposed Rulemaking announcing rescission of a rule that regulates tip pooling by employers who do not take the tip credit. The DOL has issued a Notice of Proposed...more

DOL Proposing New Tip Credit Regulations

by Sherman & Howard L.L.C. on

On December 4, 2017, the U. S. Department of Labor (“DOL”) issued a Notice of Proposed Rulemaking regarding the tip credit regulations under the Fair Labor Standards Act. The proposed new regulation will be published today,...more

Tipping Point Of Confusion: Contradictions Abound In Tip Credit Rules

by Fisher Phillips on

Legal issues surrounding tip credits have been in the spotlight throughout much of 2017, from significant court decisions to announcements by the U.S. Department of Labor (USDOL). But rather than setting forth clear rules,...more

Nonprofits Can Avoid Overtime Requirements If They Avoid 'Enterprise' Status

Last year’s proposal to increase the minimum salary to qualify for exemption from federal overtime requirements hit nonprofit employers particularly hard. While the new salary levels never went into effect, many nonprofits...more

How Is 2017 Like 1947?

by Fisher Phillips on

Once upon a time, a seriously-alarmed legislature grew concerned that wage-hour claims and litigation had gotten out-of-hand. A series of court decisions had, among other things, broadly expanded the scope of what counted...more

Case Interpreting FLSA Highly Compensated Exemption Takes Interesting Slant

by Fox Rothschild LLP on

There has not been much litigation over the HCE, the so-called Highly Compensated Employee exemption under the FLSA. Recently, an interesting case explored the issue of whether commission payments can form the entirety of the...more

Sixth Circuit Provides Clarification On Legality Of Draw-On-Commission Policy

Last month, the Sixth Circuit revived a lawsuit brought under the Fair Labor Standards Act (“FLSA”) alleging that a retailer’s commission policy was unlawful in Stein v. hhgregg, Inc., 2017 U.S. App. LEXIS 19908 (6th Cir....more

Overtime Claim Against Chipotle Stayed Until Contempt Motion Is Heard

As previously reported in EmployNews, in December a creative group of plaintiffs’ lawyers filed suit against Chipotle in federal district court in New Jersey. The lawyers contended that despite a Texas federal court’s...more

Ninth Circuit Agrees Minimum Wage Compliance Is Determined on Workweek Basis

The Fair Labor Standards Act requires that employees be paid a minimum wage of $7.25 per hour. In Douglas v. Xerox Business Services, LLC, the plaintiffs challenged Xerox’s variable pay system as violating these requirements....more

Ninth Circuit Concurs That Workweek, Not Individual Hour, Is Relevant Timeframe For Determination Of Minimum Wage Compliance

by Jackson Lewis P.C. on

In an issue of first impression, the Ninth Circuit joined the Second, Fourth, Eighth and D.C. Circuits (and the position adopted by the Department of Labor) that, in determining whether an employer has complied with the...more

Salary-Threshold Autopilot Still Possible

by Fisher Phillips on

A BloombergBNA report suggests that the U.S. Department of Labor is seriously considering retaining the Obama Administration's procedure (or something like it) for automatic "updates" to the compensation thresholds specified...more

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