News & Analysis as of

Fair Labor Standards Act Wage and Hour

The Fair Labor Standards Act is a United States federal statute enacted in 1938 to promote fair labor conditions and protect workers from abusive treatment. The primary features of the FLSA address excessive... more +
The Fair Labor Standards Act is a United States federal statute enacted in 1938 to promote fair labor conditions and protect workers from abusive treatment. The primary features of the FLSA address excessive working hours, child labor, unpaid overtime and unsafe working conditions.  less -

Avoid Doubling FLSA Overtime Damages with Proper Analysis and Documentation

Benjamin Franklin once advised that an ounce of prevention is worth a pound of cure. This axiom is still relevant today, especially in the context of the Fair Labor Standards Act (FLSA). As originally written, the FLSA...more

Use of Fluctuating Work Week Method To Pay Overtime Must Have A Fixed Salary As The Foundation

by Fox Rothschild LLP on

A class of equipment operators and trainees has asked a federal court to approve a $1.35 million settlement of their FLSA class action lawsuit alleging the Company did not fairly pay them their wages and used a gimmick to...more

Toll Road Ahead: Fourth Circuit Rules Mixed-Fleet Interstate Truck Drivers May Be Entitled To Overtime Pay

by Jackson Lewis P.C. on

Despite the overtime exemption provided by the Motor Carrier Act, interstate trucking employers who operate “mixed fleets” – those with vehicles both over and under 10,000 pounds – may owe overtime pay to drivers of the...more

New Jersey Proposes to Drastically Restrict the Use of Non-Compete Agreements

Last month, the New Jersey State Senate introduced Senate Bill 3518 (the “Bill”), which, if passed, will severely restrict the use and enforceability of employee non-compete agreements in the state of New Jersey. Most...more

Fourth Circuit Says Mixed-Fleet Drivers Entitled to Overtime

Under the Fair Labor Standards Act, certain drivers of commercial vehicles in interstate commerce are exempt from the law’s overtime provisions. In 2008, Congress amended the FLSA to apply the overtime requirement to drivers...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

Extra Credit: Franchise Restaurant Workers Clear Path To Massive Payout On Technicality Under New York Law

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Tipped workers who didn’t receive notice of the tip credit get a win under New York state minimum wage law in a case that echoes technical traps we have seen in FLSA decisions. ...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

9th Circuit’s Xerox Decision Copies Sister Circuits In Affirming Workweek Standard For FLSA Compliance

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The Ninth Circuit recently joined the Second, Fourth, Eighth, and D.C. Circuits in holding that the relevant unit for determining minimum-wage compliance under the FLSA is the workweek as a whole, rather...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

Are Underwriters Exempt From Overtime Requirements? Supreme Court Leaves Question Open

by Faegre Baker Daniels on

Are underwriters exempt from the Fair Labor Standards Act’s (FLSA) overtime requirements? Financial services companies may assume so. But a recent Ninth Circuit decision—along with the Supreme Court’s refusal on November 27...more

United States Judicial Panel on Multidistrict Litigation: November Meeting Overview

The next hearing session of the United States Judicial Panel on Multidistrict Litigation is scheduled for November 30, 2017 in St. Louis, Missouri. Eight matters are set for oral argument to consider motions to transfer each...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

Staffing Firms Benefit From Sixth Circuit Administrative Exemption Ruling

by Jackson Lewis P.C. on

Staffing firms may have something extra to be thankful for this holiday season: Finding that certain account managers exercised discretion and independent judgment when matching candidates with temporary positions, the Sixth...more

Ninth Circuit Joins Others in Endorsing Hourly Pay Averaging Under FLSA

On November 15, 2017, in a case of first impression in the Ninth Circuit, the Court of Appeals adopted the longstanding position of sister circuits and the U.S. Department of Labor that for purposes of determining whether an...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

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