News & Analysis as of

Misclassification Employer Liability Issues Fair Labor Standards Act (FLSA)

Fisher Phillips

The Tech Employer’s Guide to FLSA Exemptions + Your Compliance Action Plan

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Tech employers have a wide range of workers, which increases the risk of misclassifying employees as exempt from overtime pay. Since violations of the Fair Labor Standards Act (FLSA) can result in significant penalties and...more

Keating Muething & Klekamp PLL

The Independent Contractor Tug-of-War: Navigating the Latest DOL Shifts

Classifying a worker as an independent contractor rather than an employee can be one of the more complicated—and risky—decisions an employer can make, as misclassification can lead to serious legal and financial consequences....more

Fisher Phillips

DOL Easing Up on Independent Contractor Misclassification Enforcement: 3 Key Points on This Big Win for Businesses

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Businesses that rely on freelancers or the “gig economy” have cause for optimism now that the Department of Labor just announced it will no longer enforce a Biden-era final rule that made it harder to classify workers as...more

Ice Miller

The Highly Compensated Employee Exemption Under the FLSA - Misclassification of Highly Compensated Employees Can be Costly

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Classification of employees under the Fair Labor Standards Act (FLSA) remains a high-risk area where employers can easily misstep, potentially incurring thousands of dollars in overtime pay, liquidated damages, attorneys...more

Troutman Pepper Locke

Travel Industry Exposed to Independent Contractor Misclassification Claims: February 2025 IC Legal News Update

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Few industries are immune from class actions alleging IC misclassification of workers paid on a 1099 basis. One industry that has not yet been besieged by these types of lawsuits is travel, but that may be changing. ...more

DarrowEverett LLP

Seventh Circuit Decision Clarifies Standards for FLSA Overtime Cases

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The Seventh Circuit Court of Appeals recently clarified the evidentiary bar for employees bringing Fair Labor Standards Act (FLSA) overtime claims, requiring employees to provide specific, detailed evidence of their work...more

Fisher Phillips

The Auto Dealer’s Guide to FLSA Exemptions: An Inventory of Commonly Used Categories + Your Maintenance Plan to Stay Compliant

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Auto dealerships employ a wide range of workers and often maintain a variety of complex pay plans, which can make compliance with federal wage and overtime rules extra challenging. Since violations of the Fair Labor Standards...more

FordHarrison

Virginia Legislature Poised to Significantly Increase Employer Exposure for Wage and Discrimination Claims

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The Virginia General Assembly is currently considering new legislation with substantial impact on Virginia businesses.  Two of these new bills are House Bill 2561 and Senate Bill 1052....more

Holland & Hart LLP

Supreme Court Clarifies Burden of Proof for Employers in FLSA Exemption Cases

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Employers facing lawsuits or government investigations under the federal Fair Labor Standards Act (FLSA) must demonstrate that certain employees are exempt from the law’s requirements for minimum wage and overtime pay....more

Ballard Spahr LLP

The Supreme Court Clarifies That the Preponderance Standard Applies to FLSA Exemption Cases

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Employers confronted with individual or class action lawsuits or government investigations under the federal Fair Labor Standards Act (“FLSA”) have the burden to prove that employees are exempt from the law’s minimum wage and...more

Lowndes

U.S. Supreme Court Rejects Higher Standard of Proof for Overtime Exemptions

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In a win for employers, the U.S. Supreme Court ruled this week in E.M.D. Sales, Inc. v. Carrera that employers need only prove an exemption from overtime under the Fair Labor Standards Act (FLSA) by a “preponderance of the...more

Fisher Phillips

SCOTUS Delivers Win to Employers in Overtime Exemption Cases by Rejecting Higher Standard of Proof: Key Takeaways

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The Supreme Court just handed businesses a win when it weighed in on how much evidence an employer needs to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay. As we correctly...more

Jaburg Wilk

Arizona Minimum Wage Increases on January 1, 2025

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The Arizona minimum wage increased from $14.35 per hour to $14.70 per hour. The latest increase will take effect on January 1, 2025, and will remain in effect until December 31, 2025. This means that Arizona employers will...more

Fisher Phillips

Wage and Hour Officials Focus on Healthcare Employers in Southeastern U.S. – 5 Tips to Avoid Trouble

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Federal wage and hour officials have trained their attention on healthcare employers in the Southeastern United States – and we expect this scrutiny to continue into the new year. The past year alone saw the Department of...more

Troutman Pepper Locke

Federal Government Study Shows Independent Contractor Working Arrangement Steadily ‎Increasing: November 2024 IC Legal News Update

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The most compelling news involving independent contractor compliance and misclassification last month was not a class action lawsuit or a government investigation but rather a government study released by the Bureau of Labor...more

Fisher Phillips

SCOTUS Predictions: Justices Will Hand Win to Employers By Rejecting Higher Standard of Proof in Overtime Exemption Cases

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What evidence does an employer need to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay? The Supreme Court recently heard oral arguments in a case raising this question and...more

Bradley Arant Boult Cummings LLP

That’s [Mis]Classified: What Employers Must Prove to Claim an FLSA Overtime Exemption

By now, everyone has heard about the Texas court putting the kibosh on the new salary exempt thresholds. In other exemption classification news, the United States Supreme Court is set to issue an opinion in early 2025...more

Fisher Phillips

Labor Department to Crack Down on These 7 Workplace Contract Provisions

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The Labor Department’s top lawyer announced on Tuesday that the agency would target seven specific employment-related contract provisions that she believes could discourage workers from exercising their rights under federal...more

Fisher Phillips

Nursing Facilities Ordered to Pay $36M in Overtime Suit: 9 Wage and Hour Tips for Healthcare Employers

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A group of nursing facilities in Pennsylvania was recently ordered to pay a whopping $36 million in overtime pay and damages to workers who claimed their employers deliberately paid them less than they actually earned. After...more

Parker Poe Adams & Bernstein LLP

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

Troutman Pepper Locke

Customer Service Companies Using Independent Contractor Business Model Risk ‎Misclassification Liability: July 2024 IC Legal News...

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Last month, two key legal developments in the area of independent contractor misclassification and compliance highlighted the risks posed to customer service companies that use an independent contractor business model. The...more

Troutman Pepper Locke

Jurors Disagree on Whether Ride Share Drivers Are Independent Contractors or ‎Employees: June 2024 IC Legal News Update ‎

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Lawyers representing ride share drivers have argued for years that their clients are being misclassified as independent contractors under federal and state laws. They have attained little success, however, obtaining...more

ArentFox Schiff

Top 10 Legal Challenges for Employers

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With 2024 underway, we highlight some of the most pressing legal issues facing employers this year, including increased regulation of noncompetition agreements, new paid family and medical leave laws, a new Overtime Rule, and...more

Cranfill Sumner LLP

Exception for “Transportation Workers” Under the Federal Arbitration Act Grows Larger

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The courts will generally enforce employee arbitration agreements via the Federal Arbitration Act (“FAA”). However, a “transportation workers” exemption exists under the FAA. On April 12, 2024, the United States Supreme Court...more

Brownstein Hyatt Farber Schreck

Employer Whiplash: Federal Agencies Flip-Flop on Two Federal Employment Rules

While federal regulations and rules shift under new administrations frequently, recent events related to two important employment rules mean they revert to prior versions, potentially exposing employers to legal liability if...more

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