News & Analysis as of

Wage and Hour Fair Labor Standards Act

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

New York’s Highest Court: Pre-Certification Settlements Require Classwide Notice

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The New York Court of Appeals holds that the state’s class action rules require notice of settlements to be sent to putative class members – even though no class has been certified....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

FLSA Wage & Hour Claims Can Be Subject to Arbitration

by Shipman & Goodwin LLP on

There is news in the employment law world beyond sexual harassment. Arbitration clauses to be exact. Yesterday, the Second Circuit issued a small, but important decision for employers that will continue to limit FLSA wage...more

Second Circuit Affirms Summary Judgment in Putative Internship Class

by BakerHostetler on

Four years ago, a wave of cases involving unpaid internships looked to be the next “big thing.” As those cases sputtered, however, and employers reduced or eliminated internships, the flood of anticipated litigation never...more

Unpaid Disciplinary Suspensions Require a Careful Reading of Federal and State Law

Counseling and written warnings are common steps employers take to address employee attendance issues (such as habitual tardiness) or performance issues (such as failing to complete assigned work on time). But what if the...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

Interns Flunk The Class

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The Second Circuit has upheld summary judgment against magazine interns seeking payment as “employees” under the FLSA. In an end-of-semester decision that may represent the final grade for unpaid interns...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

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

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