News & Analysis as of

Wage Deductions Fair Labor Standards Act (FLSA)

Constangy, Brooks, Smith & Prophete, LLP

Auto-deductions for meal breaks. Game winner for employers, or loser?

It’s the fourth quarter. Three seconds are left on the clock, and your team is losing by one point. Your place kicker confidently trots onto the field to attempt the game-winning field goal. As he does, the TV announcer says,...more

Fox Rothschild LLP

Smart Employees Use Their Vacation Time: Third Circuit Holds PTO Is Not Part Of Exempt Employees’ Salaries Under the FLSA

Fox Rothschild LLP on

In a boon for employers with exempt employees, the Third Circuit held earlier this year as an issue of first impression that paid time off (PTO) is not part of an exempt employee’s salary under the federal Fair Labor...more

Littler

Third Circuit Finds Deductions from Accrued PTO Do Not Violate Salary Basis Requirement for Exempt Employees

Littler on

The Third Circuit recently highlighted the flexibility afforded to employers when providing fringe benefits to salaried exempt employees. In Higgins v. Bayada Home Health Care Inc., No. 21-3286, 2023 WL 2518345 (3d Cir. Mar....more

Jackson Lewis P.C.

PTO Deductions Are Not “Salary” Under the FLSA, Third Circuit Holds

Jackson Lewis P.C. on

In an issue of first impression, the U.S. Court of Appeals for the Third Circuit held that paid time off (“PTO”) is not a form of salary under the Fair Labor Standards Act (“FLSA”) and, therefore, deductions from a salaried...more

Epstein Becker & Green

Time Is Money: A Quick Wage-Hour Tip on … Permissible Deductions from Exempt Employees’ Pay

Epstein Becker & Green on

Most employers are well aware that employees must be paid on a “salary basis” to be considered exempt from the overtime requirements of the Fair Labor Standards Act (“FLSA”). ...more

Foley & Lardner LLP

Meal Break Abuse – Is It Okay to Dock Pay?

Foley & Lardner LLP on

How many readers have confronted the following scenario: Employer provides a paid meal break to its employees (for ease of application, we are going to suggest the paid meal break is 30 minutes in length); Employees...more

McAfee & Taft

Wage Deduction Agreements and the FLSA

McAfee & Taft on

Many employers require their employees to bear certain employment-related costs. For instance, an employer might require its employees to purchase work uniforms, safety glasses or other items for use in the workplace....more

Foley & Lardner LLP

I Want To Dock My Employee’s Wages Because She Broke Her Laptop – Okay?

Foley & Lardner LLP on

The answer to this question depends – is the employee exempt or non-exempt? And, if non-exempt, will the deduction reduce her compensation below the minimum wage or affect her overtime compensation?...more

Fisher Phillips

Is Payday The New Groundhog Day? What Bill Murray Can Teach Employers About New Pay Apps

Fisher Phillips on

Most are familiar with Bill Murray’s classic comedy, “Groundhog Day,” in which egotistical weatherman Phil Connors repeatedly re-lives the date of February 2, 1993. At first, Connors relishes replicating the same events each...more

Fisher Phillips

Not All Deductions Are "Uniform" Under The FLSA

Fisher Phillips on

The federal Fair Labor Standards Act (FLSA) establishes minimum wage and overtime requirements, period. The FLSA does not explicitly require that employers cover all work-related costs, nor, does it do so by specifically...more

Fisher Phillips

Web Exclusive: January 2018: The Top 18 Labor And Employment Law Stories

Fisher Phillips on

It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there were an unprecedented number of changes each month in 2017—and if January is any...more

Fisher Phillips

"Daily Pay" and Cryptocurrency: Will Advances in Technology Change How Wages Are Paid?

Fisher Phillips on

Technology seems to be advancing faster than we can keep up. These advances impact the employer community as well—even regarding basic things such as how, when, and in what manner wages are paid. Take two recent examples...more

Holland & Knight LLP

A Contractor’s Guide to the Impending Government Shutdown

Holland & Knight LLP on

With less than a day before the federal government's appropriated funding runs out, confidence in avoiding a potential shutdown is waning. Because of that, contractors should exercise prudence and immediately begin...more

Burr & Forman

DOL Reissues 17 Previously Withdrawn Opinion Letters

Burr & Forman on

On January 5, 2018, the Department of Labor (“DOL”) Wage and Hour Division re-issued 17 previously withdrawn DOL Opinion Letters addressing over a dozen topics under the Fair Labor Standards Act (“FLSA”). The DOL originally...more

Dickinson Wright

Keep Rollin’ Rollin’ Rollin’: DOL Reissues 17 Opinion Letters That Had Been Withdrawn Under the Obama Administration

Dickinson Wright on

In late June 2017, the United States Department of Labor (DOL) announced it would be reinstating Opinion Letters issued by its Wage and Hour Division, which was a practice that had ceased back in 2010. This announcement is...more

Fisher Phillips

What Can You Get for $535?

Fisher Phillips on

An expensive lawsuit. Let’s say you have a service advisor who is paid $525 per week, plus commissions. The service advisor makes a blatant and careless mistake on a customer invoice, costing your dealership $535. The...more

Akerman LLP - HR Defense

Steps for Solving the Wage Deduction Dilemma

Figuring out what deductions from an employee’s wages are permitted and prohibited under the law is a quandary. May an employer deduct an employee’s wages for personal charges on the company’s credit card? What about the cost...more

Franczek P.C.

What is the Cost of a Free Lunch? [Wage & Hour FAQ]

Franczek P.C. on

Q. We offer free lunches to our food service employees. Can we count the cost of these lunches as part of our employees' compensation? A. The short answer is yes, but as we all know, there's no such thing as a free...more

Sherman & Howard L.L.C.

Repaid Deduction Saves Day

The Fair Labor Standards Act requires employees to be paid on a salary basis, not hourly, to be exempt under the so-called white collar exemptions, e.g. for executive or administrative employees. ...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Wage Deduction From Final Paycheck Narrowly Allowed By Ninth Circuit

Ward v. Costco Wholesale Corp., No. 11-56757 (January 9, 2014): In a recent unpublished decision, the Ninth Circuit Court of Appeals upheld a trial court’s decision that Costco Wholesale did not violate the Fair Labor...more

Sherman & Howard L.L.C.

Employer’s Final Paycheck Deductions Upheld

The Ninth Circuit just held that an employer is entitled to deduct from an employee’s final paycheck money an employee owes to the employer. Ward v. Costco Wholesale Corp. Costco issued Ms. Ward a company credit card, but...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Applying Wage and Hour Laws to the 21st Century Series: Concerns Involving Exempt Employees

In this, our final post in this blog series on wage and hour issues in the 21st century, we address another frequent area of concern for employers: exempt employees....more

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