With the change in administration, the Department of Labor’s recently-issued Final Rule governing the treatment of tipped employees under the Fair Labor Standards Act was thrown into doubt. Following a formal delay of the Final Rule’s effective date of March 30, 2021, the Biden DOL has now announced that parts of the Final Rule will take effect on April 30, 2021, while other parts will be further delayed and revised, subject to public comment.

Continue Reading The DOL’s Tipped Employee Final Rule: What Is Taking Effect and What Is Not

In its first opinion letter of 2021, the United States Department of Labor (“DOL”) addressed a hot topic that seems to frequently trip up employers: exemption from the minimum wage and overtime pay requirements under the Fair Labor Standards Act (“FLSA”).  The DOL’s opinion letters are official, written opinions by the Department’s Wage and Hour Division that respond to fact-specific scenarios.  In this letter, the DOL considered whether account managers employed by a life science products manufacturer are exempt under the FLSA’s administrative employee exemption.  Although the DOL’s conclusion is limited to the particular set of facts presented, this letter serves as helpful guidance for any employer that employs individuals in an account manager role.

Continue Reading Are Your Account Managers Properly Classified as Exempt Under the FLSA?

On January 6, 2021, the U.S. Department of Labor announced its Final Rule to provide guidance on the determination of whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The Final Rule, which largely adopts the Proposed Rule (discussed in our September E-update), is scheduled to take effect on March 8, 2021 – after the change in administration. These so-called “midnight regulations,” issued during the lame-duck period between the election and the new president’s inauguration, can be placed on hold by the incoming President before they take effect – and President-Elect Biden has already indicated that he will issue an executive order that will halt or delay all such midnight regulations.

Continue Reading DOL’s Final Rule Makes It Easier to Achieve Independent Contractor Status – But Will It Take Effect?

OK, I’m a bit of a nerd about the Family and Medical Leave Act (FMLA) and its regulations. And I would expect the Department of Labor to be the same. After all, they wrote the regulations! But I feel like they might have missed the boat a bit with their recent revisions to the Final Rule implementing the Families First Coronavirus Response Act (FFCRA).

Continue Reading Does the DOL Really Know Its Own FMLA Regulations?

Following last month’s federal court ruling that the U.S. Department of Labor had exceeded its authority under the Families First Coronavirus Response Act (FFCRA) in formulating certain regulatory provisions, the DOL has now issued a revised Final Rule, which becomes effective on September 16, 2020. These revisions do the following: (1) reaffirm the work-availability requirement, (2) reaffirm employer approval of intermittent leave, (3) modify the timing requirement for documentation, and (4) scale back the broad exemption for health care providers. Employers nationwide will need to make adjustments to their FFCRA procedures in accordance with the revised Final Rule.

Continue Reading DOL Revises FFCRA Final Rule: What This Means for Covered Employers

In a decision potentially impacting all employers covered by the Families First Coronavirus Response Act (FFCRA), a federal court upended some of the employer-friendly limitations set forth in the U.S. Department of Labor’s (DOL) implementing regulations (i.e. the “Final Rule”): (1) the work-availability requirement, (2) the broad exemption for health care providers, (3) employer approval of intermittent leave, and (4) the documentation requirement. Below, we first summarize the Court’s decision and then discuss the practical effect of this decision on employers.

Continue Reading Federal Court Vastly Expands FFCRA Paid Leave Mandate – What This Actually Means for Covered Employers

Apparently inspired by the tidying up trend, the Department of Labor threw out two sections of its interpretation concerning the commission sales exemption from overtime that no longer gave it joy.  The commission sales exemption covers sales employees who are primarily paid by commission.  To come under the exemption, the employee must be employed in a “retail or service” establishment, must earn at least 1.5 times the minimum wage, and more than half the employee’s compensation for a representative period (not less than one month) must represent commissions.

Continue Reading DOL Streamlines Its Regulation Interpreting Commission Sales Exemption from Overtime

Various federal agencies have recently issued additional COVID-19 guidance of significance (more or less) to employers, including the Centers for Disease Control and Prevention (CDC), the Occupational Safety and Health Administration (OSHA), the Equal Employment Opportunity Commission (EEOC), the Internal Revenue Service (IRS), the Department of Labor (DOL), and the Federal Emergency Management Administration (FEMA). Some of this guidance applies to workplaces and employers generally, while others target specific industries, such as bars and restaurants, manufacturing, child care, schools, and mass transit. We summarize these developments below.

Continue Reading COVID-19 Agency Update: CDC and OSHA Issue Reopening Guidance, EEOC Explains Accommodation of High-Risk Workers, IRS Expands Employee Retention Credit, DOL Adds to FFCRA Q&As, FEMA Provides Exercise Starter Kit for Reopening