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?

In response to the COVID-19 pandemic, employers have implemented flexible work schedules for a litany of reasons including, for example, to limit the number of employees in the office at any given time, to allow employees to obtain medical care for themselves and their family members, and simply to give employees the opportunity to handle the new, daily challenges brought about by this pandemic.  As a result, many employees find themselves splitting their time between working from home and working from the office – sometimes on alternating days, and sometimes in the course of a single day.  This practice, which is by no means new, but has certainly become more prevalent over the past year, raises the question as to whether travel time on a partial telework day is compensable under the Fair Labor Standards Act (“FLSA”).

Continue Reading Paying Employees for Travel Time on A Partial Telework Day?  The U.S. Department of Labor Weighs in…

On September 8, 2020, U.S. District Court Judge Gregory Woods of the Southern District of New York, issued a Memorandum Opinion and Order vacating various portions of the Department of Labor’s (“DOL”) Final Rule regarding the definition of joint employment under the Fair Labor Standards Act (“FLSA”).  Judge Woods found that the Final Rule violated the Administrative Procedures Act (“APA”) because it was (1) arbitrary and capricious, and (2) not in accordance with law.

Continue Reading New York Court Vacates Portion of DOL’s Joint Employer Rule

On July 20, 2020, the U.S. Department of Labor issued additional Q&A resources to provide guidance to employers on COVID-19-related issues under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Families First Coronavirus Response Act (FFCRA). While much of the guidance reiterates general principles under each of these laws, they offer some interesting insights on a few issues specific to COVID-19.


Continue Reading DOL Provides COVID-19-Related Guidance on FLSA, FMLA and FFCRA

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

The Families First Coronavirus Response Act mandates that private employers with 500 or fewer employees (with exceptions for certain small employers as well as health care providers and emergency responders) and some public sector employers must provide emergency paid sick leave and emergency Family and Medical Leave Act leave for specific COVID-related reasons. The Act, however, did not address what documentation, if any, an employer could request in order to substantiate the leave and receive the tax credits that will fund the leave. The DOL initially provided guidance in its Families First Coronavirus Response Act: Questions and Answers, but subsequently retracted it, directing employers to the Internal Revenue Service for further guidance. And on the eve of the FFCRA’s effective date of April 1, 2020, the IRS finally provided such guidance.

Continue Reading IRS Identifies What Documentation Can Be Required by Employers for FFCRA Leave, and Much More on Tax Credits

I don’t like it when the federal agencies don’t play fair. I previously blogged about the EEOC’s sneaky change in its position on whether sexual orientation discrimination is covered by Title VII (it revised its guidance without any kind of announcement. It was just suddenly… the exact opposite). And now, the Department of Labor has pulled the same trick with regard to its guidance on the Families First Coronavirus Response Act!

Continue Reading Wait – the DOL Made Their FFCRA Guidance LESS Useful?!!

The Department of Labor has issued its Final Rule explaining when separate companies will be deemed joint employers of a single employee under the Fair Labor Standards Act. In so doing, the DOL has made findings of joint employer status to be less likely, including in franchise situations.

Continue Reading DOL Issues Final Joint Employer Rule, Making Such Findings Less Likely

As of January 1, 2020, employers need to ensure that employees classified as “exempt” from overtime requirements are being paid the required salary.  Pursuant to the U.S. Department of Labor’s final rule, the minimum salary for executive, professional, and administrative employees has increased.  As we reported in our September 24, 2019 E-Lert, the new rule increases the salary required to meet the exemptions to $684 per week (the equivalent of $35,568 per year).  The required compensation for highly compensated employees is raised to $107,432.  Our E-Lert provides further details about the new rule.  If you need assistance determining whether your employees meet the exemptions under the Fair Labor Standards Act, please contact any Shawe Rosenthal attorney.
Continue Reading Changes to Wage and Hour Law Took Effect January 1, 2020