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
Are Your Account Managers Properly Classified as Exempt Under the FLSA?
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?
Paying Employees for Travel Time on A Partial Telework Day? The U.S. Department of Labor Weighs in…
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…
New York Court Vacates Portion of DOL’s Joint Employer Rule
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
DOL Provides COVID-19-Related Guidance on FLSA, FMLA and FFCRA
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
Salary Add-Ons Do Not Bar Fluctuating Workweek Overtime, U.S. DOL Rules
Bonuses, shift differentials, hazard pay, commissions and other add-ons do not preclude use of the fluctuating workweek method of computing overtime, according to a U.S. Department of Labor interpretive regulation issued May 20, 2020.
Continue Reading Salary Add-Ons Do Not Bar Fluctuating Workweek Overtime, U.S. DOL Rules
DOL Streamlines Its Regulation Interpreting Commission Sales Exemption from Overtime
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
IRS Identifies What Documentation Can Be Required by Employers for FFCRA Leave, and Much More on Tax Credits
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
Wait – the DOL Made Their FFCRA Guidance LESS Useful?!!
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?!!
DOL Issues Final Joint Employer Rule, Making Such Findings Less Likely
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