In 2016, the U.S. Department of Labor (“DOL”) modified 29 C.F.R. § 541 – which regulates the Fair Labor Standards Act’s (“FLSA”) white-collar exemptions (administrative, executive, professional, computer, and outside sales) – often referred to as the “Overtime Rule.” Among other changes, the new Overtime Rule increased the salary threshold for white-collar employees from $23,660 to $47,476. Before the new Overtime Rule took effect, Judge Amos Mazzant, a federal district judge in Texas, temporarily blocked the rule by entering an injunction in Nevada v. United States Dep’t of Labor, 227 F. Supp. 3d 696 (E.D. Tex. 2017). Rather than appeal Judge Mazzant’s decision and pursue implementation of the revised 2016 rule, the DOL elected, instead, to proceed with a new rulemaking. Continue reading
Background: The Fair Labor Standards Act (“FLSA”) and Florida minimum wage law allow an employer to take a tip credit toward its minimum wage obligation for “tipped employees”. A “tipped employee” is an employee who customarily and regularly receives more than $30 per month in tips. 29 U.S.C. § 203(t). An employer is permitted to take a tip credit equal to the difference between the minimum wage (currently $8.25 in Florida) and the required cash wage (currently must be at least $5.23 in Florida). Thus, the maximum tip credit that an employer can currently claim under the FLSA and Florida law is $3.02 per hour ($8.25 – $5.23). Continue reading
Executive Summary: Last week, on August 28, 2018, the U.S. Department of Labor (DOL) issued four Fair Labor Standards Act (FLSA) opinion letters. In welcome late-summer news to employers, each opinion is employer-friendly. Below is a summary of each. Continue reading
The U.S. Department of Labor’s (“DOL”) “80/20 Rule” has caused significant anxiety and concern for employers in the restaurant industry and other industries with tipped employees. A recent spate of nation-wide class action litigation is leading to record-setting settlements for restaurant employers. However, in a recent lawsuit filed in the Western District of Texas, Restaurant Law Center, et al. v. United States Department of Labor, 18-cv-567 (W.D.Tex.), national and local restaurant groups hope to bring an end to this wave of litigation by seeking to invalidate the 80/20 Rule. Continue reading
Executive Summary: On July 13, 2018, the United States Department of Labor (“DOL”) issued a Field Assistance Bulletin (“FAB”) aimed at clarifying the standard utilized to determine if home care workers qualify as employees or joint employees under the Fair Labor Standards Act (“FLSA”). Over the past few years, the DOL has issued and then withdrawn guidance regarding the proper standard and evaluation of home worker classification, leaving uncertainty for the industry. The new guidance provides clarity on the subject and provides home care registries a road map for proper classification.