DOL Issues Opinion Letters Providing Guidance on Nondiscretionary Lump Sum Bonuses and Per-Project Payments

 

Priya, Amin - 300dpi
Priya Amin

Executive Summary: The U.S. Department of Labor (DOL) issued two Fair Labor Standards Act (FLSA) opinion letters on January 7, 2020, addressing questions regarding overtime calculation for nondiscretionary lump sum bonuses and per-project payments under the salary basis test. In the first opinion letter, the DOL ultimately stated that the appropriate method for calculating overtime pay on nondiscretionary lump sum bonus earnings that cannot be identified with particular workweeks is allocating the bonus equally to each workweek. In the second opinion letter, the DOL concluded that a “per-project” payment may satisfy the salary basis test, even in situations where the employee is earning “extra compensation” working on additional projects. Continue reading

Employers Should be Prepared for the Challenges of the 2019 Hurricane Season

Executive Summary: As Hurricane Dorian, the first hurricane of the 2019 Atlantic season, bears down on Florida, the approaching storm serves as a reminder that employers should be prepared to address storm-related issues if they are required to close their businesses and as they prepare to resume normal operations. For example, employers need to determine whether closing the office means having to pay workers who stay home, being on the hook for unemployment compensation, and whether workers’ compensation applies to weather-related injuries. Continue reading

What Issues May Employers Be Required to Address as Hurricane Florence Threatens?

florenceExecutive Summary: As the East Coast of the U.S. braces for Hurricane Florence, the approaching storm serves as a reminder that employers should be prepared to address storm-related issues if they are required to close their businesses and as they prepare to resume normal operations. For example, employers need to determine whether closing the office means having to pay workers who stay home, being on the hook for unemployment compensation, and whether workers’ compensation applies to weather-related injuries. Continue reading

New Year – New Wage Hour Opinions (Sort Of)

Executive Summary: In a change from the prior administration, the U.S. Department of Labor (DOL) on Friday reinstated nearly 20 “opinion letters” previously published under the Bush administration, but withdrawn prior to implementation by the Obama administration. The U.S. DOL also issued field bulletins providing new guidance on enforcement positions. The reissued letters predominately focus on specific industries; however, three of opinions generally apply to all employers. Below is a brief summary of each opinion. Should you wish to discuss these in greater detail, please contact Salvador Simao at ssimao@fordharrison.com.

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