In 2016, as employers scrambled to prepare to comply with the U.S. Department of Labor’s (“DOL”) “final rule,” which more than doubled the minimum salary threshold needed to meet the “white collar” exemptions by, the U.S. Court of Appeals for the Fifth Circuit issued an injunction blocking it. Now, the DOL is expected to issue a new Notice of Proposed Rulemaking—possibly this month—increasing the salary threshold for these exemptions. Continue reading
February has been a busy month for the U.S. Department of Labor (“DOL”). The Wage and Hour Division (“WHD”) published new guidance addressing tipped employees and payment of subminimum wages and released a new compliance tool. The DOL also named a new Acting Wage and Hour Administrator. Employers should review these new publications and developments for applicability to their workforce: Continue reading
Last week, many insurance carriers breathed a sigh of relief when the Sixth Circuit Court of Appeals held that more than 700 American Family Life Insurance agents were properly classified as independent contractors, not employees. The case is Jammal v. American Family Life Insurance Company, 2019 U.S. App. LEXIS 2905. Continue reading
The U.S. Department of Labor’s Wage and Hour Division (“DOL”) is currently conducting a survey seeking information from employers on wages paid to construction workers in 46 metropolitan North Carolina counties on all active building projects. The DOL is seeking this information to establish prevailing wage rates required under the Davis-Bacon and Related Acts (“DBRA”). Continue reading
On November 8, 2018, the U.S. Department of Labor (DOL) re-issued an opinion letter abandoning the “80/20 Rule,” which prohibited employers from taking a tip credit if a tipped employee spent more than 20% of his or her working time on non-tipped work.
The opinion letter is a re-issuance of one previously published on January 16, 2009 by the Bush administration. The letter, however, was withdrawn once President Obama took office. The DOL’s new guidance provides restaurant and hospitality employers with clarity and a more practical approach defining when a tip credit can be taken. Continue reading
Executive Summary: The Fair Labor Standards Act (“FLSA”) requires a covered employer to maintain and preserve certain records for different classifications of employees. See 29 CFR § 516. Many states have similar record keeping requirements. Notwithstanding these statutory record keeping requirements, an employer in compliance can still be subject to sanctions for failure to preserve documents relevant to an employee’s wage and hour claim. Continue reading