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New FLSA Overtime Regulations Face Legal Challenges

As employers know, the final rule updating the federal overtime regulations was published in May 2016 and is scheduled to take effect December 1, 2016. The biggest impact of the new rules is the huge increase in the minimum salary required to qualify as exempt from overtime under the FLSA’s executive, administrative, and professional exemptions. Under the new rules, the minimum salary to qualify for exempt status is $47,476 (more than double the existing minimum) and is subject to further automatic increase on January 1, 2020 and every three years thereafter. Industry groups have voiced strong opposition to the new rules, prompting members of Congress to introduce legislation seeking to delay implementation of the new rules by six months. The House passed one such bill, HR 6094. A similar bill has been introduced in the Senate. However, President Obama has already vowed to veto these bills should they reach his desk.

Transitioning To The New "Highly Compensated" Threshold

When the revised requirements for the federal Fair Labor Standards Act's "white collar" exemptions take effect on December 1, the total-annual-compensation threshold for the "highly compensated employee" (HCE) versions will increase from $100,000 to $134,004. This raises the question of what actual total annual dollar amount will be necessary for the transition period, that is, for the timeframe in which the change occurs.

Straightening Out the Fluctuating Hour Workweek: Evaluating the Risks and Benefits of One Method of Overtime Payment

With the Department of Labor’s recent changes to the salary threshold for white-collar exemptions set to take effect on December 1, 2016, many employers are struggling to find the best option for how to comply with the new regulations without breaking the bank. One lesser-known alternative that is receiving increased attention from many companies is the fluctuating workweek method of payment for non-exempt employees.

Blocking the New Overtime Salary Threshold? Hearing on Request for an Injunction Scheduled for November

A hearing has been scheduled for November 16, 2016 in a Texas federal court to decide whether an injunction will be issued to block the substantially increased salary threshold to qualify as exempt under the new overtime rule, which is anticipated to take effect on December 1, 2016.

Adapting to the New Department of Labor's Final Rule

The Department of Labor (DOL) Final Rule promulgated new regulations that went into effect on December 1, 2016. All employers need to know how these regulations have changed the test for exemption to understand what they need to do in response. This article will review the basics for the most common exemptions from overtime under Federal law and will also provide an executive summary of the key changes made by the Final Rule.

Court Will Consider States' Request to Pause FLSA Overtime Rule

A federal court on October 17 agreed to hear a motion filed by 21 states asking the court to temporarily suspend upcoming overtime rules from the US Department of Labor (DOL).

New York District Court Decision Provides New Guidance on the Second Circuit's Intern-Employee Test

Executive Summary: A recent Southern District of New York opinion brings clarity to the Second Circuit’s new intern-employee “primary beneficiary” test. The court in Wang v. Hearst Corporation (Aug. 24, 2016), held that unpaid interns working at magazines owned by a media company were not “employees” for purposes of the Fair Labor Standards Act and granted summary judgment in favor of the media company.

Business Groups Ask Court To Expedite Ruling On Overtime Exemption Rules

In our last post we reported that the U.S. Chamber of Commerce and fifty-plus other business groups suing to block the U.S. DOL’s overtime exemption rule from taking effect had not yet moved to expedite the court’s ruling on the case, making it unlikely that the court would issue any sort of ruling before the rules take effect on December 1, 2016. Well, now they have. In a motion for expedited summary judgment filed Friday October 14, the business groups are now asking the court to rule on the merits of their case on the same timetable as is set for its hearing of the motion for preliminary injunction in the parallel lawsuit being pursued by a coalition of 21 states. On Monday, the business groups followed up with a motion asking the court to consolidate their case with the parallel state lawsuit. According to the motion, the states and the DOL do not oppose consolidating the cases.

States Seek Preliminary Injunction Blocking New Overtime Rules

On September 20 we reported about a lawsuit by 21 states seeking to block the U.S. DOL’s new overtime exemption rules. This week, the states followed up their complaint by filing an Emergency Motion for Preliminary Injunction, asking the court to block enforcement of the new rule pending a final ruling on the states’ claims. According to the court’s docket no hearing date has been set.

Employers May Not Claim Voluntary Meal Break Payments as Credit for Overtime, 3rd Cir. Rules

Just because an employer pays its employees for time spent in meal breaks, even though it is not required to do so, does not mean the employer may apply those payments to offset overtime due to the employees, a federal appeals court has ruled.