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States and Business Groups File Lawsuits Seeking to Block DOL’s ‘White Collar’ Overtime Rule

Twenty-one states, led by Texas and Nevada, have filed a lawsuit against the Department of Labor seeking a preliminary and permanent injunction declaring unlawful the DOL’s Final Rule amending the overtime exemption for executive, administrative, and professional employees (the “white collar” exemptions) under the Fair Labor Standards Act.

FLSA "White Collar" Exemption Changes Challenged

Twenty-one states are challenging the U.S. Labor Department in court in an effort to stop or delay the impending increases to the dollar-amount thresholds for most of the federal Fair Labor Standards Act’s so-called "white collar" exemptions. The plaintiff states raise various arguments opposing the changes, in particular focusing on the application to public employers and future automatic updates. Merely hours later, numerous business groups filed a somewhat similar suit in the same district court on behalf of their members.

September Surprise? Two Federal Lawsuits Attack the Validity of the New FLSA Overtime Rule.

The effective date for the revisions to the U.S. Department of Labor (DOL) overtime regulations is less than 80 days away, and employers continue to struggle with the challenges created by changes to the existing rule. On September 20, 2016, federal court lawsuits were filed by two disparate groups, each attempting to put off or halt the implementation of the revisions.

21 States File Suit Challenging the DOL’s New Overtime Rule

Yesterday, a group of 21 states filed a lawsuit in the United States District Court for the Eastern District of Texas challenging the Department of Labor’s new overtime rule, which is set to take effect on December 1, 2016. The group challenging the rule is led by Texas and Nevada, and includes the following states: Alabama, Arizona, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, New Mexico, Ohio, Oklahoma, South Carolina, Utah, and Wisconsin. The lawsuit names as Defendants the DOL and its Wage and Hour Division, Secretary of Labor Thomas Perez, and Wage and Hour Administrator David Weil, and Assistant Administrator for Policy Mary Ziegler.

Overtime Rule Target of Lawsuit by 21 States

Several states today filed a lawsuit asking a federal court to nullify new Fair Labor Standards Act (FLSA) overtime regulations from the US Department of Labor (DOL) before they take effect December 1.

Whom Does USDOL's Salary Increase Not Affect?

There appears to be some continuing misunderstanding about exactly which exempt employees might be affected by the December 1 increase in the minimum salary amount required to meet the basic compensation criterion for an executive, administrative, professional, or derivative exemption under the federal Fair Labor Standards Act's Section 13(a)(1).

Ninth Circuit Approves Neutral Time Clock Rounding Practice

Time clock rounding is a longstanding employer practice whereby employers round employee starting and stopping times to the nearest five minutes, or to the nearest one-tenth or quarter of an hour. Is the practice legal? For over 50 years, a federal regulation has authorized the practice, but until recently, no federal appellate court had endorsed the practice. In May of 2016, the Ninth Circuit Court of Appeals determined that an employer’s time clock rounding procedures complied with federal law in Corbin v. Time Warner Entertainment-Advance/Newhouse Partnership, 821 F.3d 1069 (9th Cir. 2016).

What Is The Section 7(i) Exemption And Does It Apply To Auto Dealer Service Advisers?

Over the summer, the U.S. Supreme Court punted on the question of whether “Service Advisers” or “Service Writers” at auto dealerships fall within the Fair Labor Standards Act’s exemption for “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles.” For those outside of the auto industry, these are the people who greet you when you pull into the service department and communicate with you about what work your car might need. Since the question of whether service advisers count as “salesmen” may not be definitively resolved for some time yet, many auto dealers find themselves looking for other overtime exemptions that may apply to these positions.

Ninth Circuit Stands By Tip-Pooling Restrictions

The U.S. Court of Appeals for the Ninth Circuit has denied petitions for rehearing, as a panel or en banc, its opinion earlier this year holding that the U.S. Department of Labor could extend the Fair Labor Standards Act’s tip-pooling restrictions to instances where the tipped employees received the minimum wage without reliance on the Section 203(m) tip credit. Circuit Judge Diarmuid O’Scannlian’s highly critical dissent, in which he was joined by nine others, could serve as a tempting invitation for the U.S. Supreme Court to accept review of the matter.

Federal Appeals Court Refuses To Reinstate Tip-Pooling Policies

Restaurants and other hospitality businesses in the Western U.S. received bad news late yesterday as a federal appeals court refused to strike down a controversial tip-pooling regulation. The U.S. Department of Labor’s (USDOL’s) rule prohibits businesses from requiring employees to share their tips even if the tipped employees are paid minimum wage, and although a group of hospitality employers hoped that a court would reject the rule as running contrary to well-established law, the 9th Circuit Court of Appeals once again upheld the rule.