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New Overtime Rule Soon to Make Its Appearance

The DOL’s new overtime rule, intended to replace the rule announced late in the Obama administration but subsequently declared invalid by a federal court, finally has made, or soon will make its way, to the Office of Information and Regulatory Affairs (OIRA), a division of the Office of Management and Budget (OMB), Bloomberg Law has reported. OIRA is responsible for reviewing significant regulations before publication to ensure agency compliance with the principles in Executive Order 12866, which include incorporating public comment, considering alternatives to the rulemaking, and analyzing both costs and benefits.

Salary Increase On Its Way? Proposed "Overtime" Rule Heads To White House

The U.S. Department of Labor is moving closer to releasing is proposed changes to the white-collar exemptions a/k/a the infamous so-called "Overtime Rule".

DOL Sends Proposed Overtime Rule to the White House

The U.S. Department of Labor will send its draft of the long-awaited Notice of Proposed Rulemaking (NPRM) on the “white collar” overtime exemptions to the White House Office of Management and Budget (OMB) for review on or before Friday, January 11, 2019, as reported by Bloomberg Law and independently confirmed by Littler. OMB review is the final step before publication of the proposed rule in the Federal Register.

Department of Labor Applies Ministerial Exception Under the Fair Labor Standards Act

The United States Department of Labor’s Wage and Hour Division (WHD) issued an opinion letter, FLSA2018-29, on December 21, 2018, concluding that members of a religious organization were not subject to the Fair Labor Standards Act (FLSA) based on the ministerial exception and, as an additional reason, because the members did not expect compensation for the work performed.

Next Shot Fired: We’ve Read Grubhub’s 71-Page Appellate Response Brief So You Don’t Have To

The next shot has been fired in the long-running misclassification dispute between plaintiff Raef Lawson and gig economy giant Grubhub, as the company filed its Answering Brief with the 9th Circuit Court of Appeals late last night. As regular readers of this blog know, Lawson and Grubhub squared off in the nation’s first-ever gig economy misclassification trial in late 2017, leading to a victory for Grubhub in February 2018. Things took a turn for the worse in April 2018 when the California Supreme Court dropped a bombshell and changed the misclassification standard with its infamous Dynamex decision, which ushered in the notorious ABC test, and Lawson’s attorneys quickly pounced and argued that he should now be declared the victor given the new standard. Lawson filed an appeal with the 9th Circuit Court of Appeals and filed his opening brief in November 2018. Now, it’s Grubhub’s turn.

Are your bonuses really discretionary?

As the holiday lights start to fade, we come to one of the most anticipated times of the year – bonus season!

The Writing is on the Wall: A $15 Minimum Wage Edges Toward the New Normal

Executive Summary: As Democrats take over the House of Representatives this month, some will be pushing to increase the federal minimum wage, which has remained stagnant at $7.25 per hour for the past decade. Not content to wait for Congress, the “Fight for 15” movement has scored victories throughout the country by increasing wages locally. Many states and localities will be or have already begun raising the minimum wage incrementally until they reach $15. Against this shifting backdrop, employers with operations in multiple cities need to be aware of different minimum wage rates that may be applicable in certain localities, even if such rates differ from those in the rest of the state.

Oldest Nationwide Misclassification Case Against Uber Gets Settled For $1.3M

The first-ever national misclassification case brought against Uber has now been put to bed. A federal court judge in North Carolina today gave her blessing on a $1.3 million settlement wrapping up the litigation, handing some 5,000 workers payouts ranging from $50 to almost $5,000.

DOL’s Opinion Letter Tackles Varying Average Wage Rates and FLSA Overtime Compliance

On December 21, 2018, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) released an opinion letter, FLSA2018-28, in which it addresses minimum wage and overtime pay requirements for employees with varying average hourly rates. The employer in question calculates pay by multiplying an employee’s time with clients by his or her hourly rate and then dividing that number by the employee’s total hours worked, a figure that includes both client time and compensable travel time. The resulting pay complies with minimum wage requirements. If an employee works more than 40 hours in a week, he or she is paid time and a half using a rate of $10 an hour for overtime hours worked regardless of his or her actual average hourly rate or regular rate of pay. The U.S. DOL/WHD found that this compensation system does not comply with the Fair Labor Standards Act’s (FLSA) overtime requirement when the employee’s actual regular rate of pay exceeds $10 per hour.

What Should Employers Know About Minimum Wages in 2019?

The “minimum wage” is the minimum hourly wage that an employer must pay to a covered nonexempt employee for work, and is set by federal, state, and local law. The current federal minimum wage, which was set in 2009 under the Fair Labor Standards Act (FLSA), is $7.25/hour.