The US Department of Labor (DOL) has issued three new Fair Labor Standards Act (FLSA) opinion letters, which address:
Ogletree Deakins • June 18, 2019
On June 10, 2019, the Supreme Court of the United States unanimously ruled that state wage and hour laws do not apply to offshore drilling workers where federal law addresses the relevant issue.
Jackson Lewis P.C. • June 14, 2019
Workers on oil drilling platforms off the coast of California are covered by the Fair Labor Standards Act (FLSA), not California’s overtime and wage laws, the U.S. Supreme Court has held unanimously. Parker Drilling Management Services, Ltd. v. Newton, No. 18-389 (June 10, 2019). Accordingly, the Court ruled that workers are not entitled to be paid for the nonworking time they spend on the platform, including for sleeping.
Fisher Phillips • June 10, 2019
By a unanimous 9-0 decision, the U.S. Supreme Court today declined to extend California’s wage-and-hour laws to employees working on offshore drilling platforms subject to the Outer Continental Shelf Lands Act (Parker Drilling Management Services Ltd. v. Newton). Although this decision represents a victory for the employer involved in the dispute, you should check with your legal counsel to ensure you are in compliance with the correct legal standard given the nuanced nature of this ruling.
Jackson Lewis P.C. • June 09, 2019
Rejecting employer Timberline South’s argument, among others, that FLSA coverage did not apply because all of its timber harvesting occurred only within one state, the Sixth Circuit Court of Appeals nevertheless concluded that the commuting and meal break times should not have been included in the trial court’s calculation of overtime damages. Secretary of Labor v. Timberline South, LLC, 920 F.3d 1065 (6th Cir. 2019). The Sixth Circuit includes the federal courts in Michigan, Ohio, Kentucky and Tennessee.
The IRS has published a draft of the 2020 Form W-4, Employee's Withholding Allowance Certificate, which incorporates the changes made by the 2017 Tax Cuts and Jobs Act. The purpose of the proposed new design is to reduce the form's complexity and increase withholding accuracy and transparency, according to the agency.
Littler Mendelson, P.C. • June 04, 2019
This month, we provide a rates-only update detailing state- and local-level minimum wage (and exempt employee pay) increases scheduled to occur on July 1, 2019, plus other developments concerning the minimum wage, tips, and overtime that occurred in May.
Jackson Lewis P.C. • June 03, 2019
On Friday, May 31, 2019, the IRS released a new proposed design of the IRS Form W-4 to be used starting in 2020. The goal is to make it easier for employees to calculate accurate withholdings under the 2017 Tax Cuts and Jobs Act. Employees who already have completed a Form W-4 will not be required to submit a new Form W-4 simply due to the redesign. However, once finalized, the new Form will be required for employees hired on or after January 1, 2020. More information is available here.
A federal judge has ordered Steak 'n Shake to pay $7.7 million in back pay and liquidated damages for misclassifying store managers as exempt employees and failing to pay overtime. To be exempt from overtime pay under the Fair Labor Standards Act (FLSA), an employee's primary duties must involve tasks related to managing the business and directing the work of other employees. The managers claimed that they worked 50- to 70-hour weeks, often performing duties typically assigned to hourly workers, but did not receive any overtime pay.
Fisher Phillips • May 29, 2019
The comment period for USDOL's most recent proposal regarding the Fair Labor Standards Act's white-collar exemptions (Overtime Rule 2.0) has closed. You probably have heard that the proposed salary level test is "too high" and "too low", and it all feels a bit like déjà vu. In actuality there have been some notable improvements up to this point, though hopefully more to come before finalization.