On September 23, 2021, the U.S. Department of Labor (DOL) issued its latest rule related to tip pooling. The rule modifies and clarifies aspects of a rule previously issued by the Trump administration. Several portions of the Trump administration’s final rule went into effect April 30, 2021.
Articles about the federal Fair Labor Standards Act (FLSA) an other topics related to wage and hours issues.
Highly Compensated Offshore Worker Paid a Day Rate Found Entitled to Overtime
In a recent en banc decision (meaning the case was heard before all the judges rather than a panel of three), the US Court of Appeals for the Fifth Circuit held that a tool pusher earning more than $200,000 a year was entitled to overtime because the day rate he was paid did not qualify as a “salary” under the Fair Labor Standards Act (FLSA).
DOL Cracks Down, and Opens Cracks, on Employers Keeping Tips
Employers will soon face stricter financial penalties for keeping their employees’ tips under a final rule published by the U.S. Department of Labor (DOL) on September 24, 2021. Section 3(m)(2)(B) of the Fair Labor Standards Act (FLSA) prohibits employers—including “managers and supervisors”—from keeping employees’ tips “for any purposes,” regardless of
Final Rule Affirms U.S. Department of Labor’s Power to Fine Businesses That Engage in Tip Theft
The U.S. Department of Labor published a final rule on September 23, 2021 clarifying several amendments to section 3(m) of the Fair Labor Standards Act (FLSA) that concern tip pooling. The final rule reestablishes the DOL’s right to assess civil monetary penalties (CMPs), in an amount up to $1,100
Labor Department Issues Tip Regulations Final Rule on Tip Sharing, Civil Monetary Penalties
The U.S. Department of Labor (DOL) has issued a Final Rule under the Fair Labor Standards Act (FLSA), addressing the conditions under which managers or supervisors may receive or share tips, including whether managers and supervisors who receive tips directly from customers may share those tips with others.
UPDATE: Federal Judge Allows Student-Athletes Wage and Hour Claims Against the NCAA to Continue
The NCAA must defend claims that they are a joint employer from student-athletes seeking to be paid for the time they spend participating in collegiate athletic activities. Despite U.S. District Court Judge John Padova’s dismissal with prejudice of wage and hour claims filed by the student-athletes against more than 20
Fifth Circuit Rules Day Rate Compensation Does Not Satisfy Requirement of Payment on a Salaried Basis for Exempt Status
The issue of the proper application of the highly compensated employee exemption under the Fair Labor Standards Act (FLSA), as it applies to employees paid on a “day-rate” basis in the oil and gas industry, has been a hotly debated issue in recent years, especially in the Fifth Circuit Court
Eleventh Circuit Refuses to Defer to DOL Opinion Letter Eliminating ‘20%’ Rule
In late 2020, the U.S. Department of Labor (DOL) issued a Tip Regulations Final Rule that, in part, sought to eliminate the so-called “80/20,” or “20%,” Rule under the Fair Labor Standards Act (FLSA).
$11.25 Minimum Wage Effective January 1, 2022 for Federal Contractors Subject to Obama-Era Executive Order
In the flurry of activity surrounding President Biden’s Executive Order 14042 – Ensuring Adequate COVID Safety Protocols for Federal Contractors, federal contractors are also awaiting approval of regulations to implement President Biden’s Executive Order raising the minimum wage for some federal contractor employees to $15 per hour.
In the meantime,
Even High Earning Supervisors Can Be Entitled to Overtime
Originally posted to our Wage and Hour Insights Blog. Wage and hour law is full of traps for the unwary. Even compensation practices that are well-accepted across an entire industry can sometimes create huge headaches for employers in the face […]
Sixth Circuit Limits Exercise of Personal Jurisdiction in FLSA Collective Actions
On August 17, 2021, the Sixth Circuit Court of Appeals became the first federal appellate court to expressly rule on the application of the Supreme Court of the United States’ decision in Bristol-Myers Squibb Co. v. Superior Court of California to Fair Labor Standards Act (FLSA) collective actions.
Sixth Circuit Limits the Scope of Collective Actions
Executive Summary: The Sixth U.S. Circuit Court of Appeals (the federal appeals court with jurisdiction over Kentucky, Michigan, Ohio, and Tennessee) recently held that Fair Labor Standards Act (FLSA) lawsuits filed on behalf of employees in multiple states can only proceed when the court has proper jurisdiction over the employer defendant.
Circuit Courts Endorse Limiting Jurisdiction in FLSA Collective Actions
In two decisions issued on the same day, the Sixth and Eighth Circuits recently joined many district courts across the country in holding that federal courts cannot exercise jurisdiction over Fair Labor Standards Act (FLSA) claims that arise from out-of-state conduct when the defendant is not subject to the
Auto Technicians’ Pay Structure May Have Been Convoluted, But It Was Still a Bona Fide Commission Plan, Seventh Circuit Concludes
Although the employer’s pay system for its auto repair technicians was complicated and at times redundant, it nevertheless constituted a bona fide commissions compensation method subject to exemption from the overtime pay provisions of the Fair Labor Standards Act (FLSA), the Seventh Circuit Court of Appeals has held. Reed v.
DOL Proposes New Rule to Establish Minimum Wage Standards for Federal Contractors
On July 22, 2021, the U.S. Department of Labor (DOL) published a notice of proposed rulemaking to outline the standards and procedures that it will use to administer President Joe Biden’s Executive Order 14026, which he signed on April 27, 2021. Executive Order 14026 proposed an increase to the minimum
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