In a highly anticipated decision, the U.S. Court of Appeals for the Sixth Circuit has ruled it will not use the lenient, two-step procedure in deciding whether to authorize sending notice of a collective action to other workers under the Fair Labor Standards Act (FLSA). Clark v. A&L Homecare and Training Center, LLC, Nos. 22-3101 & 22-3102 (May 19, 2023).
Articles about the federal Fair Labor Standards Act (FLSA) an other topics related to wage and hours issues.
Fifth Circuit Reverses Denial of Preliminary Injunction to Invalidate DOL Tipped Dual Jobs Rule
The U.S. Court of Appeals for the Fifth Circuit has reversed and remanded a district court’s denial of a motion to preliminarily enjoin the Dual Jobs Final Rule addressing when employers may take a tip credit under the Fair Labor Standards Act, published by the Department of Labor (DOL) in 2021.
Why Can Everyone Be Classified as “Exempt”?
In this episode, Jen discusses why most employees must be treated as “non-exempt,” and paid (among other things) applicable overtime.
Legal Challenge to FLSA 80/20 Rule Returns to Texas Court
On April 28, 2023, the U.S. Court of Appeals for the Fifth Circuit ordered a Texas court to further consider a legal challenge to the United States Department of Labor’s 80/20 Rule, which applies to employers that take a tip credit toward their minimum wage obligation under the Fair
Third Circuit Finds Deductions from Accrued PTO Do Not Violate Salary Basis Requirement for Exempt Employees
The Third Circuit recently highlighted the flexibility afforded to employers when providing fringe benefits to salaried exempt employees. In Higgins v. Bayada Home Health Care Inc., No. 21-3286, 2023 WL 2518345 (3d Cir. Mar. 15, 2023), the Third Circuit held that employer-provided paid time off (PTO) is a fringe
National Pay Transparency Bill Proposed
With states and municipalities across the country enacting pay transparency laws, a bill was recently introduced in Congress that would require disclosure of pay ranges nationwide to address concerns with pay equity. On March 14, 2023, United States Representative Eleanor Holmes Norton (D-DC) introduced the “Salary Transparency Act,” or H.R.
Third Circuit Finds Deductions From Exempt Employees’ PTO Do Not Impact Exempt Status Under the FLSA
On March 15, 2023, in a case of first impression, the United States Court of Appeals for the Third Circuit held that paid time off is not part of an employee’s salary. Therefore, the employer did not compromise employees’ exempt status under the Fair Labor Standards Act (when it reduced
PTO Deductions Are Not “Salary” Under the FLSA, Third Circuit Holds
In an issue of first impression, the U.S. Court of Appeals for the Third Circuit held that paid time off (“PTO”) is not a form of salary under the Fair Labor Standards Act (“FLSA”) and, therefore, deductions from a salaried employee’s PTO balance do not violate the Act. Higgins v.
Florida Senate Bill Would Criminalize ‘Knowingly and Willfully’ Transporting Undocumented Immigrants Into or Within Florida
A bill working its way through the Florida Legislature would criminalize the “knowing[] and willful[]” transportation of undocumented immigrants “into or within” the state. If enacted, Senate Bill 1718 could impact Florida’s hospitality and agricultural sectors.
Wage Payment Reminders in Wake of Uncertain Economic Conditions
In light of the recent failure of Silicon Valley Bank, employers are well-advised to revisit their wage payment obligations to employees.
The Often Overlooked Fluctuating Workweek Method of Computing Overtime
The U.S. Supreme Court recently ruled that a worker who earned more than $200,000 still had to be paid the overtime rate for hours worked over 40 in a workweek.
U.S. Supreme Court Declines to Consider Whether Bristol-Myers Applies to Collective Actions
The U.S. Supreme Court has declined to settle the circuit split on whether its 2017 decision in Bristol-Myers Squibb Co. v. Superior Court of Cal. applies to collective actions brought under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 216(b). In Bristol-Myers, the justices held that a federal court could not exercise specific personal jurisdiction over nonresident plaintiffs’ claims against a nonresident company.
Is It Compensable? Federally Recognized Holidays
February 20, 2023, was Presidents’ Day, one of several federal holidays occurring throughout the year in the United States. Private-sector employers are not required by federal law to give employees any federal holidays off. Nevertheless, many private companies provide at least some federal holidays off for their employees. Are those
SCOTUS: $200K Per Year And Employee Still Entitled To Overtime Pay
U.S. Supreme Court Holds Employees Paid on a ‘Day Rate’ Basis Are Entitled to Overtime Pay
Affirming an en banc decision of the U.S. Court of Appeals for the Fifth Circuit, the U.S. Supreme Court has held that an employer’s day-rate pay structure did not satisfy the “salary basis” component of the “white collar” executive exemption under the Fair Labor Standards Act (FLSA), even though the employee at issue earned more than $200,000 per year and unquestionably met the salary-level and duties requirements of that exemption.
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