The U.S. Department of Labor (DOL) has released its Final Rule updating regulations governing “joint employer” status under the Fair Labor Standards Act (FLSA). The regulations have not been updated in more than 60 years.
Articles Discussing What Employers Are Covered By The FLSA.
Former cosmetology students are not employees entitled to pay under the FLSA and various state laws, the Seventh Circuit holds, rejecting the Department of Labor’s six-factor test but declining to adopt any bright-line test. Hollins v. Regency Corporation, 2017 U.S. App. LEXIS 15076 (7th Cir. Aug. 14, 2017).
On July 27, 2017, House Republicans unveiled a bill, entitled the Save Local Business Act, that would amend two labor and employment statutes to clarify when an entity can be deemed a “joint employer.” At a press conference debuting the legislation, several of its sponsors, along with supporters from the business community, spoke about the need for the legislation.
On January 25, 2017, the U.S. Court of Appeals for the Fourth Circuit established a new six-factor test to determine whether two or more entities are joint employers for purposes of the Fair Labor Standards Act (“FLSA”). Salinas v. Commercial Interiors Inc., No. 15-1915, ___ F.3d ___, 2017 WL 360542 (4th Cir. Jan. 25. 2017). The resulting standard is unique from other circuits and appears to expand joint employer liability under the FLSA.
On Jan. 25, 2017, the Fourth Circuit Court of Appeals, which has jurisdiction over North and South Carolina, issued an opinion in a collective action wage and hour case setting forth a six-factor test for determining whether two persons or entities constitute joint employers under the Fair Labor Standards Act (FLSA). Salinas v. Commercial Interiors Inc., Opinion No. 15-1915. On the same day, the court also issued another opinion in two consolidated wage and hour cases under the FLSA, applying the six-factor test and reversing the district court’s dismissal of the cases. Hall v. DirectTV, LLC, Opinion Nos. 15-1857 and 15-1858. These opinions resolve some uncertainty regarding joint employment determinations under the FLSA that had been created by the varying tests used by district courts within the Fourth Circuit and set forth a broader, more expansive approach to joint employment determinations under the FLSA than under Title VII. A discussion of the Fourth Circuit’s joint employment test under Title VII can be found here.
On January 20, 2016, the Wage and Hour Division of the U.S. Department of Labor issued a new Administrator’s Interpretation (“AI”) on the issue of joint employment under the FLSA. What is joint employment?
If you read this blog, attend presentations on wage and hour issues, or just shudder every time you read about another overtime or minimum wage lawsuit, you might assume that all employees are covered by the federal Fair Labor Standards Act (FLSA) and its regulations. However, in some rare circumstances, the FLSA may not cover very small and, importantly, local businesses, meaning that those businesses’ employees may not be entitled to the minimum wage or overtime pay under the FLSA. A quick warning before we start: as we have highlighted in the past, though, most states and an increasing number of local governments do not provide exemptions from state and local minimum wage laws, even for small businesses. With a very few exceptions, the fact that the FLSA does not apply only resolves one half of the question; you almost certainly still have to contend (and comply) with state and local laws, that may have different standards and penalties.
Despite the focus in recent years on the misclassification of employees as contractors, unfortunately, we continue to see numerous companies ranging from the Fortune 500 to startups make mistakes, albeit mostly unintentional, with their use of “contractors.”
Executive Summary: On July 9, 2012, a federal appeals court in Georgia affirmed the dismissal of DHL Express, Inc., from a lawsuit brought by a class of current and former delivery drivers alleging overtime violations under the Fair Labor Standards Act (“FLSA”). According to the court, an assessment of the economic realities of the case did not reveal an employment relationship between DHL and the drivers.