The U.S. Department of Labor (DOL) has issued a proposed rule to end the practice of paying subminimum wages to certain workers with disabilities. The
Articles Discussing The Minimum Wage Under The FLSA.
Littler’s Semi-Annual Rates Update for Minimum Wage, Tips, and Exempt Pay Increases on January 1, 2025 (and Other Developments)
While Americans across the country headed to the polls to decide who would govern their country, state, county, or city, most decisions were already made concerning what minimum pay rate would govern the employment of non-exempt and exempt employees on January 1, 2025. However, some state and local ballot measures
DOL Proposes Nixing Subminimum Wages for Workers With Disabilities
On December 4, 2024, the U.S. Department of Labor (DOL) proposed ending the practice of paying subminimum wages to workers with certain disabilities. The proposed rule would phase out subminimum wages for workers with disabilities over a three-year period.
DOL Opinion Letter Addresses Expense Reimbursement and Regular Rate
The U.S. Department of Labor (DOL) has released an opinion letter addressing whether per diem expense payments for tools and equipment may be excluded from the hourly rate when calculating overtime pay under the Fair Labor Standards Act (FLSA). (FLSA 2024-01, Nov. 8, 2024).
While the opinion letter doesn’t break
DOL Opinion Letter Offers Additional Insight Regarding Regular Rate Treatment of Expense Reimbursement Payments
On November 8, 2024, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2024-01. This letter provides additional clarity about whether daily expense reimbursement payments can be excluded from an employee’s regular rate when calculating overtime pay under the Fair Labor Standards Act (FLSA).
Federal Contractors Catch a Break: Ninth Circuit Strikes Down EO 14026 and DOL’s Minimum Wage Mandate
Takeaways:
Federal Contractors Should Prepare for 2025 Minimum Wage Hike as Legal Challenges Unfold
Federal contractors may need to be prepared to increase pay for employees working on, or in connection with, covered federal government contracts. The hourly minimum wage for employees performing work on federal contracts will rise from $17.20 to $17.75 on Jan. 1, 2025, the Department of Labor (DOL) has announced.
Key Takeaways for Federal Contractors as Minimum Wage Rises to $17.75 in January
Despite a number of pending lawsuits challenging the Biden Administration’s authority to impose the minimum wage increase for federal contractors, the new
What’s next? The Potential Impact of the Fifth Circuit’s Mayfield Decision on the 2024 DOL Minimum Salary Rule
Tenth Circuit Upholds Court’s Refusal to Enjoin Federal Contractor Minimum Wage Hike
President Joe Biden likely has authority under the Procurement Act to raise the minimum wage for employees of federal contractors to $15 per hour, the U.S. Court of Appeals for the Tenth Circuit ruled. Bradford v. U.S. Dep’t of Labor, No. 22-1023 (Apr. 30, 2024).
Sixth Circuit Rejects Two Methods for Computing Workers’ Vehicle Expenses for Minimum Wage Purposes
The U.S. Court of Appeals for the Sixth Circuit vacated two district court decisions involving how pizza delivery drivers should be reimbursed for vehicle-related expenses under the Fair Labor Standards Act (FLSA). Parker v. Battle Creek Pizza, Inc., No. 22-2119 (Mar. 12, 2024); Bradford v. Team Pizza, Inc., No. 22-3561 (Mar. 12, 2024). The Sixth Circuit panel remanded both cases.
2024 State and Major Locality Minimum Wage Updates
Almost half of the states, and several major localities, will increase their minimum wage rates in 2024, with a majority of the changes effective on January 1, 2024. The table below lists state and certain major locality minimum wage increases for 2024—and future years, if available—along with the related changes
Texas Federal Court Bars Enforcement of $15 Minimum Wage for Federal Contractors Against Three States
President Joe Biden exceeded his authority under the Procurement Act when he issued an executive order (EO 14026) raising the minimum wage rate for employees of federal contractors to $15 per hour, a federal court in Texas ruled in a suit brought by the states of Louisiana, Mississippi, and Texas. Texas, et al. v. Biden, et al., No. 6:22-cv-00004 (S.D. Tex. Sept. 26, 2023).
Dear Littler: How Do Restaurants Without Table Service Handle Tips?
Dear Littler,
Texas Federal Court Stiffs Restaurant Industry on Efforts to Strike Down Department of Labor Regulation on Tip Credit Work
Executive Summary: On July 6, 2023, a federal district court upheld the U.S. Department of Labor’s (DOL’s) regulations on the type and amount of work that tipped employees may perform while being paid the reduced minimum wage under the tip credit provisions of the federal Fair Labor Standards Act (FLSA). The tip credit provisions in the FLSA permit an employer to apply a tip credit and pay a subminimum wage of $2.13 if the tips to the employee are sufficient to result in the employee earning the minimum wage of $7.25 per hour. Judge Robert Pitman in the Western District of Texas granted the defendant DOL’s motion for summary judgment in the case brought by the Restaurant Law Center and Texas Restaurant Association and denied the plaintiffs’ motion for a preliminary injunction and motion for summary judgment seeking to invalidate the regulations limiting the type and amount of work that can be performed in a tipped occupation for which the lower minimum wage is paid. See Restaurant Law Center v. United States Department of Labor, Case 1:21-cv-01106-RP (July 6, 2023).