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.
Articles Discussing Overtime Under The FLSA.
ELEVENTH CIRCUIT REINFORCES FLUCTUATING WORKWEEK METHOD OF PAYING OVERTIME
The federal Department of Labor (DOL) has long interpreted the Fair Labor Standards Act (FLSA) to allow an employer to pay a nonexempt employee a fixed salary for all hours worked in a workweek and “half-time” of an employee’s regular rate for all hours worked greater than forty in a workweek, instead of “time-and-a-half” pay for those hours. This method of pay — called the “fluctuating workweek method” — may be used when a nonexempt employee’s weekly hours vary.
Computer Software Employees and Physicians Overtime Exemption Rates for 2022
For an employee to be deemed exempt from overtime regulations under California law, the employee must fit into a category of work that is deemed exempt. The most common exemption is the administrative exemption, which includes workers who are employed in administrative, managerial, executive, or professional capacities. There are detailed
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).
States Challenge DOL’s Tip Regulations Final Rule, DOL Withdraws Opinion Letters
On January 19, 2021, eight states (Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, and Pennsylvania), along with the District of Columbia, filed a lawsuit seeking to enjoin the Tip Regulations Final Rule published by the U.S. Department of Labor (DOL) in late December 2020. The Final Rule, which
DOL Opens the Door for Staffing Firms to Exempt Workers from Overtime as “Retail or Service Establishments”
On the last full day of the Trump administration, the Department of Labor’s Wage and Hour Division (WHD) clarified that staffing firms can qualify as “retail or service establishments” under FLSA section 7(i). Prior to May 2020, staffing firms were expressly excluded from taking advantage of the 7(i) exemption.
Second Circuit Affirms Use of Fluctuating Workweek Pay Method for ‘Big Box’ Store District Managers
Concluding that the company properly used the fluctuating workweek (FWW) pay method, the Second Circuit Court of Appeals has affirmed summary judgment in favor of retailer Bed Bath & Beyond in a Fair Labor Standards Act (FLSA) collective action brought by a group of former district managers. Thomas v. Bed Bath & Beyond, 2020 U.S. App. LEXIS 18747 (2d Cir. June 15, 2020).
DOL Issues Final Rule on Fluctuating Workweek Method of Computing Overtime under Fair Labor Standards Act
On May 20, 2020, the U.S. Department of Labor (DOL) released its final rule revising its so-called “fluctuating workweek” regulation. The final rule confirms that incentive payments—such as bonuses, commissions, and other premium payments—made in addition to the salary are compatible with the use of the fluctuating workweek method
U.S. Department of Labor Issues Final Rule on Calculating FLSA’s ‘Regular Rate’ of Pay
The Department of Labor (DOL) has issued its Final Rule revising the regulations governing the calculation of the “regular rate” of pay, used to calculate overtime, under the Fair Labor Standards Act (FLSA). The Final Rule, which becomes effective on January 15, 2020, generally adopts the proposed rule published in March 2019, with some additional clarification and examples.
New Year’s Resolutions and Regulations that Employers Should Know Before the Ball Drops
As 2019 winds down, employers should ask themselves if they’re ready to face the New Year. January 1, 2020 brings mandatory regulations both nationwide and locally. Most notably, effective January 1st, the Fair Labor Standards Act (FLSA) – the federal wage/hour law – will raise its salary test to the “white collar” exemptions to approximately $35,000/year. The federal Department of Labor (DOL), which is tasked with enforcing the FLSA, predicts 1.3 million currently exempt employees will be reclassified as nonexempt next year by its final rule.
Labor Department Clears the Way for Employee Perks
Employees appreciate employee discounts, tuition reimbursement, prizes of small value, and wellness benefits. But those perks had been put in danger in recent years by lawsuits claiming that employers should have paid overtime on their value. On December 12, 2019, the U.S. Department of Labor saved these and other welcomed extras by issuing revised regulations clarifying when employers need not pay overtime on perks.
Labor Department Proposes Changes to Clarify Use of FLSA’s ‘Fluctuating Workweek’ Pay Method
Persistent confusion over the Department of Labor’s (DOL) “fluctuating workweek” (FWW) pay method to satisfy employers’ obligation to pay overtime has deterred many from using it. Now, the DOL has proposed changes to clarify the pay method.
DOL Attempts to End Confusion Regarding Bonuses and the Use of the Fluctuating Workweek
Background: The US Department of Labor’s Wage and Hour Division (DOL) is attempting to provide clarity and predictability to one of the most confusing areas of wage and hour law – the fluctuating workweek. The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees time and a half their regular rate of pay for hours worked over forty in each week. However, if certain conditions are met, the DOL allows employers to pay “a fixed salary for fluctuating hours” and overtime at a half-time rate. See 20 CFR 778.114.
Department of Labor Proposes Amended Regulations Concerning FLSA’s ‘Regular Rate’
The Department of Labor (DOL) has issued a Notice of Proposed Rulemaking (NPRM) to revise the regulations governing the calculation of the regular rate under the Fair Labor Standards Act (FLSA).
DOL Proposes Changes for Calculating Overtime
On March 29, the United States Department of Labor (DOL) issued a request for comments on proposed rules for calculating overtime for non-exempt employees. Specifically, the document notes the confusion of what items of compensation are included in the rate calculation for determining an employee’s regular rate for overtime purposes. Noting that a majority of part 778 was promulgated more than 60 years ago, the DOL noted that workplace laws and types of compensation received in the workplace have evolved dramatically.