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.
Articles Discussing Overtime Under The FLSA.
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.
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.
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 Releases a Proposed Rule to Clarify the Types of Compensation that Employers Must Include in the Overtime Calculation
On March 28, 2019, the U.S. Department of Labor (DOL) released a proposed rule to amend the regulations at 29 CFR Part 778 to clarify and update the “regular rate” requirements under section 7(e) of the Fair Labor Standards Act (FLSA), 29 USC §207(e), focusing on the types of compensation and benefits that employers must include in the overtime calculation.
DOL Proposes to Increase the Minimum Salary for the “White Collar” Overtime Exemptions to $35,308
On March 7, 2019, the Wage and Hour Division of the U.S. Department of Labor, through its Acting Administrator Keith Sonderling, published the long-awaited Notice of Proposed Rulemaking (NPRM) to revise the “white collar” overtime exemption regulations. The DOL proposes to increase the minimum salary for exemption from $455 per week ($23,660 annualized) to $679 per week ($35,308 annualized). Employees with total annual compensation of $147,414 (including at least $679 per week paid on a salary basis) – up from the current $100,000 total annual compensation – would qualify for exemption under the test for highly compensated employees (HCE).
Department of Labor Releases New Proposed Overtime Rule, Sets Minimum Salary at $35,308
The U.S. Department of Labor (DOL) has issued a new proposed rule raising the annual minimum salary requirements for the Fair Labor Standards Act (FLSA) “white collar” overtime exemptions (executive, administrative, and professional). Under the new proposed rule, the salary level for the white collar exemptions will increase to $35,308, or $679 per week.
New Overtime Rule Soon to Make Its Appearance
The DOL’s new overtime rule, intended to replace the rule announced late in the Obama administration but subsequently declared invalid by a federal court, finally has made, or soon will make its way, to the Office of Information and Regulatory Affairs (OIRA), a division of the Office of Management and Budget (OMB), Bloomberg Law has reported. OIRA is responsible for reviewing significant regulations before publication to ensure agency compliance with the principles in Executive Order 12866, which include incorporating public comment, considering alternatives to the rulemaking, and analyzing both costs and benefits.
DOL Sends Proposed Overtime Rule to the White House
The U.S. Department of Labor will send its draft of the long-awaited Notice of Proposed Rulemaking (NPRM) on the “white collar” overtime exemptions to the White House Office of Management and Budget (OMB) for review on or before Friday, January 11, 2019, as reported by Bloomberg Law and independently confirmed by Littler. OMB review is the final step before publication of the proposed rule in the Federal Register.
WPI Wage Watch: Minimum Wage and Overtime Updates (September Edition)
September may mean saying goodbye to summer, but minimum wage and overtime developments across the country are still going strong. A nominee to lead federal wage and hour enforcement efforts has been put forward, labor agencies are beginning to announce their adjusted minimum wage rates for 2018, and state and local legislatures are looking to expand existing laws.
DOL to Take Steps to Address Persuader, Overtime Rules
The same week the Department of Labor removed two guidance documents governing joint employment and independent contractors, it indicated it will soon reconsider two contentious rules that have been put on hold. The DOL is proposing to rescind the so-called “persuader” rule that would have expanded reporting requirements for employers that use labor-management consultants for certain purposes, and plans to seek public input on the salary thresholds set in the “white collar” overtime rule. Both of these rules were prevented from taking effect by court order.
Straightening Out the Fluctuating Hour Workweek: Evaluating the Risks and Benefits of One Method of Overtime Payment
With the Department of Labor’s recent changes to the salary threshold for white-collar exemptions set to take effect on December 1, 2016, many employers are struggling to find the best option for how to comply with the new regulations without breaking the bank. One lesser-known alternative that is receiving increased attention from many companies is the fluctuating workweek method of payment for non-exempt employees.
Labor Department Settles Overtime Pay Dispute with Its Own Employees
Executive Summary: The Department of Labor (DOL) has agreed to pay $7 million to resolve claims that it failed to pay overtime to thousands of its own employees. The settlement reached with the American Federation of Government Employees Local 12 (AFGE), which represents approximately 3,000 federal employees in the Washington metro area, brings closure to longstanding allegations claiming the DOL failed to properly compensate employees.