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.
Articles Discussing Overtime Under The FLSA.
Do School Employees Get Overtime For Occasional Extra Duty? [Wage & Hour FAQ]
Q. Our school district has hourly, non-exempt employees who occasionally perform extra work for the district – for example, chaperoning a school dance, or taking tickets at home games. Do we need to track the hours that employees perform on these tasks and pay them overtime if their total work hours go over 40 for a single week?
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.
Converting Salary to an Hourly Rate
Since the U.S. DOL published its new overtime exemption rules, several people have asked me how one goes about converting a salary to an hourly rate that will give employees about the same amount of pay once overtime is factored in. There are really two parts to this calculation – one quite simple, the other a bit harder.
No Good Deed Goes Unpunished – Employer Liable for Not Including Cash-in-Lieu of Benefits Payments in Regular Rate
In a case of first impression, the Ninth Circuit held last week in Flores v. City of San Gabriel that an employer was liable to a class of employees for underpaid overtime compensation stemming from the employer’s failure to include cash-in-lieu of benefits payments in its calculation of the regular rate for overtime purposes.
New Salary Threshold May Be About $47,000
According to a report from Bloomberg BNA, unnamed DOL staffers have stated that the salary threshold in the hotly anticipated FLSA exemption rules will be about $47,000 per year, down slightly from the $50,440 level suggested by the proposed rules published last summer. This is not an official announcement, so while the statement may well be accurate, we suggest waiting until the rules are actually published before employers take any definite action based on the information.
U.S. Department of Labor Poised to Issue Final Rule Expanding Overtime Eligibility
The U.S. Department of Labor’s Final Rule raising the salary threshold applicable to the so-called white collar exemptions under the Fair Labor Standards Act will likely take effect within the next few months. The Final Rule was submitted last week by the DOL to the White House Office of Management and Budget, a necessary first step before publication in the Federal Register. The new regulations are expected to expand by millions the number of employees eligible for overtime pay.
New Federal Overtime Regulations Expected to Be Published in Next Few Months
Last year, the Department of Labor (“DOL”) published proposed regulations overhauling the federal white collar overtime exemptions. In its proposed regulations, the DOL proposed increasing the minimum salary to qualify for exempt status (under the white collar exemptions for administrative, executive, and professional employees) from $23,660 per year to approximately $50,440 per year, and increasing the minimum salary to qualify for the highly compensated employee exemption from $100,000 per year to approximately $122,148 per year.
Republicans Introduce Bill to Nullify DOL Overtime Rule, While Democrats Introduce Legislation Addressing Wage Theft
Wage-related bills have been popular in Congress this week. While none of these measures are expected to be enacted during this election year, they provide clues to the battle that lies ahead for the Department of Labor’s final overtime rule, and highlight the pay-related issues that might gain traction at the state and local levels.
Possible Final New Overtime Rule Before July
Just a few weeks ago, we posted our latest update on the Department of Labor’s proposed new overtime rule, which calls for a more than doubling of the salary level threshold for white collar exempt positions. At that time, we reported on the House Education and Workforce Committee’s renewed inquiry into the DOL’s outreach efforts, which some saw as an attempt by Congress to somehow delay or affect the issuance and implementation of the final rule.
Reporting Indicates Accelerated Timetable for Proposed Overtime Rule
Multiple sources have reported that yesterday the USDOL sent the proposed final overtime rule to the Office of Management and Budget (OMB) for its mandatory review. If OMB’s review is completed on an expedited basis, DOL could disseminate the proposed final rule to the public by mid-April, with an effective date potentially as early as the beginning of June, subject to delay from that date based on Congressional review under the Congressional Review Act.
Union Agreement to Arbitrate “Sleep-In” Wage and Hour Claims Applies Even Though Agreement Was Signed After Lawsuit Began
Executive Summary: In Lai Chan et al. v. Chinese-American Planning Council Home Attendant Program, Inc., decided February 3, 2016, the Southern District of New York (covering New York, Bronx, Westchester, Rockland, Putnam, Orange, Dutchess, and Sullivan counties) deferred to arbitration the unpaid wage and overtime claims of sleep-in workers covered by a union agreement, even though the agreement to arbitrate was signed after the lawsuit alleging these claims against the home care agency was commenced. An earlier decision in this same case from the New York County Supreme Court had denied the agency’s motion to dismiss the complaint, and volunteered that under New York Labor Law, sleep-in workers must receive wages for 24 hours of work. This question will now be decided in arbitration, not in a court action.
Contract Attorney “Practiced Law,” Not Entitled To Overtime
In the latest chapter in the ongoing saga regarding contract attorneys claiming to be overtime eligible, Judge Ronnie Abrams of the Southern District of New York ruled that a contract attorney reviewing documents for litigation firm Quinn Emanuel was “practicing law” and thus exempt from overtime pursuant to 29 C.F.R. § 541.304(a)(1). Henig v. Quinn Emanuel Urquhart & Sullivan, LLP, S.D.N.Y., No. 1:13-cv-01432, 12/30/15.
When Will The DOL Issue Final Regulations Increasing The Salary Basis Threshold?
Since the United States Department of Labor announced its intention, in response to the President’s directive, to more than double the salary basis necessary to qualify for the “white collar” exemptions from overtime, the business community has swung into action. Employers and associations have both been lobbying for a more modest increase to the minimum required salary and simultaneously preparing to comply with the new rule should it take effect in its current proposed form. One key element of that compliance is of course budgeting for exactly when the new rule will be promulgated in final form and then effective.