Recently, the U.S. Department of Labor (“DOL”) Wage and Hour Division issued a significant policy shift, announcing it will no longer enforce or apply the 2024 Final Rule on independent contractor classification. The DOL specifically instructed its investigators not to
The Employer's Wage and Hour Advisor
The Employer's Wage and Hour Advisor, published by Honigman, focuses on developments and legal issues related to wage and hour laws under the Fair Labor Standards Act (FLSA) and related state regulations. It covers topics such as independent contractor classification, employer obligations for employee travel time compensation, standards of proof for FLSA exemptions, tip credit rules, and legislative reforms affecting wage and hour claims like California's PAGA. The blog provides updates on court decisions, Department of Labor policies, and state-specific regulatory changes that impact employer compliance and labor practices.
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Latest from The Employer's Wage and Hour Advisor
Supreme Court Clarifies Burden of Proof for FLSA Exemptions
The U.S. Supreme Court recently settled a long-standing dispute among federal appellate courts regarding the standard of proof required for employers to establish exemptions under the Fair Labor Standards Act (“FLSA”). In E.M.D. Sales, Inc. v. Carrera, the Court ruled…
Seventh Circuit Finds FLSA Requires Compensation for Travel Time to Overnight Assignment that Occurs During Employee’s Workday
Recently, the Seventh Circuit Court of Appeals (which covers Illinois, Indiana and Wisconsin) held that, under the federal Fair Labor Standards Act (“FLSA”), nonexempt employees must be compensated for travel time spent away from home when that travel cuts across…
Fifth Circuit Vacates DOL’s Tip Credit Rule
By Haba K. Yono
On August 23, 2024, the Fifth Circuit struck down the U.S. Department of Labor’s (“DOL”) “80/20” rule on how tipped employees must be paid under the Fair Labor Standards Act (“FLSA”). This is welcomed news for employers in the restaurant…
California Implements Employer-Favorable PAGA Reform
Filings under California’s Private Attorneys General Act (“PAGA”) hit an all-time high in 2023, with 7,780 PAGA notices filed with the California Department of Industrial Relations. As an attempt to rein in the tidal wave of PAGA litigation, the California…
DOL Announces AI Guidelines for Employers
On May 16, 2024, the U.S. Department of Labor (“DOL”) reminded employers that they must remain in compliance with federal labor standards as employers adopt artificial intelligence or other automated systems to streamline Human Resources functions in the workplace. The…
How Transporting Wonder Bread Led to a Potential Class Action
Wonder Bread, Butterscotch Krimpets, and Jumbo Honey Buns were featured in a recent unanimous decision by the Supreme Court of the United States. But delicious baked goods were not the order of the day—rather, the Court held that a transportation…
More Ways Qualified Professional Asset Managers Can Lose Exemption
By Publisher
The U.S. Department of Labor (“DOL”) recently published amendments to narrow the Class Prohibited Transaction Exemption (PTE), also known as the qualified professional asset manager (“QPAM”) Exemption. The exemption allows QPAMs to manage multiple investments, notwithstanding general prohibitions under the…
Michigan's Right to Work Legislation: A Defining Policy Shift
Michigan historically has been at the forefront of labor law changes. This remains the case with the implementation and recent repeal of Michigan’s right-to-work legislation. Michigan workplaces are no longer governed by a “right-to-work” law, as the repeal took effect…
U.S. Department of Labor’s Changes Poised to Take Effect in 2024, But Challenges Likely
The U.S. Department of Labor (“DOL”) is poised to make significant changes this year to various wage-and-hour regulations interpreting the Fair Labor Standards Act (“FLSA”). The changes are expansive and include both the already released independent-contractor test and increases to…