Wage and Hour Laws Blog

Latest from Wage and Hour Laws Blog

While stakeholders await final regulations on the white-collar exemptions (a/k/a Overtime Rule 2.0), regular rate, and joint employment, WHD has started sending the White House more proposals – first tackling tips and the tip credit and followed closely by fluctuating workweek.  We recently met with Wage and Hour Division Administrator Cheryl Stanton and other top officials and one thing is clear – the need for employers to prepare ASAP for 2020. Three (Initial) Steps You…
The Labor Department is busy. Yes, that is a stand-alone paragraph. The Notice of Proposed Rulemaking for the “Overtime Rule” was published on March 22, 2019, followed shortly thereafter by proposals regarding regular rate requirements and then joint employer status. As the comment periods for these proposed regulations begin to expire (the comments for the “Overtime Rule” were due on or before May 21, 2019, while the deadline for comments on the…
The comment period for USDOL’s most recent proposal regarding the Fair Labor Standards Act’s white-collar exemptions (Overtime Rule 2.0) has closed. You probably have heard that the proposed salary level test is “too high” and “too low”, and it all feels a bit like déjà vu. In actuality there have been some notable improvements up to this point, though hopefully more to come before finalization. The Rule Has Continued To Evolve We’ve written at length about the…
Differentiations Within The Gig Economy – USDOL’s Take On Independent Contractors The U.S. Department of Labor issued an opinion letter this week confirming that certain service providers referred through a virtual marketplace company are, indeed, independent contractors for purposes of the federal Fair Labor Standards Act. While the conclusion is very fact-specific, its publication provides a broad understanding of how the current USDOL will approach a certain business model or practice when faced with the…
The US Department of Labor (USDOL) today released its much anticipated and significant Notice of Proposed Rulemaking (NPRM) intended to update and clarify the USDOL’s interpretation of joint employer status under the Fair Labor Standards Act.  By way of background, in 2017, USDOL withdrew the previous administration’s guidance on the topic of joint employment, providing a clear sign that changes likely were coming to the USDOL’s analysis of joint employment. What Do You Need To…
The USDOL has proposed to update its guidance (for the most part, currently not regulations) regarding the “regular rate” for purposes of calculating FLSA overtime pay.  The NPRM is intended to update and clarify the FLSA’s requirements regarding the “regular rate” and the (rarely used) alternative “basic rate,” as briefly summarized below. Proposed Rule In A Nutshell In many cases, USDOL intends to better define the scope of certain terms within the statutory exclusions by…
The USDOL’s long-awaited proposed white-collar exemption changes a/k/a Overtime Rule 2.0 has been made available.  Once it is published in the Federal Register, the public will have 60 days to submit comments regarding, among other things, the proposed minimum salary threshold of $679 per week. Proposed Rule In A Nutshell Our Legal Alert will refresh your memory as to how we got here, but this is what you need to know now. The proposed…
We previously summarized the state-level minimum wage increases for 2019.  As reported, New Jersey subsequently set another increase from $8.85 to $10.00 effective July 1, 2019.  We have updated our prior post below, and reference chart, to reflect this addition.  More information regarding the Illinois minimum wage increase (effective in 2020) can be found here. While wage increases can occur any time of the year, January is a common time for employers to increase…
On February 15, the U.S. Department of Labor struck another nail into the coffin of the infamous “20% Rule,” the agency’s prior enforcement position which purported to limit an employer’s ability to take the federal Fair Labor Standards Act tip credit. Under this rule, USDOL would not permit an employer to take the tip credit if the tipped employee spent more than 20% of his or her work time performing “related duties,” meaning duties that…