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As employment law constantly changes, the attorneys at Bean, Kinney & Korman stay up to date on the law as it develops. Our blog topics focus on those changes and what you need to know about them, ranging from severance agreements and the FLSA to social media in the workplace and recent court decisions. If you are interested in having us cover a specific topic, please let us know.

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Posts tagged FLSA.
DOL Explains FLSA Travel Time Payment Rules for Part-Day-Telework Employees

The U.S. Department of Labor (DOL) weighed in again on the question of employee travel time between home and office, i.e., whether or under what circumstances it is compensable under the Fair Labor Standards Act (FLSA) for “an employee who chooses to telework for part of the day and work at the office for part of the day.” When employees must be paid for travel time has been a long-standing source of confusion for employers, as evidenced by the frequency of the U.S. Department of Labor’s (DOL) opinion letters addressing it.

DOL Allows Employers to Electronically Post Required FLSA/FMLA Notices

2020 will undoubtedly be remembered as the year of the COVID-19 pandemic, and as the year that telework gained widespread acceptance in the U.S. While remote work creates several benefits for employers, it also comes with some challenges. In guidance issued this week, the U.S. Department of Labor (DOL) took on one of those issues: Under what circumstances can employers satisfy the mandatory requirement to physically post notices (“continuous posting”) or notify employees individually (“individual notices”) under certain federal statutes – here, the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA)  -- by email or internet or intranet websites?

DOL Issues New Tipped Employee Rules under the FLSA

As a Court of Appeals panel in Richmond pointed out recently, employer FLSA obligations are simple enough for employees who receive a traditional hourly wage but get far murkier and more complicated in the restaurant industry, where employees typically receive compensation through tips or gratuities and employers are permitted to take a “tip credit” to offset a part of the minimum hourly wage due restaurant employees.

DOL Final Rule: Employers Can Pay Bonuses and Premium Pay Under FLSA Fluctuating Workweek Compensation

On May 20, 2020, the U.S. Department of Labor (DOL) announced a new final rule clarifying that employers are permitted to pay bonuses or other incentive-based pay to salaried, nonexempt employees whose hours vary from week to week. Such bonus or premium pay, on top of the fixed salary paid to an employee, are compatible with the use of the so-called “fluctuating workweek” method of compensation under the Fair Labor Standards Act (FLSA). The DOL issued the final rule to highlight the flexibility that employers have to provide bonuses or other forms of additional compensation under the fluctuating work method of compensation and to clear up the differing judicial opinions that have resulted from the DOL’s past guidance. 

COVID-19 FAQS for Employers

As most everyone in the world by now is aware, the Coronavirus Disease 2019 (COVID-19) pandemic is sweeping the United States and rocking the economy. The federal government and nearly all 50 states have declared states of emergency. Many schools and businesses are closed or operating remotely. The pandemic creates unique issues for employers and employees alike. The following FAQs focus on the legal obligations of employers related to COVID-19.

5 Takeaways from DOL’s Proposal to Change FLSA Overtime Rules

On March 7, 2019, the U.S. Department of Labor (DOL) issued proposed rules that would update the salary threshold for the Fair Labor Standard Act’s (FLSA) so-called “white collar” or “EAP” exemptions from overtime. The importance of this issue for employers is tied to the fact that an employee must be paid on a salary basis at or above the DOL’s specified minimum weekly salary level in order to be exempt from the FLSA’s overtime pay requirements.  

What Changes

Currently, employees paid a weekly salary below $455 per week ($23,660 per year) are deemed non-exempt and must be paid overtime for all hours worked over 40 per week.

Editor's note: A federal district court has granted a preliminary injunction blocking the overtime rule from taking effect December 1, 2016.

The U.S. Department of Labor will today unveil new regulations effectuating significant changes to the payment of employee overtime under the federal Fair Labor Standards Act (FLSA). The new rule will raise the salary exemption threshold for overtime pay under the FLSA from its current rate of $23, 660 a year to  $47,476 annually. Also raised under the new rule will be the total annual compensation level above which highly compensated white collar workers will be ineligible for overtime from the current $100,000 to $134,004 a year. The adjustments in the salary exemption thresholds will be the first since 2004 and only the third in the last four decades. The DOL estimates that the new rule will result in overtime eligibility for an additional 4.2 million additional workers nationwide.

The overtime salary exemption thresholds will be subject to automatic adjustment every three years, beginning on January 1, 2020, to raise the threshold to match the 40th percentile of full-time salaried workers in the lowest-wage Census Region. The new rule is set to go into effect on December 1, 2016.

You can view the the DOL's overview and summary of the final rule here.

DOL Releases Proposed FLSA Overtime Regulation Amendments

The Department of Labor (DOL) has just released its long-awaited Notice of Proposed Rulemaking to the white collar exemption under the Fair Labor Standards Act (FLSA). The amendments, if passed, will significantly increase the minimum salary test (from $23,660 to $50,440) for hours worked over 40 in a work week. The amendments will have far-reaching impacts on many industries that will need to reclassify many currently exempt employees and corresponding wage and hour policies.

Upcoming FLSA Changes & Shrinking of the White Collar Exemption: Now is the Time to Reassess Compliance and Update Your Policies

In response to a directive from President Obama, the Department of Labor (DOL) has been working since Spring 2014 to revise the white collar exemption under the Fair Labor Standards Act (FLSA). The revisions are expected to significantly increase the minimum salary test and the primary duties test.

What does the FLSA provide for and what is the white collar exemption?

The FLSA is a federal statute that establishes minimum wage, overtime pay, recordkeeping and child labor standards. The statute requires that most employees be paid, at least, the federal minimum wage and overtime pay at one and one-half the regular rate of pay for all hours worked over 40.

Liability PhotoThe Fair Labor Standards Act (FLSA) establishes requirements regarding the compensation of employees working in the private sector and in federal, state and local government positions. To protect employees, the FLSA prohibits retaliation by employers against employees who complain that their rights have been violated. 

In the past, the FLSA anti-retaliation provision has applied to cases where an employee was fired or discriminated against after filing a formal complaint with a governmental agency, resulting in the commencement of formal proceedings against the employer.  Recently, the U.S. Court of Appeals for the Fourth Circuit found that the anti-retaliation protections could also apply to informal “intra-company” complaints made by an employee.