The Fair Labor Standards Act (FLSA), administered by the U.S. Department of Labor, governs minimum wage, overtime pay, and recordkeeping and youth employment standards affecting employees in the private sector and federal, state, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, … Read more
Overtime can be a point of contention and confusion between employers and employees. However, it remains part and parcel of business operations. From how it’s paid to the concept of mandatory overtime, which employers can require from their employees, it can be tricky to understand what’s allowed and what’s not. It is imperative, then, that … Read more
A recent Fifth Circuit case highlights the complexity of the Fair Labor Standards Act (FLSA) and should alert employers to the dangers of running afoul of FLSA rules. Although the plaintiffs lost the case, Escribano v. Travis County, Texas, No. 19-50236 (5th Cir. Jan. 10, 2020) shows how complicated the application of the FLSA can … Read more
Recently the Department of Labor (DOL) announced the promulgation of long-awaited overtime rules, which have been detailed previously on this blog. There is more in the works at the DOL than those new rules, however. Here are some of the ongoing and forthcoming developments from the department. Restaurants The DOL is continuing to pursue enforcement … Read more
After a long review process, The Department of Labor (DOL) has issued a final overtime rule that will take effect on January 1, 2020. This final rule is likely to increase the number of workers who are eligible for overtime. A news release summarizes the main points of the federal overtime law, which has not … Read more
For many employers, summer means interns. But for human resource professionals, this means staying in compliance, whether the interns are paid or unpaid. While the Department of Labor (DOL) has issued a fact sheet on internships, the document does not offer detailed guidance on how to stay in compliance. The test itself, however, does imply … Read more
In October 2018, Amazon announced that it would pay its employees $15 an hour, starting November 1. The rate applies to “all full-time, part-time, temporary (including those hired by agencies), and seasonal employees across the U.S.,” according to an announcement made by the company. The wage increase also applied to Whole Foods and other subsidiaries. … Read more
The cost of not paying employees minimum wage and overtime can be significant. For example, in February, California’s Department of Industrial Relations issued a news release concerning a fine of $519,706 levied against a restaurant for paying below the minimum wage. According to the release, “The Labor Commissioner’s investigation found that…workers were paid a flat rate … Read more
Salary Deductions for Exempt Employees The Fair Labor Standards Act (FLSA) exempts certain classes of employees from their overtime payments requirements. The most common of these are administrative, executive, and professional employees. To be classified as exempt, employees must usually satisfy two criteria or tests – the salary basis test and duty tests. To meet … Read more
School is out for summer, and kids are wanting to make money. Hiring young people is a big responsibility not only due to their immaturity and endless amounts of youthful energy but also because of state and federal child labor laws. It’s a good idea for you to review the laws and to train your … Read more