Seyfarth Synopsis: On September 11, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit held in Mayfield v. U.S. Department of Labor that the Secretary’s salary tests for evaluating overtime exemptions are valid and do not exceed the Department of Labor’s authority under the Fair Labor Standards Act (“FLSA”).
Robert Mayfield, a Texas-based fast-food purveyor, challenged
Continue Reading Fifth Circuit Ruling: 2019 Salary Threshold Increase Did Not Exceed Authority
Seyfarth Synopsis: The DOL’s revised overtime exemption rule takes effect today, July 1, 2024. While several lawsuits are challenging the rule, a last-minute injunction was ultimately granted for only one employer: the State of Texas. The rule is in effect for all other businesses, including businesses in Texas.
In April 2024, the U.S. Department of Labor published its
Continue Reading Injunction Party of One: New OT Rule Takes Effect for All Employers…Except the State of Texas
Seyfarth synopsis: Today, the U.S. DOL unveiled its final overtime rule. The rule significantly increases the minimum salary for so-called “white collar” employees to be exempt from the federal FLSA’s overtime pay requirements. This development requires attention from virtually all employers.
The DOL’s final overtime rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees
Continue Reading U.S. DOL Releases Final Overtime Rule—Effective July 2024
By Kevin M. Young and Scott P. Mallery
Seyfarth Synopsis. Democrats in the U.S. House and Senate have reintroduced a bill to increase the federal minimum wage to $15 for virtually all non-exempt workers. While the “Fight For Fifteen” has made several trips to Congress before, the circumstances are much different this time around. While the proposed law likely won’t
Continue Reading The Fight For $15 Returns to Congress
By Ariel Fenster and Kevin Young
Seyfarth Synopsis. In the final hours of 2020, the U.S. DOL’s Wage & Hour Division issued an opinion letter containing guidance on the compensability of time commuting to the office, or tending to personal matters, for employees primarily working from home. While fact-specific, the letter offers a glimpse into WHD’s current thinking on increasingly
Continue Reading New Year’s Gift From WHD: Guidance on Continuous Workday Rule in the WFH Era
Authored by Kevin Young and Christina Meddin
Seyfarth Synopsis: Some states are known for setting high legislative bars with respect to employment rights and protections (looking at you, California). The State of Georgia isn’t one of them. Earlier this month, however, the Peach State broke its mold by enacting one of the most stringent lactation break laws in the country.
Continue Reading Not a Typo: Georgia Enacts a Stringent Employment Law
By: Kevin M. Young, Kerry M. Friedrichs, and Ryan McCoy
Seyfarth Synopsis: On Tuesday, the Third Circuit issued a decision rejecting the U.S. DOL’s general position that incentive bonuses paid to employees by a third-party must be factored into overtime pay. While the decision merely endorses a more tempered “it depends” view, it provides welcome news and guidance
Continue Reading Does a Third-Party’s Bonus Payment to Your Employees Require You to Pay More Overtime? Citing Clark Griswold, Appeals Court Says Not Necessarily.
Co-authored by Alex Passantino and Kevin Young
Seyfarth Synopsis: On April 1, 2019, the U.S. DOL announced a proposed rule to clarify joint employment under the FLSA. The rule would establish a four-factor balancing test for joint employer status. It also rejects various factors that have fueled recent litigation, e.g., a worker’s economic dependence on a potential joint employer, the potential employer’s business model, and its unexercised power over the worker.
This is the third proposed rule that the DOL has issued in a month’s time. Like the other proposals (concerning overtime exemptions and the regular rate of pay), this rule—if adopted—should provide welcome clarity for many businesses. This is particularly true for those most targeted by joint employment litigation, such as franchisors, staffing agencies, and businesses with subsidiaries or affiliates.Continue Reading April Rules: DOL Continues Rulemaking Sprint With New Proposed Joint Employment Standard
Co-authored by Christopher Truxler and Coby Turner
Seyfarth Synopsis: Earlier this month, a California federal court dismissed the misclassification claims of 7-Eleven franchisees on the pleadings, finding they did not and could not plead facts sufficient to show that they were employees of their franchisor.
All is well with one of America’s most beloved convenience stores. In October 2017, four
Continue Reading Oh Thank Heaven, Franchisees Not Employees of 7-Eleven!
Co-authored by Alex Passantino and Kevin Young
On Tuesday, the Wage & Hour Division announced a new program for resolving violations of the FLSA without the need for litigation. The Payroll Audit Independent Determination program—or “PAID”—is intended to facilitate the efficient resolution of overtime and minimum wage claims under the FLSA. The program will be conducted for a six-month
Continue Reading Tired of Waiting for FLSA Litigation? Meet PAID, WHD’s Pilot Program For Proactive Employers.