Since 2015, we have been following the saga of the salary threshold for the FLSA’s white-collar exemptions (most of them, at least). In June 2015, the Department of Labor proposed a level of $50,440. When the final rule was published in May 2016, that level turned out to be $47,476. In the
A Zombie Tip Credit Rule: District Court Tries to Bring the 80/20 Guidance Back From the Dead
By Abigail Cahak and Noah Finkel
Seyfarth Synopsis: Even though the DOL abandoned its 20% tip credit rule in November 2018, one federal district judge has refused to defer to the agency, opting to defer to the old guidance instead.
As employers using the tip credit know full well, an individual employed in dual occupations–one
DOL Issues Opinion Letter Providing Guidance On The Legality Of Certain Non-Traditional Pay
Seyfarth Synopsis: The DOL issued an opinion letter approving a pay model where an employer in the home health field paid its employees at an hourly rate for time spent with patients without additional hourly pay for time spent by the employees traveling to and from patient homes. In that same
Check, Please! DOL Issues Opinion Letter Ending Its 20% Tip Credit Rule
By Abigail Cahak and Noah Finkel
Seyfarth Synopsis: The DOL has reissued a long-awaited opinion letter withdrawing its previous 20% tip credit rule and making clear that “no limit is placed on the amount of [related but non-tipped] duties that may be performed,” so long as they are performed “contemporaneously with the duties involving direct
WHD Announces Regulatory Agenda
The Department of Labor issued its Fall 2018 regulatory agenda, and the Wage & Hour Division is front and center. New to the agenda is a proposed rule on joint employment under the FLSA. Acknowledging that its regulations have not been updated in 60 years and no longer reflect the realities
Ninth Circuit Issues En Banc Decision Upholding DOL’s 20% Tip Credit Rule; Ball is Now in DOL’s Court
By Abigail Cahak and Noah Finkel
Seyfarth Synopsis: In an en banc decision, the Ninth Circuit reverses its prior panel opinion rejecting the DOL’s interpretation of FLSA regulations on use of the tip credit to pay regularly tipped employees, finding that the interpretation is consistent with the FLSA regulations.
The Ninth Circuit Court of Appeals
Federal Contractor Minimum Wage to Increase
Seyfarth Synopsis: Employees on certain government contracts must be paid in accordance with the requirements of a 2014 Executive Order on Minimum Wage. Effective January 1, 2019, the minimum wage for covered workers is $10.60 per hour, with a minimum direct wage of $7.40 per hour for tipped employees.
In
Introducing the Tip Income Protection Act: Congress’s Misguided Attempt to Turn the FLSA Into a Wage Payment Law
Authored by Cheryl Luce
Seyfarth Synopsis: If it becomes law, a new bill will expand the FLSA’s tip provisions into areas traditionally regulated by state law and create new areas of ambiguity that could be a breeding ground for yet more wage-hour litigation.
We have been covering the saga of a controversial 2011 DOL regulation
Tired of Waiting for FLSA Litigation? Meet PAID, WHD’s Pilot Program For Proactive Employers.
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
“They’re Back. . . Part II: The DOL Reissues 17 Previously Withdrawn Opinion Letters”
By Loren Gesinsky and Jacob Oslick
Seyfarth Synopsis: The DOL has reissued 17 opinion letters it withdrew in 2009. It has also issued two new field assistance bulletins. The DOL’s new openness to answering employer questions, and providing written guidance, harbors good things for both employers and employees.
Hey-la, hey-la, opinion letters and field assistance