Seyfarth Synopsis: The U.S. Department of Labor’s Wage & Hour Division issued a proposed rule on the fluctuating workweek method of pay. The proposal continues a regulatory saga started in 2008, and clarifies that payments in addition to the fixed salary are compatible with the fluctuating workweek method of compensation, and
WHD Releases Proposed Rule on Tipped Employees
By: Alex Passantino
Seyfarth Synopsis: The Department of Labor’s Wage & Hour Division announced its long-awaited proposed rule related to the FLSA’s tip provisions. The rule would implement statutory changes passed in March 2018; it also would elevate certain WHD policy guidance into regulation.
The legislative changes come from the Tip Income Protection Act, which
Part 541 Salary Level Increases to $684/Week
By: Alex Passantino
Seyfarth Synopsis: The U.S. Department of Labor announced its final rule updating and revising the regulations issued under the Fair Labor Standards Act (FLSA) regarding the earnings thresholds necessary to exempt executive, administrative or professional employees from the FLSA’s minimum wage and overtime pay requirements. The Department simultaneously announced its formal rescission
Proposed New White Collar Salary Threshold: $35,308
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