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 Part II: The DOL Reissues 17 Previously Withdrawn Opinion Letters”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
DOL Bids Adieu to Six-Factor Internship Test
Authored by Robert Whitman
Seyfarth Synopsis: The Department of Labor has scrapped its 2010 Fact Sheet on internship status and adopted the more flexible and employer-friendly test devised by Second Circuit.
In a decision that surprised no one who has followed the litigation of wage hour claims by interns, the US Department of Labor has
Tip Credit Rule to White House
Authored By Alex Passantino
As we’ve reported previously, among the items the Department of Labor identified earlier this year in its Regulatory Agenda was a Notice of Proposed Rulemaking (NPRM) seeking to rescind portions of a 2011 rule that restricted tip pooling for employers who do not use the tip credit to satisfy their
Ninth Circuit Cooks Up Rejection of Servers’ Claims and Sends DOL’s 20% Tip Credit Rule Back to the Kitchen, Creating Circuit Split
Co-authored by Abigail Cahak and Noah Finkel
Seyfarth Synopsis: The Ninth Circuit has created a circuit split by rejecting the DOL’s interpretation of FLSA regulations on use of the tip credit to pay regularly tipped employees, finding that the interpretation is both inconsistent with the regulation and attempts to create a de facto new regulation.
White House to Nominate S.C. Labor Official to Serve as WHD Administrator
Authored by Alex Passantino
The White House announced its intent to nominate Cheryl Stanton to serve as the Administrator of the U.S. Department of Labor’s Wage & Hour Division. Stanton currently serves as the Executive Director for the South Carolina Department of Employment and Workforce. Prior to that, she worked in private practice as a