By: Michael Afar

Seyfarth Synopsis:  Calculating the correct “regular rate of pay” for overtime hours under California law, in order to properly factor in certain types of bonuses, can give nightmares to even the most diligent employers.  The Ninth Circuit, however, recently held that a potentially wrong formula for calculating overtime is not, by itself, enough to justify class certification—rather,
Continue Reading Do Improper Overtime Pay Calculations Automatically Equal Class Certification? Don’t Bank On It, Says The Ninth Circuit

By: Brian A. Wadsworth and Andrew L. Scroggins

As COVID-19 cases surge again in the United States, state and local governments continue to recommend or require remote work arrangements, and some employers have already announced plans to permit remote work to continue well into 2021 and even beyond.

Remote work is not new, and many of its challenges such as
Continue Reading As COVID-Driven Remote Work Arrangements Continue, Wage and Hour Compliance Challenges Grow

By: Victoria Vitarelli and Gena Usenheimer

Seyfarth Synopsis: In a clarification of the administrative/production dichotomy, the U.S. Circuit Court of Appeals for the Seventh Circuit has held that whether a duty is exempt under the FLSA’s administrative exemption may turn on the employee’s involvement in the enterprise’s “primary” or “central revenue generator.”

As our readers are aware, the United
Continue Reading An Employee Not Actually Engaged in the Company’s Core Function—its Primary Revenue Generator—Can Be Administrative Exempt

By Barry J. Miller and Hillary J. Massey

Seyfarth Synopsis: The Second Circuit has affirmed summary judgment for the employer, Aetna, in an exempt misclassification overtime claim brought by a nurse reviewer. Agreeing that the plaintiff was properly classified as a “professional” employee and thus exempt from the FLSA, the Second Circuit explained that clinicians who do not directly provide
Continue Reading 2nd Cir. Rules Utilization Reviewer Was Exempt “Professional”

By: Alex Passantino

Seyfarth Synopsis: On January 15, 2020, the Department of Labor’s Final Rule on regular and basic rates of pay will take effect. This series will explore the various issues implicated by the Department’s changes. Part I addresses the Department’s changes to Part 548 of the regulations, Authorization of Established Basic Rates for Computing Overtime Pay.

In
Continue Reading It’s All About Those Rates (Part I): Basic Rate of Pay

By Jacob Oslick

Seyfarth Synopsis: Does Pennsylvania law permit the fluctuating workweek (“FWW”) method of paying overtime? The Pennsylvania Supreme Court has answered that question with a resounding “No, but…”

In Chevalier v. Gen. Nutrition Centers, Inc., the Supreme Court finally tackled whether the Pennsylvania Minimum Wage Act (“PMWA”) aligns with the federal Fair Labor Standards Act, and permits
Continue Reading The Pennsylvania Supreme Court Finally Kills The Fluctuating Workweek Doctrine in Pennsylvania, Ruling That The “Half-Time” Method Violates The Minimum Wage Act

By: Kyle Petersen and Ariel Fenster

Seyfarth Synopsis: A recent decision by the Southern District of New York clarifies common questions arising from the use of the fixed salary for a fluctuating workweek method of compensation (the “FWW”): (1) Do isolated pay deductions undermine the fixed salary requirement; (2) Must the employee’s hours fluctuate above and below 40 hours; and
Continue Reading Fixed Salaries, Fluctuating Hours, and Beyond: A Federal Court Addresses Common Questions About the Fluctuating Work Week Method of Compensation

Co-authored by Kevin Young and Kara Goodwin

Even as FLSA litigation has surged to historic highs, it is rare to see a nefarious violation of the Act by a manager or supervisor. Far more prevalent, it seems, are stories of managers who, while intending to afford employees freedom and flexibility, instead trip over one of many hurdles scattered across the
Continue Reading The Road to FLSA Litigation is Often Paved With Good Intentions

Co-authored by Julie Yap and Michael Cross

Seyfarth Synopsis:  The California Court of Appeal affirmed a denial of class certification on the ground that the plaintiff’s expert report failed to establish claims could be determined on common evidence. The ruling highlights that trial courts are permitted to weigh conflicting evidence related to whether common or individual issues predominate. While expert
Continue Reading Battle of the Experts on Class Certification: A Win for Employers

Authored by Ryan McCoy

Seyfarth Synopsis: On May 2, 2017, the House of Representatives passed a bill amending the Fair Labor Standards Act to permit private employees to choose to take paid time off instead of monetary overtime compensation when working more than 40 hours in one week. Passed along party lines in the House, the bill would still
Continue Reading Cash Now or Paid Time Off Later? House Passes FLSA Amendment to Permit Private Sector Comp Time