Forthcoming Changes to Clarify What Is and Is Not Included in the FLSA Regular Rate

In March of this year, the United States Department of Labor (“DOL”) issued the first proposed rule within half a century that would amend the way overtime is calculated under the Fair Labor Standards Act (“FLSA”). Facially simple but devious in the details, nearly every employer is familiar with the FLSA’s “regular rate” used to …read more »

The Four Most Common Errors When Tracking Employee Work Time and What to Do About Them

Many of the rules of the Fair Labor Standards Act and similar state laws regarding the payment of non-exempt employees are notoriously complex and are often misapplied.  Even seemingly minor errors can become costly if they apply to groups of non-exempt employees and become the subject of a Department of Labor investigation or class action …read more »

Businesses Should Update Indemnity Agreements to Protect Against Contractor Lawsuits

In the past decade, many businesses have significantly improved compliance under the Fair Labor Standards Act (“FLSA”) and other employment laws when it comes to their own employees. At the same time, many workers who provide skilled services to those businesses now do so as independent contractors, often based on service agreements between businesses and …read more »

Can the FLSA’s White-Collar Exemptions Apply to Employees Paid on a Daily, Hourly, or Shift Basis?

To qualify for the “white collar” exemptions under the FLSA, an employee must be paid on a “salary basis” and meet a job duties test.  To meet the salary basis test, the majority of exempt employees are paid a guaranteed weekly salary that does not vary depending on the number of hours they work.  However, …read more »

Department of Labor Clarifies the Compensability of Travel Time

Determining the circumstances in which “travel time” must be paid to non-exempt employees is often a vexing issue when employees work at customer locations rather than a fixed worksite.  A recent Department of Labor Wage and Hour Division opinion letter sheds light on some of the difficult questions that arise with respect to such employees.  …read more »

FMLA vs. FLSA: The DOL Weighs in on Whether Employers Need to Compensate FMLA-Protected Rest Breaks

After a nine year hiatus, the Wage and Hour Division of the Department of Labor (“DOL”) recently resumed its longstanding practice of issuing opinion letters to help employers in interpreting laws like the Family and Medical Leave Act (“FMLA”) and the Fair Labor Standards Act (“FLSA”). In an April 12, 2018 press release issued by …read more »

Addressing Co-Employment Risks When Drafting Agreements with Staffing Agencies

Companies use staffing agencies for a variety of important purposes, such as to temporarily replace an employee on leave, obtain specialized expertise for a project, or to outsource a function that the company does not ordinarily perform.  However, recent lawsuits, agency guidance, and agency investigations have highlighted the co-employment risks that exist when an employer …read more »