You may have missed it, but Secretary of Labor Marty Walsh perked up some ears last week when he discussed possibly raising the FLSA salary threshold for certain exempt employees. In testimony before a Congressional committee, Secretary Walsh stated that the current amount, $35,568, is “definitely” too low and hinted that his department may seek
Putting the Brakes on the Gig Economy? Biden DOL Delays Effective Date of Final Rule on Independent Contractor Status
On January 7, we wrote about the DOL’s Final Rule on Independent Contractor Status that was slated to take effect on March 8, 2021. Many employer and business groups applauded the Final Rule because its focus on the economic reality test was intended to make it easier for employers to classify certain workers as independent
Don’t Let Your Employee’s “Unpaid” Meal Breaks Turn into a Costly Mistake for You
An unpaid meal break can become a very expensive lunch for an employer, but there are ways to comply with the Fair Labor Standards Act (FLSA) to try and minimize the risk.
Identifying the Potential Problem
The problem that results from unpaid meal breaks typically arises like this:
- Nonexempt employee clocks out for lunch, or
Who’s the Boss? U.S. DOL Issues Final Rule on Independent Contractor Status
Employers often ask, “Can this worker be an independent contractor?” The answer is often unclear due to the different tests for employee versus independent contractor status, which vary between federal circuit courts and from state to state. In the end, the answer typically depends on how much risk the employer is willing to take. In
‘Tis the Season — Year-End Reminder of 2020’s FLSA Salary Threshold Increase and What You May Need to Check Now
Remember last January and the salary threshold change the Department of Labor rolled out for salaried exempt and highly compensated employees under the FLSA? As the end of the year approaches, you might need to revisit the DOL’s salary threshold increases that took effect January 1, 2020. In January, we anticipated that this would be
New Reality? DOL Publishes Proposed Rule on Independent Contractor Status
Whether a worker is an employee covered by the Fair Labor Standards Act (FLSA) (and potentially entitled to overtime pay or benefits) or an independent contractor who is not covered has been the center of an ongoing legal battle for many years. Most recently, it has been a key issue for those in the growing
Seventh Circuit Scrubs Attempted Snub of Arbitration of Grubhub Paystub Hubbub
There have been many examples of the tension between the “gig economy” and traditional labor laws. Most of the companies like Uber or Grubhub choose to classify their drivers as independent contractors instead of employees, which eliminates obligations like overtime under the Fair Labor Standards Act. The Seventh Circuit this week dealt with such a
There Is More to This than Meets the Eye: Why an Under-the-Radar DOL Wage and Hour Bulletin Is Good News for Employers
The U.S. Department of Labor issued a Field Assistance Bulletin on June 24, 2020, announcing that it will not routinely assess pre-litigation liquidated damages as part of the settlement process for claims under the Fair Labor Standards Act. Although this announcement has largely gone “under the radar,” it actually has historic significance. The bulletin is
Window Washers and Telegraph Operators Beware: DOL Eliminates Specific Retail and Non-Retail Examples Under Overtime Exemption Rule
For those of you craving a non-COVID-19 issue to chew upon, the Department of Labor opened the floodgates of debate by withdrawing the partial lists of establishments that could either be “recognized as retail” or “having no retail concept” under the FLSA’s overtime exemption for certain commissioned employees. Of course, we are being sarcastic (kind
Unpaid Interns and a Lunch Order Gone Bad: Jury Returns FLSA Retaliation Verdict Against Martina McBride’s Production Company
A February 2020 jury verdict against county music star Martina McBride’s production company highlights – albeit indirectly – the perils of unpaid internship programs and the issues they can cause under the Fair Labor Standards Act (FLSA).
The Facts
Martina McBride and her husband, John, own Blackbird Studios, which hired Richard Hanson as its operations