Category Archives: DOL News

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21 States File Suit Challenging the DOL’s New Overtime Rule

Yesterday, a group of 21 states filed a lawsuit in the United States District Court for the Eastern District of Texas challenging the Department of Labor’s new overtime rule, which is set to take effect on December 1, 2016.  The group challenging the rule is led by Texas and Nevada, and includes the following states:  Alabama, Arizona, … Continue Reading

The Supreme Court Shoots Down DOL Regulations, But Declines To Rule Whether Service Advisors are Exempt From Overtime Pay Requirements

Yesterday, the United States Supreme Court issued its long-awaited decision in the Encino Motorcars, LLC v. Navarro case, that many hoped would resolve the issue as to whether Service Advisors at auto dealerships are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA).  As we reported back in January 2016, the Supreme … Continue Reading

Continued Controversy Surrounding The Proposed New Overtime Rule

Since June, we have written a number of posts covering the Department of Labor’s proposed new overtime rule (see our posts here), and the more than doubling of the salary level threshold for white collar exempt positions. The proposed increase in the salary threshold was quite polarizing and resulted in nearly 300,000 comments. Despite the … Continue Reading

Supreme Court Agrees to Hear Service Advisor OT Pay Split

As we reported back in October 2015 a car dealership, Encino Motorcars, petitioned the Supreme Court to “restore uniformity” to the enforcement of legal precedent and hold that service advisors are exempt from the FLSA’s overtime requirements.  On Friday, the Supreme Court agreed to hear the case and hopefully resolve the issue once and for all … Continue Reading

The NLRB's New Target: FLSA Settlement Agreements

The National Labor Relations Board (“NLRB” or the “Board”) has once again weighed in on employer use of confidentiality and non-disparagement language, this time in the settlement arena. Recently, the NLRB withheld its approval of a global settlement of Fair Labor Standards Act (“FLSA”) claims and Board charges, stating its objection to the negotiated non-disparagement … Continue Reading

New Exemption Rules May Be Delayed To Late 2016

Waiting is the hardest part.  Ever since the Department of Labor issued its proposal to substantially increase the minimum salary level needed to classify an employee as an exempt executive, administrative or professional employee, employers have been asking when the new rules will take effect. This is not an academic question: many organizations have long … Continue Reading

Friendly Reminder: The Computer Employee Exemption

We recently received a question regarding whether an employer could classify certain IT employees as exempt under the Computer Employee exemption. With the long-awaited final DOL overtime rules for the white collar exemptions yet to make their appearance, we thought this would be a good opportunity to switch gears and remind you of the general … Continue Reading

DOL to Pay $1.5 Million to Employer for Bad Faith Investigation

In an interesting turn of events and what I’m sure will be gratifying for some employers, the Department of Labor has agreed to pay Gate Guard Services $1.5 million to settle claims involving the DOL’s overly aggressive and bad faith tactics in investigating whether Gate Guard’s gate attendants were improperly classified as independent contractors under … Continue Reading

DOL Will Not Extend Comment Period on Proposed Regulations

In July, we wrote about the Department of Labor’s proposed changes to the regulations governing the white collar exemptions of the Fair Labor Standards Act. The current regulations governing these exemptions—executive, administrative, and professional—include a salary basis test by which to determine if an employee meets one of these exemptions. The salary basis test currently … Continue Reading

Webinar Follow-Up: New DOL Overtime Exemption Rules and Independent Contractor Guidance

Thanks to all of our clients and friends for such a great turnout at today’s webinar on the new DOL overtime exemption rules and the Administrator’s Interpretation on independent contractors. In case you missed the webinar, or if you just want to go back and review the materials and recording, you can find both an … Continue Reading

DOL Outlines New "Economic Dependence" Test for Independent Contractors

The DOL continues to deliver on the promise of its busy summer. This morning, Department of Labor Wage and Hour Division (WHD) Administrator Dr. David Weil announced a new, 15-page Administrator’s Interpretation in a DOL blog post that stressed the FLSA’s expansive definition of employment and reinforced the WHD’s position that most workers qualify as … Continue Reading

The DOL's Surprising Conclusion about Employers in the New FLSA Regulations

Last week, the Department of Labor’s Wage & Hour Division (WHD) finally announced its long-promised proposal to amend the Fair Labor Standards Act (FLSA) Regulations and, in particular, those governing the “white collar” exemption for executive, administrative, and professional employees. For our comprehensive discussion of the changes in the DOL’s Notice of Proposed Rulemaking (NPRM), … Continue Reading

The New FLSA Regulations: What Changed, What Didn't, What's Next for Employers

Note: This post relates to the Department of Labor’s proposed rules issued in 2015. For a summary of the final rules issued May 18, 2016, please check out this post, and see this post for a link to the recording of our May 23, 2016 webinar. This morning, the Department of Labor’s Wage & Hour Division … Continue Reading

New FLSA Regulations Released, Salary Threshold Doubled

UPDATED: For an updated entry, click here. Since last spring, we have been following developments in the oft-delayed Fair Labor Standards Act (FLSA) regulations rewrite by the Department of Labor (DOL). The Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) has now completed its review, and the Department of Labor finally … Continue Reading

Are You in the DOL's Crosshairs? Statistics Give Warning to Retail, Hospitality Employers

Last week, the Department of Labor posted a new blog post from Wage and Hour Division Administrator Dr. David Weil highlighting the DOL’s wage and hour enforcement efforts. Dr. Weil’s statement that the DOL recovered “over $240 million owed to more than 270,000 workers nationwide in fiscal year 2014 alone” sent me digging in the … Continue Reading

DOL Wage and Hour Division to "Clarify" FLSA Independent Contractor Definition

The DOL’s Wage and Hour Division expanded its already busy agenda, announcing upcoming guidance on the Fair Labor Standards Act’s definition of “independent contractor.” WHD Administrator David Weil, speaking at New York University School of Law’s 68th Annual Conference on Labor, disclosed during his keynote address that his office would soon issue an “Administrator’s Interpretation” … Continue Reading

DOL Sends New FLSA Regulations to OIRA for Final Review Before Draft Publication

Since last spring, we have been following developments in the oft-delayed Fair Labor Standards Act (FLSA) regulations rewrite by the Department of Labor (DOL). Yesterday, we received word that the DOL has completed a draft of the new regulations and sent them to the Office of Management and Budget’s Office of Information and Regulatory Affairs … Continue Reading

Department of Labor Says "Transparent Government" Begins With...Transparent Data about Businesses?

We’ve reached almost the end of April, and the long delayed, new FLSA regulations are still percolating somewhere in deep inside the DOL. So what has the agency been up to instead? Last month, as part of the annual “Sunshine Week” spotlighting the importance of open government, freedom of information, and the public’s right to … Continue Reading

DOL Secretary Tells Congress New FLSA Regulations Are Delayed, Outlines Department Priorities

Last week, Secretary of Labor Thomas Perez testified during a hearing held by the House Education and Workforce Committee to discuss President Obama’s budget proposal for the Department of Labor. Secretary Perez’s testimony touched a wide range of topics, most notably the oft-delayed FLSA regulations rewrite we have discussed in recent months. The DOL Secretary … Continue Reading
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