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The Fair Labor Standards Act (FLSA) requires employers to pay overtime to nonexempt employees based on their regular pay rate and the number of hours worked in a workweek. While this sounds straightforward on paper, employers commonly fail to realize that nondiscretionary bonus payments must be included in calculating the regular pay rate and, ultimately, […]
Employer interests are sounding off against the U.S. Department of Labor’s (DOL) proposal for a dramatic increase in the overtime threshold, but employers are still advised to take a close look at their exempt workforce to make sure their status is justified. The DOL released its long-awaited proposed rule on August 30. If finalized, the […]
In a significant move that promises to reshape the U.S. labor landscape, the Biden administration has proposed a new rule intended to extend overtime pay eligibility to an additional 3.6 million workers. It’s a proposal the marks the most substantial increase in such provisions in recent decades and revives an initiative from the Obama era. […]
The U.S. Supreme Court recently ruled that a daily-rate worker who earned over $200,000 annually wasn’t exempt from the Fair Labor Standards Act’s (FLSA) overtime requirements. In an opinion authored by Justice Elena Kagan, the Court held that compensation based on a daily rate didn’t satisfy the “salary basis test,” which is required for an employee to […]
A common question from employers is whether they can use a “comp-time” system instead of making monetary overtime payments. The answer (unless you are a public-sector employer) is almost always “no.” A company in Asheville found that out the hard way when it was investigated by the U.S. Department of Labor (DOL) for alleged failure […]
In our latest installment of Ask the Expert, brought to you by the team of industry experts at HR Hero®, we look at a recent question from a subscriber regarding an employer’s ability to require workers to work overtime. Let’s hear what our team of HR experts have to say! Q: Can employees be mandated to […]
In our latest installment of Ask the Expert, brought to you by the team of industry experts at HR Hero®, we look at a recent question from a subscriber regarding additional non-exempt compensation for an employee who recently moved into an exempt position. Q: We have a non-exempt employee who recently accepted an exempt position with our […]
Temporary staffing firms may qualify as “retail or service establishments” and therefore may be able to apply the Fair Labor Standards Act’s (FLSA) “retail sales” overtime exemption to some of their employees, according to a recent opinion letter from the U.S. Department of Labor (DOL).
Employers must include COVID-19 incentive payments, such as hazard pay, in an employee’s regular rate for calculating overtime payments, the U.S. Department of Labor (DOL) stated in recent guidance.
Most employers are well aware of their obligations under the Fair Labor Standards Act (FLSA)—primarily, the requirement to pay at least minimum wage and pay overtime for hours worked in excess of 40 in a given workweek. These apply to a large percentage of employees, unless they fall under one of the various exemptions.