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With its 2024 Loper Bright decision, the U.S. Supreme Court rejected the long-standing doctrine of Chevron deference, under which courts deferred to federal agencies’ interpretation of a statute when the text was ambiguous. The decision is already affecting numerous federal regulations. 5th Circuit Considering Whether to Remand Trump OT Case The U.S. 5th Circuit Court […]
Hiring a new employee takes time—for example, time completing paperwork before the start date, as well as time reviewing policies and procedures and completing training. But how much of that time is considered compensable under the Fair Labor Standards Act (FLSA)? Orientation and Onboarding The FLSA generally counts a new hire’s time spent in orientation […]
On June 14, the U.S. Supreme Court agreed to decide an important Fair Labor Standards Act (FLSA) question—namely, whether an employer claiming an exemption from overtime needs to prove it by “clear and convincing” evidence (a very high standard) or by a preponderance of the evidence (a lower, easier standard to meet). The decision is […]
On April 23, 2024, the U.S. Department of Labor (DOL) issued its highly anticipated final rule that will raise the standard minimum salary level needed for most white-collar exempt employees on July 1, 2024, and then increase it again beginning January 1, 2025. The final rule will also increase the total compensation minimum for highly […]
Over the past seven years, the U.S. Department of Labor (DOL) has attempted to increase the number of exempt employees who are eligible for overtime under the Fair Labor Standards Act (FLSA). On April 23, 2024, the DOL announced a final rule regarding the salary threshold required to exempt a salaried executive, administrative, or professional […]
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 […]
The fundamental premise of the Fair Labor Standards Act (FLSA) is that all employees are covered by its base requirements. This includes being paid minimum wage for every hour worked and time and one-half for all overtime. The FLSA is a statute of inclusion, which means all employees are covered unless they fit within specific, […]
When determining how to compensate nonexempt employees, employers have a variety of options. Paying an hourly rate is certainly the most common, but other methods include salary, commissions, daily rates, and piece-rate pay (sometimes referred to as piece work). Piece-rate pay refers to a system in which employees are paid a fixed amount per item […]
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 […]