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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 […]
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, […]
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 times of short staffing, it’s important to remember exempt employees may lose their exempt status if they spend too much time performing nonexempt work. A recent ruling by the U.S. District Court for the District of Minnesota serves as a stark reminder that exempt employees may perform nonexempt work but only if their primary […]
The federal Department of Labor (DOL) released a final rule on May 20, 2020 addressing whether employers may pay bonuses, commissions, and other types of incentive payments to employees paid under the fluctuating workweek (FWW) method of paying overtime.
It’s HR’s favorite time of the compensation cycle when organizations begin thinking about their salary budgets for the coming year. This year’s planning will take into account the recent release of the new Fair Labor Standards Act (FLSA) overtime rule and, in some states, new or upcoming changes to the minimum wage. Between compliance with […]
The December holidays and year-end pay issues raise a number of wage and hour and leave challenges for employers. Many businesses give holiday gifts or year-end bonuses to their employees. If the bonuses aren’t handled properly, you could expose your company to overtime liability. How does holiday pay affect overtime liability, and what happens if […]
Are certain classes of your employees routinely working overtime? If so, are they properly classified as exempt or nonexempt? Wage and hour class actions continue to be large thorns in the sides of many employers, and this recent decision serves as a good reminder of how critical it is for you to review your overtime […]
By Kevin C. McCormick The U.S. Court of Appeals for the 4th Circuit—which covers Maryland, North Carolina, South Carolina, Virginia, and West Virginia—recently held that a group of exotic dancers are employees under the Fair Labor Standards Act (FLSA), not independent contractors. Consequently, the dancers are entitled to minimum wage for all hours they work […]
by Sean D. Lee The U.S. Supreme Court’s October 2015 term ended in late June 2016. Employers and federal contractors should take note of several recent decisions that affect businesses nationwide across a broad range of areas, including employment discrimination, affirmative action, and overtime exemptions. Green v. Brennan In Green v. Brennan (May 23, 2016), […]