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The U.S. Department of Labor Issues Six New Wage and Hour Opinion Letters

The U.S. Department of Labor’s Wage and Hour Division (WHD) issued six new opinion letters this week, covering employer compliance issues under both the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). The opinion letters can be found here. The six new opinion letters address the following issues: Compensability of time […]

Every Minute Counts: Supreme Court Rules Employers Cannot “Skim” Minutes

On Thursday, the California Supreme Court held the federal Fair Labor Standards Act de minimis rule, which limits suits over small increments of unpaid time upon a showing that the bits of time are administratively difficult to record, does not apply to California wage order claims. Limiting its holding to the facts of the case, […]

AM
Former Associate

Legal Alert: U.S. Supreme Court Adopts a “Fair Reading” Standard for FLSA Exemptions

In this week’s L&E Legal Alert, Jennifer Yee and Josh Woodard take a deeper dive into the Encino Motorcars, LLC v. Navarro where the U.S. Supreme Court rejected  the longstanding principle that courts construe FLSA exemptions narrowly and, instead, adopted a “fair reading” standard. For more information, see here.

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Supreme Court Rejects Principle that FLSA Overtime Exemptions Should Be Construed Narrowly

In a 5-4 opinion issued on April 2nd, the United States Supreme Court held that service advisers at car dealerships are exempt from the overtime pay requirement of the FLSA because they are “salesm[e]n . . . primarily engaged in . . . servicing automobiles.”  This ruling is significant for not only the auto industry, […]

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California Supreme Court Deviates From Federal Regulations on Calculating Regular Rate of Pay on Flat Rate Bonuses

Earlier this week the California Supreme Court ruled that when calculating the regular rate of pay for flat rate bonuses an employer must divide the employee’s total pay (including the bonus) by the employee’s total non-overtime hours worked and multiply the result by 1.5 for each overtime hour worked. This diverges from the federal regulations […]

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BM
AD

DOL Adopts Primary Beneficiary Test to Assess Whether Interns are Employees

The U.S. Department of Labor (“DOL”) abandoned its former test for assessing whether interns qualify as “employees” under the Fair Labor Standards Act (“FLSA”). Aligning itself with several appellate courts, including the Ninth and Second Circuits, the DOL now embraces a seven-factor “primary beneficiary” test to distinguish employees from bona fide interns. The test enables […]

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Ninth Circuit Holding Regarding FLSA Minimum Wage Compliance

A unanimous Ninth Circuit Panel on November 15, 2017, joined other circuits in holding that the appropriate methodology for determining minimum wage compliance under the Fair Labor Standards Act during any workweek is by calculation of the pay earned during the entire workweek, rather than the pay earned in each individual hour of the workweek. […]

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JR
Of Counsel

Federal Court strikes down Overtime Rule

A Texas federal district court judge invalidated the Department of Labor’s (“DOL’s”) controversial Final Rule that would have made more than 4 million currently exempt employees eligible for overtime. On May 23, 2016, the DOL issued its Final Rule which sought to increase the minimum salary threshold to qualify for the “white collar” overtime exemption […]

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JL
Partner

Arizona Legislative Assistance in Correctly Classifying Workers as Independent Contractors

Completing and complying with a government supplied “Independent Contractor Certificate” presumptively establishes an independent contractor legal relationship for Arizona state law purposes. See A.R.S. § 23-1601(B).  The effect of this Arizona form Independent Contractor Certificate on federal law questions involving independent contractor status is yet to be determined. For more information, click here.

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BH
Of Counsel