On Tuesday, November 22, 2016, Judge Amos Mazzant of the U.S. District Court in the Eastern District of Texas (a 2014 Obama-appointee) issued a preliminary injunction barring implementation of the U.S. Department of Labor’s (DOL) new rule (“Final Rule”) raising the salary threshold for certain overtime exemptions under the Fair Labor Standards Act (FLSA). The
Overtime
21 States Sue the DOL to Stop Implementation of the New DOL Overtime Rule; Congress Weighs in Too
In May of this year, the U.S. Department of Labor (DOL) issued a new rule that raises the federal salary basis for exempt employees to $47,476 per year, effective December 1, 2016. The rule also increases the salary threshold level for the highly compensated employee exemption from $100,000 per year to $134,004 per year, and…
The Ninth Circuit Holds that Cash Payments Made to Employees in Lieu of Health Benefits Must be Included in the Regular Rate for Overtime Purposes under the FLSA
On Thursday, June 2, 2016, the Ninth Circuit issued a long-awaited decision in a case called Flores v. City of San Gabriel, which involved a group of police officers who sued their City employer for three years of unpaid overtime and liquidated damages under the Fair Labor Standards Act. The primary issue on appeal…
California Court Okays Employer’s Formula Used to Calculate Overtime Compensation on Flat-Sum Bonuses
A recent California Court of Appeal decision sheds light on what formula an employer may use to calculate overtime pay for an employee who receives a flat sum attendance bonus in the same pay period it was earned. In Alvarado v. Dart Container Corp., the Court of Appeal held that an employer may follow…
Favorable Decision For Employers Reinforces Importance Of Clear Policies Regarding Off-the-Clock Work
This blog post was authored by Jennifer Palagi.
It is well-settled that an employer must pay an employee wages for all off-the-clock work if the employer had actual or constructive knowledge about the work, even if the work was not authorized. The California District Court of Appeal recently issued its decision in Jong v. …
Are Your IT Employees Paid Correctly?
Public agencies are subject to the Fair Labor Standards Act (“FLSA”), a federal law that regulates payment of wages. Under FLSA certain employees are “exempt,” meaning they are not entitled to be paid overtime. Navigating the FLSA exemptions can be a tricky task, but compliance is critical for employers to prevent liability. Failure to classify…
The Holidays Are a Good Time to Review Regular Rate of Pay Calculations
With employees requesting time off for upcoming holidays and flu season beginning, employers should review holiday pay and sick leave buyback provisions to ensure compliance with the FLSA regular rate of pay requirements. The FLSA requires that an employee who works overtime must be compensated for those overtime hours at a rate of at least…
The Importance of Being Earnest in Classifying Employees Exempt From Overtime under the Administrative, Executive and Professional Exemptions
If you think your agency has classified exempt employees correctly, you may want to take a second look. Last month, we reported on the Department of Labor (“DOL”) audit that resulted in an award of $544,715 in back wages against the San Francisco Giants. Part of that award was because the Giants classified employees as…
The Importance of Adopting the Section 7(k) Overtime Exemption in the Applicable Fire Protection or Law Enforcement MOU
What is the Section 7(k) Exemption?
Unless an overtime exemption applies, the Fair Labor Standards Act (FLSA) requires employers to pay their employees overtime compensation for any work performed in excess of 40 hours in a workweek, defined as seven consecutive days. While the white collar overtime exemptions (administrative, executive and professional) set forth in…
Unpaid Internship Saga Continues
In February we reported on the growing number of lawsuits brought by unpaid interns against companies they worked with for failure to pay regular and overtime wages. The unpaid interns claim that these businesses treated them like employees. Consequently, the interns argue they should have been paid like employees as required by the federal Fair…