California employers will need to reconsider the way they calculate premium payments for meal and rest break violations following a recent decision of the California Supreme Court.  
Continue Reading California Supreme Court Adopts New Premium Pay Calculation for Meal and Rest Break Violations

The legal landscape for defining “employers,” “employees,” and “independent contractors” can be quite dynamic, as this past year has illustrated. In January 2021, the Department of Labor issued an employer-friendly independent contractor rule that would have departed from the agency’s typical balancing test, but it formally withdrew this rule in early May with the change in administration. The DOL’s independent contractor rule is intended to provide guidance to employers when determining whether a worker is an employee or an independent contractor. For employers, this is an important distinction because the FLSA’s overtime and minimum wage protections apply only to employees, not independent contractors. Because courts and employers sometimes struggle to find this line using the economic realities test and its iterations, the Trump-era independent contractor rule aimed to provide a clearer definition of “employee,” as opposed to “contractor.” The DOL has not yet proposed a new independent contractor test, but employers should be mindful that the Biden administration may potentially announce a new rule on this topic.
Continue Reading Recent Shifts In The Independent Contractor v. Employee Classification Rules

Most employers know the Fair Labor Standards Act requires employees to be paid time-and-one-half for all hours worked over 40 in a workweek unless an exemption applies.  But what some employers don’t realize is, for the most-commonly-used overtime exemptions to apply, employees must not only satisfy various “duties” tests, but they must also be paid on a “salary basis” at not less than $684 per week.  Payment on a salary basis means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis.
Continue Reading Upcoming Fifth Circuit Hearing to Address FLSA Day-Rate Issues

Following the flood of employee-friendly legislation during the Virginia General Assembly’s 2020 session, which included a significantly strengthened wage payment law, the 2021 session resulted in the passage of yet another new wage-related law that employers need to be aware of.  This new law – the “Virginia Overtime Wage Act” – goes into effect on July 1, 2021 and will usher in the first overtime pay requirement in Virginia’s history.
Continue Reading Virginia’s New Overtime Law Threatens Double and Treble Damages For Employers Who Don’t Pay Up

Previously, we wrote about a final rule issued by the Department of Labor (DOL) during the last days of the Trump administration addressing the appropriate test for classifying independent contractors under the FLSA. We noted that the future of the rule was in question because it was not set to go into effect until March 8, 2021. This delayed implementation provided an opportunity for the incoming Biden administration to freeze or withdraw the rule.
Continue Reading DOL Freezes Rule on Independent Contractor Classification Test under the FLSA and Withdraws Several Opinion Letters

For over 30 years, most district courts throughout the country have used a two-step conditional certification process to govern certification of collective actions under the Fair Labor Standards Act (FLSA).  But in its recent and game-changing opinion, the Fifth Circuit rejected that two-step process and laid out a stricter framework for FLSA collective actions. 
Continue Reading Fifth Circuit Rejects Two-Step FLSA Certification Process

In the last weeks of the Trump Administration, the Department of Labor published its final rule for determining whether an individual is an employee or independent contractor under the Fair Labor Standards Act. The distinction between an employee and independent contractor is of critical importance because independent contractors are not entitled to the benefits of the FLSA, namely minimum wage and overtime.
Continue Reading DOL Issues Final Rule on Independent Contractor Classification Test under the FLSA

The U.S. Department of Labor recently released a proposed rule seeking to clarify independent contractor vs. employee status under the Fair Labor Standards Act.   The proposed rule seeks to simplify the “economic realities” test currently applied by federal courts in various forms.
Continue Reading Deadline Approaching to Submit Comments on DOL Proposed Independent Contractor Rule

Last month, the United States District Court for the Southern District of New York invalidated portions of the Department of Labor’s Final Rule on joint employment, holding that parts of the Final Rule conflicted with the statutory language of the FLSA and chiding the DOL for failing to adequately explain why the Final Rule departed from the DOL’s own prior interpretations.
Continue Reading Court Invalidates DOL’s Final Rule On Joint Employment Under The FLSA

California recently enacted Assembly Bill 1867, requiring all private employers with 500 or more employees to provide COVID-19 supplemental paid sick leave for their California employees.  Employers must begin providing supplemental sick leave, under the new law, no later than September 19, 2020.  The law will remain in effect until the later of December 31, 2020 or expiration of any federal extension of the Families First Coronavirus Response Act.
Continue Reading California Expands COVID-19 Paid Sick Leave