Massachusetts’ highest court, The Supreme Judicial Court, recently issued its long awaited decision in Sullivan v. Sleepy’s LLC, SJC-12542, in which the SJC responded to certified questions of first impression from the United States District Court for the District of Massachusetts. The case is particularly important for businesses which pay employees through commissions or draws (i.e., advances on commissions), particularly in the retail context where the ruling departs considerably from federal law.
Continue Reading Massachusetts Retail and Inside Salespersons Are Now Entitled to Overtime and Sunday Premium Pay

The Sixth Circuit recently affirmed a district court’s summary judgment decision finding that an employer properly had paid employees using the “fluctuating workweek” method and dismissing plaintiffs’ claims for underpayment of wages under the Fair Labor Standards Act. 
Continue Reading Sixth Circuit Affirms Employer’s Use of Fluctuating Workweek

On February 1, 2018, the United States District Court for the Eastern District of Pennsylvania dismissed an overtime class action suit brought on behalf of a group of former democratic campaign workers for their work during the 2016 presidential election.  In dismissing the overtime suit, the Court relied on an often-overlooked defense to the Fair Labor Standard Act.
Continue Reading Campaign Workers’ Overtime Suit Dismissed Based on Purely Local Activities

On November 22, a federal judge in the Eastern District of Texas preliminarily enjoined the Department of Labor’s final overtime rule, which would have expanded overtime eligibility to executive, administrative, and professional employees making less than $47,476 per year, who were previously exempt from the Fair Labor Standards Act’s requirements under its white collar exemption. The final rule was scheduled to go into effect on December 1, 2016.
Continue Reading DOL Overtime Rule Preliminarily Enjoined; No Employer Action Required By December 1st

On November 16, 2016, Judge Amos L. Mazzant, heard more than three hours of oral argument from a group of 21 States (“State Plaintiffs”) challenging the Department of Labor’s new overtime rule. Following the hearing, the motion for a preliminary injunction of the rule was taken under advisement and a ruling is forthcoming on Tuesday, November 22,2016. Judge Mazzant’s pointed criticism of the rule during argument suggests employers may have reason to be optimistic.
Continue Reading Federal Judge in Texas Appears Poised to Grant Injunction Putting Labor Department’s Overtime Rule On Hold

As we previously reported, the Department of Labor (“DOL”) issued a proposed rule expected to significantly increase the number of employees who are eligible for overtime. Most notably, the proposed rule seeks to increase the minimum salary threshold for exempt workers from the current level of $23,660 to $50,440.
Continue Reading DOL’s New Overtime Rule To Be Released In Spring Of 2016

On July 15, 2015, the Department of Labor (“DOL”) issued guidance which it claims is designed to reduce the misclassification of employees as independent contractors under the Fair Labor Standards Act (“FLSA”).
Continue Reading DOL Issues Guidance Claiming Most Workers Are Employees – Not Independent Contractors – Under the FLSA