LexisNexis® Legal Newsroom
California Court Ruling Provides Reminder That Exempt Employees Must Be Paid on a “Salary Basis”

There has been a lot of litigation in California concerning the exempt status of various categories of employees, with plaintiffs' attorneys filing class action after class action seeking to recover four plus years of overtime compensation stemming from employers allegedly misclassifying employees...

Department of Labor Expands Wage and Hour Laws to Home Care Workers

Do you employ home health aides, personal care aides, or certified nursing assistants? Do you pay them less than the minimum wage, or less than time-and-a-half for any hours worked in excess of 40 in a week? If so, then you will need to make a big change to your pay practices beginning January 1, 2015...

Must Employers Pay Salaried Workers for Time Not Worked Under the FLSA?

by Keisha N. Jackson Riddle me (you) this: A salaried employee has worked for your company for just two weeks. He gets sick and misses one full day of work. He has accrued a small number of hours in his leave bank but not enough to cover the whole day. Are you obligated to pay the employee for the...

A Call for the DOL to Fix What Is Wrong With Our Wage-and-Hour Laws

Last week, President Obama called upon the Secretary of Labor to “modernize and streamline the existing overtime regulations.” According to the President , the “regulations regarding exemptions from the Act’s overtime requirement, particularly for executive , administrative ,...

November Target For Proposed Exemption Changes

by John E. Thompson As we reported previously, in March President Obama directed the U.S. Labor Department to "modernize and streamline" its regulations governing the federal Fair Labor Standards Act's Section 13(a)(1) executive, administrative, professional, and "outside salesman"...

LinkedIn’s $6M FLSA Settlement Provides A Good Lesson To Employers

LinkedIn will pay nearly $6 million in back pay and liquidated damages to 359 current and former employees following a Department of Labor investigation, reports the DOL . The employees, reports Business Insider , are commissioned inside salespeople. Typically, inside salespeople are not exempt under...

Wage Deductions in West Virginia

by Joseph U. Leonoro Most West Virginia employers must comply with two wage and hour laws: the federal Fair Labor Standards Act (“FLSA”) and the West Virginia Wage Payment and Collection Act (“WPCA”). Both laws restrict the ability of employers to make deductions from employees’...

Court of Appeals Decision Highlights Risk of (Mis)Classifying Employees

I once handled a wage-and-hour investigation in which the employer, before retaining my services, hired an HR consultant to help classify its employees as exempt or non-exempt. The DOL, however, disagreed, and reclassified half of the company’s employees (with corresponding back pay awards for...

Class Certification Properly Denied to Sephora Workers Suing for Misclassification

On Feb. 26, a California Court of Appeal issued its published decision in Mies v. Sephora , holding that the trial court properly denied class certification in a case alleging certain store employees were misclassified as exempt executives and/or administrative employees. The Court of Appeal originally...

Must Management Justify Treating Exempt Employees As Non-Exempt?

by John E. Thompson For years, The Big Corporation has treated its Department Supervisors as meeting all of the requirements for the executive exemption from the federal Fair Labor Standards Act's minimum-wage and overtime requirements. However, TBC's CEO has now concluded that, for a variety...

FLSA Exemption Changes: Some Compensation Alternatives For Salaried Employees

by John E. Thompson No one knows when the U.S. Labor Department will eventually implement revised definitions of the federal Fair Labor Standards Act's Section 13(a)(1) exemptions (we have covered these developments earlier). But whenever this happens, the new regulations are likely to: ♦...

Let’s Start Treating Salaried Workers Like Salaried Workers

I’ve been thinking a lot lately about what it means to be a salaried exempt employee. The classification is significant, because it enables an employer not to pay the employee overtime for an hours worked over 40 in week. To qualify under most of the FLSA’s exemptions, the employee must be...

Timekeeping for Exempt Employees

by John E. Thompson Should an employer keep records of the time worked by employees who qualify for a federal Fair Labor Standards Act minimum-wage and/or overtime exemption? At the risk of giving the proverbial "lawyer's answer", it depends. Is Timekeeping Mandatory ? First, it is necessary...

They're Heeeeerrrre - New Proposed FLSA Overtime Regs

At long last, today is the day. President Obama will announce the new proposed overtime regulations. You can read the Notice of Proposed Rulemaking here . This will take me some time to read through. After reading the executive summary, the main thrust is raising the minimum salary requirement for...

New Overtime Regulations Will Impact Five Million Workers

For the first time in over a decade, the Department of Labor proposed updates today to the federal Fair Labor Standards Act (“FLSA”) white collar overtime regulations. These changes will impact businesses throughout the United States . The Department estimates that, in the first year, 4.6...

Classifying Employees as Exempt from Overtime May Become a Lot More Costly

This week, the Department of Labor announced proposed changes to the white-collar overtime exemptions under the Fair Labor Standards Act ("FLSA"). If enacted, these changes will significantly impact employers. To qualify as exempt from overtime under federal law, employees currently must be...

DOL’s New Overtime Rules – How Will The Proposed Regulations Impact Your Business?

by Michael B. Steele The speculation is over -- on June 30, 2015, the U.S. Department of Labor (DOL) published its long-awaited Notice of Proposed Rulemaking (NPRM) regarding overtime exemptions, after several missed release dates. The NPRM is in response to President Obama’s March 13, 2014...

60-Day Public Comment Period Commences On Proposed FLSA Overtime Exemption Rule Changes

by Marlene Nicolas , Rachel Tischler and Danielle Thompson* On Monday, July 6, 2015, in response to a March 2014 executive order signed by President Obama, the Department of Labor (“Department”) published a Notice of Proposed Rulemaking (“NPRM”) that will more than double the...

Evaluating the Impact of USDOL's Salary Proposal

by John E. Thompson The U.S. Labor Department has of course proposed a substantial increase in the minimum salary amount required to meet the basic compensation criterion for an executive, administrative, professional, or a derivative exemption under the federal Fair Labor Standards Act's Section...

Document Review Attorneys May Not Be Exempt From OT, Court Says

Uh-oh. Lawyers who do document review may not be exempt from the overtime requirements of the Fair Labor Standards Act, according to a court decision issued yesterday. Large law firms and legal services vendors often hire stables of contract lawyers to do document review in big cases. Sometimes, the...

By Hiking Salary Level For FLSA Exemptions Instead of Revising Complex “Duties Tests,” DOL Takes the Simplest Route to Regulatory Simplification

by Rodney L. Bean When President Obama directed the Department of Labor last year to make its Fair Labor Standards Act overtime regulations simpler for businesses and workers to understand, many observers expected the agency to propose comprehensive revisions to the confusing “duties tests.”...

Comments to Proposed DOL FLSA 13(a)(1) Exemptions Already Being Filed

by John E. Thompson Nearly 1,600 comments have already been posted in response to the U.S. Labor Department's proposals regarding the federal Fair Labor Standards Act's Section 13(a)(1) exemptions. Not surprisingly, there is great concern about the magnitude of the salary increase USDOL has...

Evaluating USDOL's Proposals: Avoid Dangerous Assumptions

by John E. Thompson & Caroline J. Brown Employers are of course continuing to evaluate the impact of the U.S. Labor Department's proposed increase in the minimum dollar amount for the federal Fair Labor Standards Act's Section 13(a)(1) exemptions' salary requirement. However, judging...

FLSA Section 13(a) Exemptions Comment Period Will Not Be Extended

by John E. Thompson There will be no extension of the original 60-day period for commenting on the U.S. Labor Department's proposals and requests relating to the federal Fair Labor Standards Act's Section 13(a)(1) exemptions. U.S. Wage and Hour Administrator David Weil has so notified members...

When Will The Exemption Changes Occur?

by John E. Thompson One of the most-pressing questions for employers at the moment is when the U.S. Labor Department will finalize changes in its definitions of the federal Fair Labor Standards Act's Section 13(a)(1) exemptions. Some have recently suggested that final regulations will be released...