FLSA

PUMP Act suit against McDonald’s shows cost of ignoring the law

03/01/2024

A group of new mothers have brought one of the first PUMP Act class-action lawsuits. The case illustrates the legal folly of cutting corners on PUMP Act compliance.

Old test or new, the FLSA still defaults to employee status

02/21/2024

The Fair Labor Standards Act is remedial legislation that is meant to cover as many employees as possible. The Department of Labor’s final worker status regulations were never intended to change this. The main reason for issuing the regs was to codify the Supreme Court’s 80-year-old test. A recent case decided before the final regs were issued illustrates.

White-collar Wednesdays: Initial preparations for the DOL’s final salary-level regs

02/21/2024

We are now a little over two months away from the release of final regulations raising the weekly and annual salary amounts employees must earn to remain exempt from the FLSA, as promised by the Department of Labor. Regardless of how this shakes out, it’s best to be prepared.

FTC could begin investigating worker misclassification

02/20/2024

The Department of Labor isn’t the only federal agency interested in curbing worker misclassification. Now a member of the Federal Trade Commission has suggested it should start looking at whether companies that incorrectly classify workers as independent contractors instead of employees enjoy an unfair competitive advantage.

Worried about worker misclassification? Use this form to certify contractor status

02/14/2024

It’s crucial for organizations that use independent contractors to get the classification right. Are they really independent contractors or should they be classified as employees instead? Incorrectly classify a worker and you are sure to face the wrath of an array of federal and state regulators.

Know the ABCs of state worker classification

02/14/2024

The Department of Labor’s employee/contractor rule covers worker classification for the purpose of deciding federal cases. However, states are free to set their own standards, and most do. By far the most common test—often used to determine whether a worker is eligible for unemployment benefits—is what is known as the ABC test.

DOL orders extra helpings of damages against restaurants

02/12/2024

The Depart of Labor is cracking down hard on restaurants that cheat workers out of tips and otherwise fail to pay them properly. On Feb. 7 alone, the DOL announced it had recovered more than $850,000 from eateries in Florida, Hawaii and Oregon.

Federal contractor? Beware DOL probes of wage-and-hour violations

02/05/2024

Department of Labor investigators are going after federal contractors that cheat employees out of pay and leave—and the DOL is winning. The latest example: On Jan. 29, the DOL announced it had recovered nearly $16 million in back wages and restored more than 24,700 paid sick-leave hours for more than 2,800 employees who worked for 62 contractors and subcontractors.

Docking pay for snow-day absences: When is it legal?

02/04/2024

The snow’s coming down pretty good and an exempt employee calls to say she can’t make it in today because her car is stuck. Can you deduct a full day’s pay from her salary for that missed day? What if she’s non-exempt? What if you close work because of bad weather? Here’s guidance—and a handy flowchart—to help you make the call.

Prepping for DOL’s new employee/contractor rule? Call your lawyer first!

01/26/2024

The Department of Labor’s recently released final rule on employee/independent contractor classification is scheduled to take effect March 11. Maybe it will, maybe it won’t. A lawsuit has already been filed to stop the DOL from enforcing the rule, and more litigation could be coming. However, it’s smart to plan now to begin complying with the rule’s six-part economic realities test to determine whether a worker is an employee or an independent contractor.