Posts tagged 'FLSA'

August 16, 2012
55 view(s)

DOL to Continue Challenging Overtime-Exempt and Independent Contractor Arrangements

Speaking before the American Bar Association (ABA) at its annual conference this month, Solicitor M. Patricia Smith of the Department of Labor (DOL) said that investigations of employment arrangements that incorrectly classify people as independent contractors, or otherwise make employees exempt from overtime pay, would continue in a cooperative effort with several states. Smith, who as labor s...
August 15, 2012
50 view(s)

Recent FLSA Overtime Settlement Outside of Court Definitely Not the Norm

The Department of Labor (DOL) and the courts themselves have generally hewed to the ruling in the 1982 case of Lynn's Food Stores, Inc. v. the United States  that the "substantive rights" afforded by the Fair Labor Standards Act (FLSA) cannot be bargained or negotiated outside of court except by the DOL. Such "substantive rights" include the FLSA guarantee of time-a...
May 5, 2011
51 view(s)

New FLSA Regulations Take Effect Today (May 5)

New Fair Labor Standards Act (FLSA) regulations incorporating amendments and clarifications from recent years take effect today, May 5, 2011. The new rules also concern tip pooling arrangements, which make clear that tips cannot be diverted from people receiving them unless a valid tip-pooling arrangement has been established and promulgated to participants. The regulations navigate a course be...
May 3, 2011
55 view(s)

DOL Internship Standard Challenged in Court

Calling the Department of Labor's Fact Sheet #71—"Internship Programs Under the Fair Labor Standards Act"—"a poor method" and "overly rigid and inconsistent," the 6th Circuit Court of Appeals has ruled in favor of a for-profit nursing home that relied in part on interns to run its operations. The Labor Department issued a six-factor test to determin...
March 22, 2011
47 view(s)

SCOTUS Rules Oral Complaints as Valid as Written Ones

The U.S. Supreme Court today (March 22, 2011) overturned the 7th Circuit Court of Appeals' ruling that, to be valid, complaints under the anti-retaliation provision of the Fair Labor Standards Act (FLSA) must be in writing. In Kasten v. Saint-Gobain Performance Plastics, the justices rejected what they termed a "narrow interpretation" of language in the FLSA and threw open the sta...
February 16, 2011
53 view(s)

Courts Split on Overtime Status for Pharma Reps

The U.S. Supreme Court may end up deciding the issue, but for now one circuit court is saying yea and another nay to whether pharmaceutical sales representatives are eligible for overtime pay. The issue centers on the Fair Labor Standards Act (FLSA) exemption from overtime rules for those employees who are engaged in outside sales. Pharma reps and their attorneys argue that what the representat...
December 3, 2010
44 view(s)

DOL Collects $300 Million in Back Wages in New Enforcement Push

The Department of Labor (DOL) announced recently that it has collected more than $300 million in back wages since 2009, benefiting some 385,000 workers. Typically, back wages represent overtime pay that was withheld either knowingly or unknowingly. Since taking over, the Obama administration and DOL Secretary Hilda Solis have beefed up their inspection force by hiring some 300 additional W...
July 15, 2010
47 view(s)

New Child Labor Rules Take Effect July 19

The Department of Labor (DOL) recently updated its regulations regarding child labor in the U.S.—calling them "the most ambitious and far-reaching revisions" in the past 30 years—and these new regs are set to go into effect this coming Monday, July 19, 2010. The updated regulations effect a variety of changes to how DOL will interpret the child labor provisions of the Fair...
June 18, 2010
50 view(s)

DOL Cracks Down on Illegal Employment of Youths

The Department of Labor (DOL) has announced stiffer penalties for violation of the child labor laws covered under the Fair Labor Standards Act (FLSA) and other pieces of legislation.  "Beginning today, employers who hire children too young to work will face stiffer penalties," said Secretary of Labor Hilda L. Solis. "Work is not child's play. When children do work, that work...
May 6, 2010
55 view(s)

Reclassifying Employees Flags Compliance Risks

If you find yourself reclassifying your employees as non-exempt (from previously being exempt), then you could end up in deep legal doo-doo like the Michigan Bell Telephone Company. Reason? It doesn't take employees long to figure out that, if they're doing the same jobs as exempt as when they were non-exempt, then they were probably cheated out of overtime prior to the reclassification. Voila-...