Agreeing with the district court, the Court of Appeals for the Fourth Circuit has concluded that the mandatory service charges imposed by a restaurant on dining parties of six or more were not “tips” under the FLSA. However, the Court of Appeals reversed and remanded the trial court’s determination that the FLSA’s “commissioned salesperson” overtime
Exemptions
DOL Issues New Opinion Letters on Fluctuating Workweek Hours Requirement, Other Topics
Continuing the practice it reinstituted during the current administration, on August 31, 2020 the U.S. Department of Labor’s (DOL) Wage Hour Division (WHD) issued four new Opinion Letters, addressing a variety of topics. That brings the total to 57 Opinion Letters issued since 2018, including the re-publication of 17 Opinion Letters withdrawn during the Obama…
Fifth Circuit Reverses Course, Concludes That “Day Rate” Pay Method Fails to Satisfy FLSA’s “Salary Basis” Test for Overtime Exemptions
Upon further reflection, a panel of the U.S. Court of Appeals for the Fifth Circuit has determined that paying an employee a set amount for each day that he works (i.e. on a “day rate” basis) does not satisfy the “salary basis” component required to qualify as overtime-exempt under the Fair Labor Standards Act…
Limousine Service Employee Was Properly Classified as Exempt, Second Circuit Holds
Upholding a jury verdict in favor of the defendant “black car” (limousine service) company, the U.S. Court of Appeals for the Second Circuit concluded that the plaintiff-employee was properly classified as overtime-exempt under both the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). Suarez v. Big Apple Car, Inc., 2020 U.S.…
Timber Harvesting Company Cannot Escape Overtime Liability, But Commute and Meal Break Time Should Not Have Been Included, Sixth Circuit Holds
Rejecting employer Timberline South’s argument, among others, that FLSA coverage did not apply because all of its timber harvesting occurred only within one state, the Sixth Circuit Court of Appeals nevertheless concluded that the commuting and meal break times should not have been included in the trial court’s calculation of overtime damages. Secretary of Labor…
Comment Period Now Underway for New DOL Overtime Rule
Earlier this month, the U.S. Department of Labor (DOL) issued a new proposed rule that intends to raise the annual minimum salary requirements for the FLSA’s “white collar” (executive, administrative, and professional) overtime exemptions to $35,308 ($679 per week), up from the current annual minimum of $23,660 ($455 per week). A full discussion of this…
DOL Issues New Proposed Overtime Rule
The U.S. Department of Labor (DOL) has issued a new proposed rule raising the salary level requirements for the white collar exemptions. A full article discussing the proposed rule will be published later but here is what you need to know now:
- The new standard salary level will be $35,308 annually ($679 per week). This
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Pennsylvania Governor Seeks to Expand Overtime Pay to Currently Exempt Employees
Frustrated by years of unsuccessful efforts to raise the minimum wage through the state’s Republican-controlled legislature, and in response to the recent federal court invalidation of the Obama-era DOL’s rule that would have doubled the minimum salary requirement for the executive, administrative and professional exemptions (i.e. the “white collar” exemptions) under the FLSA, Pennsylvania…
Supreme Court (Re)hears Oral Argument on Application of Automobile Dealer Exemption to Service Advisors
Last week the Supreme Court heard – for the second time – oral argument in Encino Motorcars, LLC v. Navarro. At issue is whether “service advisors” at dealerships are covered by what’s known as the “automobile dealer” exemption set forth in Section 213(b)(10)(A) of the FLSA. That exemption excludes from overtime any “salesman, partsman,…
Toll Road Ahead: Fourth Circuit Rules Mixed-Fleet Interstate Truck Drivers May Be Entitled to Overtime Pay
Despite the overtime exemption provided by the Motor Carrier Act, interstate trucking employers who operate “mixed fleets” – those with vehicles both over and under 10,000 pounds – may owe overtime pay to drivers of the smaller vehicles, the Fourth Circuit Court of Appeals recently ruled. Schilling v. Schmidt Baking Co., 2017 U.S. App.…