Courts addressing FLSA misclassification claims brought by employees classified as salaried exempt workers must determine damages. In a new decision from the United States District Court for the Eastern District of Louisiana, Judge Jane Triche Milazzo ruled that successful Plaintiffs in one such misclassification case are only entitled to “half-time” damages. Further, the Court
fluctuating workweek
Missouri Court Analyzes, Upholds Employer’s Use Of Fluctuating Workweek Method Of Overtime Payment
One method of computing overtime payments under the FLSA is the “fluctuating workweek” method. The Department of Labor’s interpretive bulletin, 29 C.F.R. § 778.114, sets forth this example of determining the regular rate of pay when an employee is paid a salary for all hours worked in a workweek, whether few or many. Because the…
New York Federal Court Upholds Payment of Overtime Pursuant to Fluctuating Workweek Method Notwithstanding Bonus Pay
Uncertainty and litigation have ensued in the wake of the Department of Labor’s May 5, 2011 Final Rule regarding application of the fluctuating workweek method of overtime compensation (FWW) authorized by 29 CFR § 778.114, specifically the Rule’s commentary on the payment of incentive compensation to employees compensated via FWW. In a thorough recent decision,…
Federal Court Orders Trial Regarding Lady Gaga Assistant’s Wage Claims
In the still unresolved FLSA litigation concerning alleged unpaid overtime brought by a former personal assistant to entertainer Stefani Germanotta a/k/a Lady Gaga, Judge Paul Gardephe of the Southern District of New York has issued a lengthy ruling addressing some of the asserted claims and defenses. The Court concluded that plaintiff’s New York state law claims …
Fifth Circuit Reiterates Appropriate Calculation of Damages For Employees Misclassified as Exempt
In a decision issued on August 16, 2013, the Court of Appeals for the Fifth Circuit, building on its now-venerable ruling in Blackmon v. Brookshire Grocery Co., 835 F.2d 1135 (5th Cir. 1988), reversed a trial court ruling that refused to apply the “half time” measure of damages in an FLSA misclassification case. Ransom …
SDNY Judge Oetken Upholds Payment Of Overtime Pursuant To Fluctuating Workweek Method
The technical requirements for paying overtime pursuant to the fluctuating workweek method set forth in 29 C.F.R. § 778.114, can be confusing. The regulation, for example, discusses an employee and employer having a clear mutual understanding that overtime will be paid pursuant to the fluctuating workweek (FWW) method. In a new decision analyzing the FWW method, …
District Court Finds Clear Mutual Understanding Necessary to Uphold Fluctuating Workweek Compensation Plan
The requirements of paying overtime to a non-exempt employee pursuant to the fluctuating workweek method are generally straightforward and set forth in 29 C.F.R. 778.114: (1) the employee’s hours must fluctuate from week to week; (2) the employee must receive a fixed salary that is sufficient to provide compensation at a regular rate that is…
Connecticut State Court Upholds Application of Fluctuating Workweek
As we consistently explain, state wage and hour laws do not always follow the FLSA in regard to determining exempt status and issues pertaining to calculation of overtime. State law is often unclear on these issues, and state courts and departments of labor often provide only limited guidance. In a new decision, one Connecticut state…
Florida District Court Utilizes Half-Time Calculation In Determining FLSA Damages Owed To Misclassified Independent Contractor
As previously discussed in this blog, many (if not most) courts agree that an employee who receives a fixed salary for varying hours of work has a “clear mutual understanding” with his/her employer that such salary covers all hours of work, and that in the event overtime is deemed owed because the employee was not…
USDOL Revises Tip Credit Regulations, Leaves Others Unchanged
Following up on proposed regulations issued in 2008 for notice and comment, the U.S. Department of Labor issued final regulations last week, effective 30 days following publication in the Federal Register. These regulations address the issues below but other than in regard to use of the tip credit under Section 3(m), the changes to the text…