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Category: FLSA

Fifth Circuit Vacates DOL’s “80/20 Rule” for Paying Tipped Workers

A federal appeals court has thrown out the Biden Administration’s “80/20 Rule” rule governing the payment of tipped employees, finding it contrary to the language of the Fair Labor Standards Act (FLSA). In Restaurant Law Center v. U.S. Department of Labor, a unanimous three-judge panel of the U.S. Court of Appeals for the Fifth Circuit invalidated the rule on August 23,...
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Category: FLSA

DOL’s Overtime Rule Takes Effect as Federal Court Blocks Enforcement Against Texas

The first phase of the U.S. Labor Department’s recent revisions to its overtime regulations for executive, administrative, and professional employees went into effect July 1, 2024. DOL’s final rule increased the minimum salary level from $684 per week to $844 per week (equivalent to an annual salary of $43,888) on July 1, 2024, and to $1,128 per week (equivalent to an annual...
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Category: DOL

DOL Claims Manufacturer Is Jointly Liable for Child Labor Violations Committed by Its Supplier

The U.S. Department of Labor recently filed a lawsuit alleging that an auto manufacturer is jointly liable for child labor violations committed by one of its suppliers and the supplier’s staffing company. In its complaint, DOL alleges that the auto manufacturer is so interrelated with its supplier that it is an integrated employer for liability purposes under the Fair Labor Standards Act...
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Category: Compensation

Highlights From CWC’s Web Workshop on DOL’s New “White Collar” Overtime Regulations

The Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, held a members-only web workshop May 7, 2024, to discuss the Labor Department’s new white-collar overtime regulations, which will take effect July 1, 2024. DOL’s rule increases the minimum amount that a salaried employee must be paid to be exempt from overtime pay—from the current $684 per week to...
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Category: FLSA

DOL Raises White Collar Overtime Threshold by 65%, Leaves Employers Little Time To Comply

The U.S. Department of Labor has issued a final rule revising the white-collar exemptions to the Fair Labor Standards Act’s overtime rules that will make thousands of additional salaried executive, administrative, and professional employees eligible for overtime pay. The rule will increase the minimum amount that a salaried employee must be paid to be exempt from overtime pay—from the current...
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Category: FLSA

DOL’s Controversial Independent Contractor Rule Goes Into Effect

The Department of Labor’s new independent contractor rule for worker classification under the Fair Labor Standards Act (FLSA) went into effect March 11, 2024, although it is subject to several legal challenges. This latest version of the ever-changing standard lists six non-weighted economic factors to consider when deciding whether a person is an independent contractor or an employee. The new...
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Category: Agency Enforcement

DOL’s Release of FMLA/FLSA Enforcement Data Shows Little Change From Previous Year

Enforcement statistics related to the Family and Medical Leave Act and the Fair Labor Standards Act do not show much change from fiscal year 2022 to fiscal year 2023, according to data published by the Labor Department’s (DOL) Wage and Hour Division (WHD). The data showed that in FY 2023, WHD closed 334 cases in which it found an FMLA...
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Category: FLSA

DOL Finalizes Rule Making It Harder To Show Worker Is Independent Contractor

The U.S. Department of Labor (DOL) has finalized a rule that determines whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The new rule will go into effect March 11, 2024. It rescinds regulations issued during the Trump Administration and adopts a controversial six-part economic reality test applied during the Obama Administration. Although...
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Category: FLSA

Six States Will Have Overtime Minimum Salary Thresholds Higher Than Fed as of 1/1/24

To be exempt from overtime pay under federal law, an executive, administrative, or professional employee must be paid a weekly salary of at least $684 (equivalent to an annual salary of $35,568), regardless of the employee’s job duties. The Fair Labor Standards Act (FLSA) does not preempt individual states from enacting their own more expansive wage and hour laws, however, and...
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Category: Comment Letter

CWC Comments to DOL Object to Proposal for Expanding White Collar Overtime Pay

The Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, has filed written comments with the Department of Labor (DOL) objecting to its proposed rule that would substantially increase the salary test for white-collar overtime regulations. CWC’s comments question whether the proposal is needed and whether it exceeds DOL’s authority under the Fair Labor Standards Act (FLSA). If finalized...

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