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Category: FLSA

DOL Proposed Rule Would Make Millions of White Collar Workers Eligible for Overtime

The Department of Labor (DOL) has released its long-expected proposal to revise the regulations governing the minimum wage and overtime exemption for salaried employees under the Fair Labor Standards Act (FLSA). The proposed rule would increase by nearly 55 percent the current salary threshold under which an otherwise exempt white collar worker would qualify for overtime pay. Specifically, the minimum...
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Category: FLSA

Federal Court Once Again Rejects Restaurant Industry’s Challenge to Revised Tip Credit Rule

For the second time, a federal trial court in Texas has rejected an attempt by the restaurant industry to block enforcement of revised tip credit regulations issued by the Biden Administration’s Labor Department. The trial court’s latest ruling in Restaurant Law Center v. DOL, W.D. Tex. (July 6, 2023), comes after the U.S. Court of Appeals for the Fifth Circuit reversed...
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Category: FLSA

Sixth Circuit Rejects Two-Step Procedure for Certifying FLSA Class Claims

The U.S. Court of Appeals for the Sixth Circuit has rejected the often plaintiff-friendly conditional certification that many courts grant in allowing a collective action under the Fair Labor Standards Act to proceed. Instead, the court has adopted a standard that requires lead plaintiffs to first show a “strong likelihood” that other employees are similarly situated before allowing them to...
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Category: Compensation

Third Circuit Rules Paid Time Off Is Not Salary for FLSA Purposes

Paid time off (PTO) is not part of an employee’s salary, and therefore an employer did not violate the Fair Labor Standards Act (FLSA) by making deductions from FLSA-exempt employees’ paid time off if they failed to meet productivity goals, the U.S. Court of Appeals for the Third Circuit ruled recently in a case of first impression. The workers in Higgins...

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