The latest word from the Department of Labor (DOL) is that the long-discussed changes to the Fair Labor Standards Act (FLSA) — significantly increasing the salary basis threshold for most exemptions — will be finalized by July 2016. The regulations will likely be effective 60 days later, or September 2016. What does this mean for employers? It’s… More
FLSA
“The Internet Said It was Ok” Is NOT a Valid Defense!
Wage and hour lawsuits are on the rise, in large part because the claims are quite lucrative. As a quick reminder – under the federal Fair Labor Standards Act (FLSA) the liability is generally two times the amount of unpaid wages, plus attorney fees. The only way the employer can avoid double damages is to… More
DOL Independent Contractor Memo– Not News, Just a Reminder
DOL issued a 15-page memo last week about the potential misclassification of employees under the Fair Labor Standards Act (FLSA) as independent contractors. The take-away: DOL thinks most independent contractors are misclassified and should be considered employees. This memo is nothing new—it is merely an articulation of current law. But it is a reminder (as… More
Why You Cannot Look Away From Inaccurate Time Records
Under US wage and hour law, the employer must maintain time records for non-exempt employees in order to avoid overtime liability. As a reminder, the Fair Labor Standards Act (FLSA) typically requires employers to pay non-exempt employees time and a half for any overtime worked. If an employer fails to do so, and if an… More
LinkedIn Pays $5+ Million in Overtime and Damages After DOL Investigation
LinkedIn, the popular social networking site for professionals, just paid $3+ million in overtime back wages and an additional $2+ million in liquidated damages to settle claims brought on behalf of former and current employees. The settlement marked the conclusion of an investigation by the U.S. Department of Labor (DOL) into alleged (and apparently substantiated)… More
Be Proactive to Avoid FLSA Class and Collective Actions
Smart employers live in fear of a Fair Labor Standards Act (“FLSA”) class or collective action. How does this play out? One employee is fired and his lawyer realizes that the employer failed to comply with the (incredibly difficult and confusing) wage and hour laws. The lawyer realizes his client is probably not the only… More
Federal Government Finds the FLSA Tricky, Too
One of the most common complaints we hear from employers is that it is almost impossible to get everything right under the Fair Labor Standards Act (FLSA). Fear not, private employers, you are not alone in your confusion. The Court of Federal Claims recently ruled that the Federal government violated the Fair Labor Standards Act… More
Wage Violations May Exclude You From Federal Government Contract Work
The New York Times just reported that President Obama will sign an Executive Order requiring companies to disclose recent wage and hour law violations (within the past three years), and will then encourage agencies not to contract with companies that violate these laws. This likely means that the online representations and certifications that contractors complete through… More
FRANCHISORS BEWARE: You May Be Liable for the Labor Misdeeds of your Franchisees
Yesterday, to the shock of McDonalds and all other franchising companies, the National Labor Relations Board (NLRB) dramatically revised its definition of a “joint employer” and determined that franchisors can be responsible for ensuring that the companies to whom they sell a franchise comply with all labor laws. At issue were 43 different unfair labor… More
Harsh Liability Likely for Government Contractors that Violate the FLSA
A bill approved on July 10, 2014 by the House of Representatives includes an amendment that would prohibit all energy and water development agencies and other related agencies from working with contractors who have committed Fair Labor Standards Act (FLSA) violations within the past 5 years. Under current law all government contractors can already be… More