For those who thought the Trump DOL would back off the increased enforcement efforts of the Obama administration, last week’s news was not all good. The U.S. Department of Labor just announced that the Wage and Hour Division (WHD) recovered a record $304 million in wages owed to workers in Fiscal Year 2018. WHD also set a new record for compliance assistance events in FY 2018, holding 3,643 outreach events – including on the ground presentations and trainings – targeted to educate employers about their legal responsibilities regarding payment of wages.
During the month of September, the Department of Labor will be holding a series of “Listening Sessions” throughout the country in order to hear public comments about planned changes to the overtime rules under the Fair Labor Standards Act.
On this blog, we have followed the long and winding path of the years-long efforts to update the FLSA’s overtime rules (see our posts on the subject here, here, here, here, here, here, here, here, here, and here). To recap, in 2014, the Obama Administration set out to overhaul the overtime rules, and, after nearly two years, issued a set of final regulations, which were to have gone into effect on December 1, 2016. Among other things, these regulations would have increased the minimum salary threshold for exempt workers from $455 per week to $913. This change would have dramatically increased the number of workers who would be classified as non-exempt, and therefore eligible to earn overtime pay. However, after President Trump’s election, and just days before the regulations were to take effect, a federal court issued an injunction halting the changes. After almost a year of litigation and uncertainty, the Trump Administration finally abandoned the Obama Administration’s regulations and went back to the drawing board and started the entire rulemaking process over from scratch.
Back in September, we reported that the Trump Administration had abandoned the appeal of an injunction blocking new overtime rules from going into effect. That action effectively killed the Obama Administration’s effort to update and expand the overtime rule by raising the “salary level test” for executive, administrative, and professional workers from $455 per week to $913 per week. At the same time, the Trump Administration signaled that a scaled-down update of the overtime rule was on the way … eventually.
The U.S. Department of Labor recently initiated a nationwide pilot program referred to as the Payroll Audit Independent Determination (“PAID”) program. The stated purpose of the program is to facilitate resolution of potential overtime and minimum wage violations under the Fair Labor Standards Act (“FLSA”). The expectation is that FLSA claims will resolve more expeditiously and without litigation thus improving employer compliance with wage and hour laws and getting back wages to employees more quickly.
This is part 2 of a 2 part series. To read part 1, click here.
Now that you have read the top 5 NH Labor Law Violations, keep reading – you don’t want to get caught out on the last 5!: https://www.nh.gov/labor/inspection/violation-free.htm
Last week, the Department of Labor issued new guidance on whether interns are “employees” covered by the Fair Labor Standards Act’s minimum wage and overtime provisions. In the updated guidance, the DOL has adopted the “primary beneficiary test,” first applied by the U.S. Court of Appeals for the Second Circuit in 2015, and used by a growing number of courts in recent years.
This is part 1 of a 2 part series. To read part 2, click here.
At the end of 2017, the New Hampshire Department of Labor (DOL) published its annual list of “Top 10 New Hampshire Labor Law Violations.” While the list does not change that much from year to year, it is a good opportunity to review pay and record keeping practices to ensure compliance with NH law.
Yesterday, Judge Amos Mazzant, a federal judge based in Texas, issued an order invalidating the Obama-era overtime rule that would have made more than 4 million additional workers eligible to earn overtime.
A few weeks ago, the Department of Labor filed a brief with the Fifth Circuit Court of Appeals in which it backed away from the $913 per week salary level test set in the 2016 amendments to the FLSA overtime rules. In that brief, the DOL stated that it would soon publish a request for information seeking public input to be used by the DOL in drafting a new proposed overtime rule.
On June 27, 2017, U.S. Secretary of Labor Alexander Acosta announced that the U.S. Department of Labor (USDOL) will reinstate the issuance of opinion letters. You might be wondering why this decision is important to businesses. The answer is two-fold: (1) opinion letters provide interpretation of the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA) so that employers understand their rights and responsibilities under the law; and (2) opinion letters may be relied upon as a good faith defense to wage claims arising under the FLSA.