- Under a new rule proposed by the U.S. Department of Labor (DOL), the salary threshold for employees to qualify for the white-collar exemptions under the Fair Labor Standards Act (the “FLSA”) would increase from $35,568 to $55,068.
- The salary threshold for the FLSA’s highly compensated employee exemption also would increase, from $107,432 to $143,988.
- Further, the salary thresholds for these FLSA exemptions would increase automatically every three years under the new proposal.…
Tag Archives: Department of Labor
On November 22, 2021, the U.S. Department of Labor issued a Final Rule that will increase the minimum wage for employees who work on federal contracts. The Final Rule implements Executive Order 14026, which President Biden executed on April 27, 2021.
The Final Rule, which applies in all 50 states, the District of Columbia, and specified U.S. territories, does the following:
- Increases the hourly minimum wage for employees performing work on or in connection with covered federal contracts to $15 per hour beginning on January 30,…
On October 28, 2021, the United States Department of Labor (DOL) announced a new rule affecting employers with tipped employees. The rule limits the circumstances under which employers may take a “tip credit” against an employee’s wages – thus reducing the minimum wage the employee must be paid – to time the employee is actually performing tipped work or engaged in activity that “directly supports” tip-producing work.
Federal rules surrounding the tip credit have undergone significant changes over the past few years.… More
On September 24, 2019, the U.S. Department of Labor (DOL) unveiled the final version of its new overtime salary basis rule. The new rule increases the minimum salary threshold for salary-based overtime exemptions from $455 per week (or $23,600 annually) to $684 per week (or $35,568 annually). In addition to increasing the salary basis for administrative, executive and professional employees, the new rule allows employers to use nondiscretionary bonuses and incentive payments (such as commissions) to satisfy up to 10 percent of the salary basis level,… More
On April 1, 2019, the U.S. Department of Labor (DOL) issued a proposed rule that would clarify when two entities may be considered joint employers of an employee for purposes of the Fair Labor Standards Act (FLSA), and therefore may be held jointly and severally liable for FLSA violations. The rule comes nearly two years after the DOL withdrew Obama-era guidance broadly interpreting the rules regarding joint employment (see … More
Less than a month after proposing an increase to the salary threshold for certain overtime exemptions (see our previous client alert), the U.S. Department of Labor (“DOL”) has announced another possible rule change impacting the way employers pay employees overtime. This new proposed rule would update, for the first time in more than 50 years, rules regarding the types of employee compensation that must be included when calculating an employee’s “regular rate” under the Fair Labor Standards Act (“FLSA”).… More
On June 27, 2018, in a 5-4 decision in Janus v. AFSCME, the United States Supreme Court overruled longstanding precedent and held that public employees who are not members of a union elected to be their collective bargaining agent could not be required to pay so-called “agency fees” to that union. The decision is expected to have significant impact on organized labor, which relies on such fees to fund their activities.… More
Now that the FY 2019 H-1B cap has been reached, make sure you have a strong immigration compliance programs in place, particularly when it comes to Department of Homeland Security’s H-1B Site Visit program and Department of Labor H-1B/Labor Condition Application Audit program. As reported earlier this year, the government plans to step up targeted site visits and audits for H-1B cases in 2018.… More
On June 27, 2017, the U.S. Department of Labor (DOL) made two announcements that signal a change of direction for the new Administration. First, the DOL announced in a press release that it would return to its decades-long practice of issuing “opinion letters,” which provide employers formal, written guidance on specific labor law issues. Second, the DOL began the process for seeking public notice and comment on the Obama DOL’s rule increasing the salary threshold for overtime exemptions,… More
On June 7, 2017, the United States Department of Labor (“DOL”) announced that it is withdrawing the prior Administration’s guidance on joint employment and independent contractors. The Obama Administration had issued Administrator’s Interpretations (“AI”) in 2015 and 2016 that demonstrated its expansive view of who was an “employer” and “employee” for purposes of compliance under the Fair Labor Standards Act (“FLSA”). “Joint employment” had been broadly defined to capture certain relationships between associated companies and companies that use third parties for labor.… More