Federal Court Invalidates DoL’s Proposed Overtime Rule

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In November 2016, a federal district court in Texas granted a preliminary injunction against the imposition of the Department of Labor’s effort to change the white collar exemptions to overtime rules. The rule would have effectively doubled the salary requirement to maintain an exemption: from $455 per week to $913 per week.

The DoL appealed the injunction, but on August 31, 2017, it lost its appeal on summary judgment. Further, and more importantly,

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H.R. 6030 “Pay Equity for All Act of 2016” Introduced in the House

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On September 14, 2016, Eleanor Norton (D.C. Representative) introduced H.R. 6030 to the House of Representatives, and that bill was referred to the Committee on Education and the Workforce. The bill would amend the Fair Labor Standards Act (“FLSA”) by adding the following new Section 8:

Sec. 8. Requirements and prohibitions relating to wage, salary and benefit history

It shall be an unlawful practice for an employer to—

(1) screen prospective employees based on their previous wages or salary histories,

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New Overtime Rules Released

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This morning, the Department of Labor released its final rule regarding the White Collar Exemptions.   I am still working through the over 500 page document but post now to share a few of the most important details.

The new rule is expected to affect over 4 million workers in the United States, who will now be eligible for overtime unless their compensation is restructured.  The rule goes into effect on December 1,

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Obama Administration Taking Actions to “Advance Equal Pay for all Workers”

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On the 7th anniversary of President Obama’s signing into law his first piece of legislation as President, the Lilly Ledbetter Fair Pay Act, he announced “several additional actions that his administration is taking to advance equal pay for all workers and further empower working families.”

The most interesting additional action would affect employers with 100 or more employees.  These companies would be required, on an annual basis, to report details of what they pay their employees categorized by race,

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DoL Publishes Joint Employer Interpretation

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On January 20, 2016, the Wage and Hour Division released an Administrator’s Interpretation concerning joint employment under the Fair Labor Standards Act and the Migrant and Seasonal Agricultural Worker Protection Act. The interpretation identifies common scenarios in which two or more employers jointly employ an employee and are thus jointly liable for compliance. It pulls together all the relevant authorities – statutory provisions, regulations, and case law – to provide comprehensive guidance on joint employment under FLSA and MSPA so that employers can properly analyze a potential joint employment scenario.

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Start Your Overtime Exemption Analyses Now!

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On July 1, 2015, I informed you that the Department of Labor was initiating a change to the white collar exemption regulations and beginning a public comment period.  As the DoL reviews tens of thousands of comments on its proposed changes to the White Collar Exemptions, employers should begin analyzing their exempt positions to determine whether they will still be exempt from overtime after the rule is inevitably issued.

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Salaried Means No Overtime, Right? Ask Halliburton

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The Fair Labor Standards Act (“FLSA”) requires employers to pay most workers minimum wage and overtime to nonexempt workers for work in excess of 40 hours per workweek. Overtime must be paid unless the worker is defined as “exempt” under the Act. Many employers believe that simply paying employees on a salary basis makes them exempt from overtime, but several more factors affect the classification than whether you pay employees a salary or pay them hourly.

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The DoL Proposes Changes to the “White Collar Exemptions”

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Yesterday, on June 30, 2015, the U.S. Department of Labor released proposed rule changes that would affect whether certain individuals are entitled to overtime under the Fair Labor Standards Act.  The most used exemptions from overtime are referred to as the “white collar exemptions” and exempt many managers, administrators, and professionals from entitlement to overtime if they are paid on a salary basis and at least certain weekly amounts.  The current weekly salary threshhold that must be met to qualify for these exemptions,

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White House Issues Memorandum to DoL

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As expected, on March 13, 2014, the President issued a memorandum to the Department of Labor, directing the agency to revamp regulations related to overtime exemptions.  In part, the President directed the DoL to:

“propose revisions to modernize and streamline the existing overtime regulations. In doing so, you shall consider how the regulations could be revised to update existing protections consistent with the intent of the Act; address the changing nature of the workplace;

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Expect Obama to Push for Expanded Overtime

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Today, President Obama is expected to direct the Department of Labor to use its rule-making authority to expand overtime coverage to more American workers.  Under overtime exemptions executive, professional, and administrative workers who earn more than $455 per week may be exempt from overtime pay if they meet certain job-related criteria.  

President Obama will likely ask the DoL to increase that weekly threshold which would increase the number of workers entitled to overtime pay.

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