On February 27, 2026, the U.S. Department of Labor (DOL) released a proposed rule addressing employee versus independent contractor status under the Fair Labor Standards Act (FLSA). The proposed standard will also apply to employee classification under the Family and Medical Leave Act (FMLA) and Migrant and Seasonal Agricultural Worker Protection Act (MSPA).… Continue Reading
IRS Releases FAQs Addressing the New Deduction for Qualified Overtime Compensation
On January 23, 2026, the Department of Treasury and the Internal Revenue Service (IRS) issued Fact Sheet 2026-01, providing answers to frequently asked questions (FAQs) about the new “Deduction for Qualified Overtime Compensation” created by the One Big Beautiful Bill Act (the OBBBA).
The OBBBA created the Deduction for Qualified Overtime Compensation to allow individuals to claim a federal income tax deduction for certain qualified overtime compensation for the 2025 to 2028 tax years.… Continue Reading
U.S. Department of Labor Self-Audit PAID Program Returns, Allowing Employers to Identify and Resolve FLSA and FMLA Violations
The U.S. Department of Labor (DOL) announced several self-audit programs to assist employers, unions, and benefit plan officials with voluntarily assessing and correcting their compliance with federal labor laws. One of those programs is the Wage and Hour Division (WHD) Payroll Audit Independent Determination (PAID) program. The PAID program encourages employers to self-identify and resolve minimum wage and overtime violations under the Fair Labor Standards Act (FLSA), and certain leave violations under the Family and Medical Leave Act (FMLA).… Continue Reading
Department of Labor to Reconsider Rule Increasing Overtime Salary Thresholds for White Collar and Highly Compensated Workers
During the Biden administration, the U.S. Department of Labor (DOL) issued a final regulation (the “2024 Rule”) seeking to increase the salary threshold for overtime eligibility for the “white-collar” exemption (also referred to as the “EAP” exemption – executive, administrative, and professional) and the “highly-compensated employee” (HCE) exemption under the Fair Labor Standards Act (FLSA).… Continue Reading
Senate Confirms Chavez-DeRemer as 30th Secretary of Labor and Sonderling as Deputy Secretary
On March 10, 2025, in a 67-32 vote, the Senate confirmed the appointment of one-term Congresswoman Lori Chavez-DeRemer as the 30th Secretary of Labor and former EEOC Commissioner Keith Sonderling as Deputy Secretary.
Formally nominated by President Trump on January 20, 2025, Chavez-DeRemer (R) represented Oregon’s Fifth Congressional District from 2022-2024, sitting on House Committees for Agriculture, Education and the Workforce, and Transportation and Infrastructure.… Continue Reading
The Supreme Court Clarifies That the Preponderance Standard Applies to FLSA Exemption Cases
Employers confronted with individual or class action lawsuits or government investigations under the federal Fair Labor Standards Act (“FLSA”) have the burden to prove that employees are exempt from the law’s minimum wage and overtime provisions. The United States Supreme Court ruled on January 15, 2025, that the burden of proof on employers should not be heightened and instead the customary preponderance-of-the-evidence standard applies. … Continue Reading
Update on DOL’s Final Rule Increasing Compensation Thresholds for FLSA Overtime Exemptions
As we previously reported, the Department of Labor (DOL) published its final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees,” on April 23, 2024, which raised the salary thresholds for “white-collar” and highly compensated employees, rendering millions of employees eligible for overtime.… Continue Reading
Third Circuit Affirms College Athletes May Qualify as Employees Under FLSA
On July 11, 2024, a three-judge panel of the U.S. Court of Appeals for the Third Circuit ruled in Johnson v. NCAA that certain college athletes may qualify as employees of their schools or the NCAA under the Fair Labor Standards Act (“FLSA”). Being classified as employees could entitle college athletes to minimum wages and overtime pay, among other rights under the FLSA.… Continue Reading
DOL Issues Final Rule Increasing Compensation Thresholds for FLSA Overtime Exemptions
On April 23, 2024, the U.S. Department of Labor (DOL) published its final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees,” which raises the salary thresholds for “white-collar” and highly compensated employees, rendering millions of employees eligible for overtime. The final rule phases in the new thresholds beginning July 1, 2024.… Continue Reading
U.S. Department of Labor Issues Final Rule on Independent Contractor Status Under the FLSA
On January 9, 2024, the US Department of Labor (DOL) issued a final rule that provides revised guidance on whether a worker is properly classified as an employee or independent contractor under the Fair Labor Standards Act (FLSA). Under the FLSA, employees are entitled to minimum wage and overtime pay, while independent contractors are not.… Continue Reading