For the second time in two weeks, the U.S. Supreme Court has ruled against a company seeking to compel individual arbitration of Fair Labor Standards Act (FLSA) collective action claims. In Southwest Airlines Co. v. Saxon, the Court held that the plaintiff’s claims were exempt from arbitration under Section 1 of the Federal Arbitration
FLSA
Department of Labor and National Labor Relations Board Announce Plan to Partner for Investigations and Information Sharing
The U.S. Department of Labor, Wage and Hour Division (DOL-WHD) and National Labor Relations Board (NLRB) announced plans to collaborate “to enhance and maximize the enforcement of the federal laws administered between the two agencies.” The DOL-WHD enforces the minimum wage and overtime requirements while the NLRB enforces the National Labor Relations Act (NLRA).
Under…
Department of Labor Announces Dual Jobs Rule for Tipped Employees
The Department of Labor (“DOL”) announced publication of the Dual Jobs final rule. This rule finalizes the DOL’s proposal to withdraw one portion of the Fair Labor Standards Act (“FLSA”) tip rule that was finalized in 2020. Employers who employ workers engaged in tipped work, like servers and bartenders, need to consider how this rule…
USDOL Publishes Final Rule Regarding Monetary Penalties Against Employers for Tip Violations
On September 23, 2021, the U.S. Department of Labor (DOL) published a final rule announcing when it will assess civil money penalties (CMPs) against employers who retain tips earned by their workers. Under the rule, available here, the DOL may assess a penalty of up to $1,100 per violation each time it finds an…
In Budget Deal, Pennsylvania Repeals Overtime Expansion
In October 2020, Pennsylvania regulations took effect that increased the salary threshold for exempt employees to the federal level, and would have increased the threshold above the federal minimum beginning in October 2021.
However, a recent budget compromise between Democratic Governor Tom Wolf and a Republican-led state legislature has resulted in the regulations’ repeal.…
Department of Labor Proposes Thirty-Minute Maximum for Tip Credit Wages for Sidework
On June 21, 2021, the U.S. Department of Labor (DOL) announced that it will propose new regulations limiting the amount of time that tipped employees, like food servers or bartenders, can perform on non-tipped work before they would be owed a full minimum wage from their employer. The public will have until August 23, 2021…
Biden Administration Rescinds Employer-Friendly Independent Contractor Test
On May 6, 2021, the Department of Labor (“DOL”) issued a final rule, effective immediately, withdrawing a pro-business independent contractor rule that would have made it easier for businesses to classify workers as independent contractors, rather than as employees who are entitled to minimum wage and overtime pay under the Fair Labor Standards Act. Earlier…
DOL Announces “Essential Workers, Essential Protections” Program
The United States Department of Labor (DOL) Wage and Hour Division just launched a new initiative called “Essential Workers, Essential Protections” that provides workers with information about the wage and hour laws that apply to them, including instructions on how to contact the DOL with questions or complaints.
In conjunction with this new initiative, the…
DOL Revokes Trump Policy Limiting Double Damages for Wage Violations
In another policy change that is designed to benefit workers and penalize businesses that violate the law, the federal government announced that employers who violate the overtime or minimum wage provisions of the federal Fair Labor Standards Act (FLSA) may be liable for both the unpaid wages and an additional equal amount as liquidated damages. …
Department of Labor Announces Proposed Rules to Reconsider Tipped-Worker Regulations
On Tuesday, the Department of Labor (DOL) announced that it had issued two Notices of Proposed Rulemaking (NPRM) concerning tipped workers’ compensation. If adopted, the NPRM would delay, for a second time, the effective date of several rules the agency published during the Trump Administration. Though for now the move is merely a delay, it…