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
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