Fair Labor Standards Act

U.S. Department of Labor Announces Final “Independent Contractor” Rule

January 11, 2024

By Adam P. Mastroleo and Samuel M. Brewster

As we previously reported here, on Oct. 11, 2022, the U.S. Department of Labor (DOL) issued a Notice of Proposed Rulemaking that would revise the analysis for determining independent contractor status under the Fair Labor Standards Act (FLSA or Act).  On Jan. 9, 2024, the DOL announced its final rule.

Read More >> U.S. Department of Labor Announces Final “Independent Contractor” Rule

U.S. Department of Labor Proposes to Increase the Salary Level to Qualify for the White Collar Exemptions

September 6, 2023

By Subhash Viswanathan

On Aug. 30, 2023, the U.S. Department of Labor (USDOL) issued a proposed rule to increase the minimum weekly salary to qualify for the Fair Labor Standards Act white collar exemptions from $684 per week (the annual equivalent of $35,568) to $1,059 per week (the annual equivalent of $55,068). This new proposed salary level is based on the 35th percentile of earnings of full-time salaried workers in the lowest-wage Census Region. When the exempt salary level was last raised to $684 effective Jan. 1, 2020, the USDOL set it at the 20th percentile of earnings of full-time salaried workers in the lowest-wage Census Region.

Read More >> U.S. Department of Labor Proposes to Increase the Salary Level to Qualify for the White Collar Exemptions

The Intersection of Employer Counterclaims and Retaliation: An Analysis of the Second Circuit’s Recent Decision in Kim v. Lee

March 28, 2023

By Kevin G. Cope, Stephen A. Sharkey, and Suzanne M. Messer

Employers are well aware of the risks a disgruntled employee may pose during their employment and even after their employment has ended. Sometimes, however, employers do not discover an employee’s unscrupulous behavior until after an employee has sued their employer for violation of one or more employee protection statutes, i.e., the New York Labor Law (NYLL), Fair Labor Standards Act (FLSA) or New York State Human Rights Law (NYSHRL). These statutes, however, also contain prohibitions against retaliation, leading many employers to question whether they could or should countersue an employee for tortious conduct and potentially risk a claim for retaliation. The Second Circuit in Kim v. Lee, 2023 WL 2317248, 22-61 (2d Cir. March 2, 2023), shed some light on this topic and held that an employer’s counterclaim is retaliatory when it is baseless or frivolous. The Court did not, however, decide whether non-frivolous counterclaims might support a valid retaliation claim.

Read More >> The Intersection of Employer Counterclaims and Retaliation: An Analysis of the Second Circuit’s Recent Decision in Kim v. Lee

Supreme Court Limits “Highly Compensated Employee” Exemption under the Fair Labor Standards Act (FLSA): A Review of Hewitt v. Helix Energy Sols. Grp., Inc.

February 22, 2023

By James M. Taglienti

On Feb. 22, 2023, the Supreme Court of the United States (SCOTUS) decided Hewitt v. Helix Energy Sols. Grp., Inc.[1] In granting certiorari, the Court addressed the following question: Is a supervisor, who makes over $200,000 annually, calculated on a daily rate, considered a “Highly Compensated Employee” (HCE) who is overtime exempt under the FLSA? In a 6-3 decision, the Court ruled that the supervisor is not an HCE and is not overtime exempt.

Read More >> Supreme Court Limits “Highly Compensated Employee” Exemption under the Fair Labor Standards Act (FLSA): A Review of Hewitt v. Helix Energy Sols. Grp., Inc.

DOL Proposes New Rule For Independent Contractor Classification

October 20, 2022

By Adam P. Mastroleo and Rebecca J. LaPoint

On Oct. 11, 2022, the U.S. DOL of Labor (DOL) released a Notice of Proposed Rulemaking that would revise the analysis for determining independent contractor status under the Fair Labor Standards Act (FLSA). The proposed standard would rescind the current rule that has been in effect since March 8, 2021.

Read More >> DOL Proposes New Rule For Independent Contractor Classification

Appellate Division Holds Attorney General’s COVID-19 Retaliation Claims are Preempted by Federal Law

May 17, 2022

By Hannah K. Redmond

In February 2021, New York State Attorney General, Letitia James, filed a lawsuit against Amazon alleging that the retailer failed to sufficiently prioritize hygiene, sanitation and social distancing at its fulfillment center and delivery station in New York City.1 The Complaint also alleged that Amazon unlawfully terminated employees at those locations who complained about conditions they perceived to be unsafe.2 The Complaint asserted causes of action under various sections of the New York Labor Law (NYLL), including Sections 200, 215 and 740, all of which “relate to the obligations of New York businesses to adequately protect the health and safety of employees and to refrain from discrimination or retaliation against employees who complain about potential NYLL violations.”3

Read More >> Appellate Division Holds Attorney General’s COVID-19 Retaliation Claims are Preempted by Federal Law

The U.S. Department of Labor Withdraws Its Independent Contractor Regulations

May 6, 2021

By Subhash Viswanathan

On May 6, the U.S. Department of Labor (USDOL) withdrew its final regulations that would have revised the standard for determining whether a worker is an employee covered under the Fair Labor Standards Act (FLSA) or an independent contractor who is not subject to the FLSA’s minimum wage and overtime requirements. According to the USDOL, the independent contractor rule that was withdrawn “is inconsistent with the FLSA’s text and purpose, and would have a confusing and disruptive effect on workers and businesses alike due to its departure from longstanding judicial precedent.”

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Dismissing Non-Willful Claims Under the FLSA – the Second Circuit Rules on an Issue of First Impression

May 3, 2021

By Michael D. Billok

Everybody knows that the statute of limitations for claims under the Fair Labor Standards Act (FLSA) is two years, unless the claim is for a willful FLSA violation, in which case the statute of limitations is three years. Okay, maybe everybody doesn’t know that—but attorneys who regularly bring or defend wage-and-hour claims certainly do (and if you’re reading this blog, you probably do as well). So an FLSA claim filed in 2021 based on allegations from 2017 can be easily dismissed at the outset of litigation, because such a claim is clearly beyond the longest possible statute of limitations of three years. Now, consider this: what if a plaintiff files a claim in May 2021, alleging an FLSA violation from June 2018? In that case, the only way the plaintiff can bring a valid FLSA claim is if the claim is willful, because then the plaintiff could utilize the three-year statute of limitations.

Read More >> Dismissing Non-Willful Claims Under the FLSA – the Second Circuit Rules on an Issue of First Impression

Pay Equity a Focus For Biden Administration in 2021

March 1, 2021

By Christa Richer Cook

In the wake of the social justice movements and a nationwide push towards greater equality, transparency, diversity and accountability, it is expected that pay equity will be a focus for the Biden administration in the coming year. Pay equity issues are gaining the attention of employees and, in turn, becoming of increasing concern for employers.

Read More >> Pay Equity a Focus For Biden Administration in 2021

DOL Sends Proposed New Joint Employer Rule to White House for Review

February 25, 2021

On February 23, 2021, the U.S. Department of Labor (DOL) sent a proposed new regulation on joint employment status under the Fair Labor Standards Act (FLSA) to the White House for regulatory review. This action is indicative that new guidance will follow for determining joint employer status when an employee performs work that benefits more than one employer. 

Read More >> DOL Sends Proposed New Joint Employer Rule to White House for Review

U.S. Department of Labor Adopts Final Independent Contractor Status Regulations

January 13, 2021

By Paul J. Buehler III

On Jan. 7, 2021, the U.S. Department of Labor (DOL) published its final rule to revise and update its regulations regarding classification of employees vs. independent contractors. This determination of independent contractor status is critical to wage liability, as employees are generally guaranteed minimum wage and overtime under the Fair Labor Standards Act—absent some exemption—while independent contractors are not.

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USDOL Issues Guidance on Tracking Compensable Hours of Remote Employees

September 9, 2020

By Hannah K. Redmond

On August 24, 2020, the United States Department of Labor (DOL) issued guidance to assist employers in complying with their obligation to track compensable hours of employees working in remote or telework arrangements.  While this guidance was issued in response to the increase in remote work due to the COVID-19 pandemic, it applies to all employees working remotely for any reason.

Read More >> USDOL Issues Guidance on Tracking Compensable Hours of Remote Employees