U.S. Department of Labor Issues Final Salary Threshold Rule, Effective January 1, 2020

On September 24, 2019, the U.S. Department of Labor (DOL) announced a final rule to make an estimated 1.3 million American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA).  Check out Snell & Wilmer’s legal alert … Continue reading

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Common and Costly Employer Mistake: Not Paying Overtime Premium on Incentive Compensation

Most employers know that the Fair Labor Standards Act (“FLSA”) requires minimum wage and overtime to be paid to employees unless they are exempt. A common mistake, however, is when employers fail to properly factor certain incentive compensation into non-exempt … Continue reading

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U.S. Department of Labor Proposes New Salary Threshold Rule

On March 7, 2019, the U.S. Department of Labor (DOL) released its long-awaited Notice of Proposed Rulemaking (NPRM) to update the minimum salary threshold under the Fair Labor Standards Act – an update that would make approximately a million more … Continue reading

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Legal Alert: U.S. Supreme Court Adopts a “Fair Reading” Standard for FLSA Exemptions

In this week’s L&E Legal Alert, Jennifer Yee and Josh Woodard take a deeper dive into the Encino Motorcars, LLC v. Navarro where the U.S. Supreme Court rejected  the longstanding principle that courts construe FLSA exemptions narrowly and, instead, adopted … Continue reading

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Supreme Court Rejects Principle that FLSA Overtime Exemptions Should Be Construed Narrowly

In a 5-4 opinion issued on April 2nd, the United States Supreme Court held that service advisers at car dealerships are exempt from the overtime pay requirement of the FLSA because they are “salesmn . . . primarily engaged in … Continue reading

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California Supreme Court Deviates From Federal Regulations on Calculating Regular Rate of Pay on Flat Rate Bonuses

Earlier this week the California Supreme Court ruled that when calculating the regular rate of pay for flat rate bonuses an employer must divide the employee’s total pay (including the bonus) by the employee’s total non-overtime hours worked and multiply … Continue reading

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DOL Adopts Primary Beneficiary Test to Assess Whether Interns are Employees

The U.S. Department of Labor (“DOL”) abandoned its former test for assessing whether interns qualify as “employees” under the Fair Labor Standards Act (“FLSA”). Aligning itself with several appellate courts, including the Ninth and Second Circuits, the DOL now embraces … Continue reading

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Federal Court strikes down Overtime Rule

A Texas federal district court judge invalidated the Department of Labor’s (“DOL’s”) controversial Final Rule that would have made more than 4 million currently exempt employees eligible for overtime. On May 23, 2016, the DOL issued its Final Rule which … Continue reading

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Nationwide Injunction Halts Enforcement of DOL Regulation on Overtime Pay

Yesterday, a federal judge from the United States District Court for the Eastern District of Texas entered a nationwide preliminary injunction prohibiting the U.S. Department of Labor from implementing updates to the salary requirements for exempt employees. Earlier this year, … Continue reading

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