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Snell & Wilmer’s Labor and Employment Law Blog provides breaking news and updates on legal issues facing employers.Topics
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U.S. Department of Labor Issues New Rule Clarifying Exclusions from Overtime Calculation
On December 12, 2019, the U.S. Department of Labor (“DOL”) finalized a new rule that lets employers leave several perks, including tuition benefits, paid leave cash-outs, and some bonuses, out of the formula used to calculate employees’ overtime pay. According … Continue reading
Posted in DOL, FLSA, Pay, Snell & Wilmer
| Tagged Fair Labor Standards Act, Overtime, Wage & Hour
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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
Posted in DOL, FLSA, Pay
| Tagged Final Rule, Highly Compensated Employees, Overtime, Salary, US Department of Labor
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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
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
Posted in DOL, FLSA, Pay
| Tagged Eastern District of Texas, Fifth Circuit, Notice, Notice of Proposed Rulemaking, Obama, Overtime, U.S. District Court, USDOL
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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
Posted in DOL, FLSA, Pay
| Tagged Exempt, Exemption, Justice Thomas, Ninth Circuit, Overtime, SCOTUS, Wages
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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
Posted in FLSA, Pay
| Tagged Automobiles, Exemption, Ninth Circuit, Overtime, SCOTUS, Wages
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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
Posted in California, FLSA, Pay
| Tagged Bonus, California Supreme Court, Classification, Overtime
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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
Posted in DOL, FLSA, Minimum Wage, Pay
| Tagged Employees, Intern, Ninth Circuit, Overtime, Primary Beneficiary Test, Second Circuit
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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
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