Published: April 18, 2018

The Wage and Hour Division of the U.S. Department of Labor issued three opinion letters on April 12, 2018, on the topics of compensation for health-related breaks under the Fair Labor Standards Act, compensation for travel time for hourly workers under the FLSA, and what types of lump-sum payments can be garnished under the Consumer Credit Protection Act. Opinion letters give the WHD the opportunity to provide guidance on specific questions received from the business community.

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Published: April 3, 2018

On March 29, 2018, the New Jersey Appellate Decision issued an opinion which clarifies and expands rights to unemployment benefits to certain employees who voluntarily resign from their positions in the face of imminent employment termination. Previously, if an employee voluntary quit his or her job in New Jersey, then that employee was not eligible to receive unemployment compensation benefits. However, the court’s decision in Cottman v. Board of Review, et al. held that the law is not so straightforward.

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Published: March 26, 2018

Earlier this month, the Wage and Hour Division of the Department of Labor announced a new pilot program, the Payroll Audit Independent Determination (PAID) program. The PAID program is aimed at expediting resolution of employers’ inadvertent overtime and minimum wage violations under the FLSA without litigation.

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Published: January 9, 2018

On January 5, 2018, the U.S. Department of Labor (“DOL”) abandoned its six-factor test for assessing whether a worker is an intern or an employee, for purposes of coverage under the Fair Labor Standards Act (“FLSA”). The six-factor test was conjunctive, and difficult to apply—particularly the factor that the employer gains “no immediate advantage from the activities of the intern.”

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Published: October 31, 2017

On October 30, 2017, the Department of Labor (“DOL”) alerted Texas U.S. District Judge Amos Mazzant that it planned to challenge his August 31, 2017 order invalidating the Obama administration’s controversial 2016 overtime rule. The rule would have significantly expanded the number of executive, administrative and professional (“EAP”) workers eligible for overtime under the Fair Labor Standards Act (“FLSA”) by doubling the minimum salary required to qualify for overtime exemption from $23,660, to roughly $47,000 annually.

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Published: October 16, 2017

In a recent and precedential decision by the Third Circuit, employers are obligated to pay their employees for breaks of 20 minutes or less under the Fair Labor Standards Act. In an opinion penned by Third Circuit Judge, Theodore McKee, the Court reviewed the granting of partial summary judgment in favor of the U.S. Department of Labor on claims that Progressive Business Publications failed to pay its employees a minimum wage.

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Published: August 31, 2017

In a long awaited decision, a Texas federal judge struck down the Fair Labor Standards Act (“FLSA”) overtime rule finding that the Department of Labor (“DOL”) exceeded its delegated authority. The rule, which was blocked by injunction in November 2016, was set to raise the white collar exemption minimum salary requirement from $23,660 per year to $47,476 per year effective December 1, 2016.
 

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Published: June 12, 2017

Signaling a clear departure from Obama-era enforcement priorities, the Trump Administration announced on June 7, 2017 that it has withdrawn two Department of Labor guidance documents on worker classification and joint employer status. The worker classification Administrator Interpretation Letter (“AIL”) issued in 2015, strongly favored employee classification over independent contractor classification and took the position that almost all workers would be viewed as employees by the Department of Labor.

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