One of the biggest criticisms I have of the FLSA is that it provides no safe harbor or protection for an employer, who having realized it made a wage and hour mistake, to voluntarily self-report and correct its mistake. Instead, it can encourage employers who learn of a potential FLSA violation that has not otherwise been discovered to continue its current practice hoping that the violation will not be discovered. This week the U.S. Department of Labor announced its Payroll Audit Independent Determination (PAID) program that takes a step in providing employers with an incentive to voluntarily identify and self-correct wage and hour violations. The stated purpose of the program is to
Continue Reading Department of Labor Rolls Out Pilot Program for Employers to Correct Inadvertent Wage and Hour Violations
Wage & Hour
U.S. Department of Labor Revises and Clarifies Unpaid Intern Test
The U.S. Department of Labor recently abandoned its six-factor internship test in favor of the seven-factor primary beneficiary test utilized by most Courts. The primary benefit test adopts a temporal limitation for the internship that was not in the old six-factor test and incorporates two elements linking eligibility to the intern’s education programs and academic…
Employers Using Fluctuating Workweek Method of Overtime Compensation Should Memorialize Understandings in Writing
In Texas, an employer can satisfy its overtime obligation to nonexempt employees whose hours fluctuate from week-to-week and are paid on a salary basis, by using the fluctuating workweek (FWW) method of overtime compensation. Under the FWW, a nonexempt employee who has hours of work which fluctuate from week to week may be paid a…
Fifth Circuit Holds Nonemployee Lacks Claim but Employee Can Recover Emotional Distress Damages in FLSA Retaliation Suit
The Fifth Circuit recently held that a plaintiff-employee in an FLSA retaliation claim can recover damages for emotional distress but that the statute does not provide a retaliation cause of action for a nonemployee spouse. In Pineda v. JTCH Apartments, LLC, an employee of the apartment complex who did maintenance work around the property…
EEOC to Target Companies Using Non-traditional Working Relationships
Yesterday, the EEOC published its four-year Strategic Enforcement Plan for fiscal years 2017 through 2021. The Plan is the Commission’s list of areas of priority where it intends to focus its resources in the next four years. The purpose of the Plan is to identify those areas the Commission believes are likely to have a…
Use the New Overtime Rules to Correct Misclassified Workers
This week the DOL announced changes to the white collar overtime exemptions that take effect December 1, 2016. Every employment lawyer with a newsletter, blog or soapbox has written some summary of the new regulations. And while the regulations only effect the executive, administrative, professional and high compensated exemptions, Daniel Schwartz, a Connecticut employment…
DOL Announces Details of Final Rule Changing Regulations on the Overtime Exemptions
Last night the U.S. Department of Labor announced details of its long-awaited Final Rule on changes to the regulations interpreting the overtime exemptions to the Fair Labor Standards Act (FLSA). The FLSA is the federal law requiring most employers to pay minimum wages and overtime to nonexempt employees. The Final Rule raises the minimum salary…
From the Archives: Spring Break Edition
While many of the kids (and a few employment law attorneys) are on Spring Break, I thought I would dust off a few posts from the archives. Back in 2009 I wrote about the rules that apply to the payment of accrued but unused vacation time on termination of employment in Texas. If you are…
Paying Nonexempt Employees at Different Rates for Different Work
With the slowdown in the oil patch, many service providers are looking for ways to better match employee compensation with reduced amount of work and revenue available without having to reduce headcount. One way to accomplish this objective is to pay different rates for different work. For example, a company may elect to pay a…
AT&T Warning Employees to Update Skills or Become Obsolete?
The New York Times profiled AT&T’s corporate education program where the company offers to pay for all or part of the classes employees take to help modernize their skills. The program has been in place for approximately two years and the purpose of the program, according to the article, is to “retrain its 280,000 employees…