A recent United States Supreme Court decision provided two reminders for employers utilizing a day-rate compensation scheme. First, employers must pay their day-rate employees overtime or risk potential liability under the FLSA. Second, employers cannot shield themselves from FLSA overtime liability by directing the Court to only their annualized compensation of employees or their job
FLSA
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…
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…
Fifth Circuit Holds Mandatory Travel Time May Render Meal Periods Compensable under FLSA
The wave of wage and hour collective actions being filed and litigated in the district courts in the Fifth Circuit are making their way to the court of appeals. Last week the U.S. Court of Appeals for the Fifth Circuit issued an opinion in an FLSA case over the compensability of meal periods provided by…
12 Signs You May Have a Wage and Hour Problem (and Should Call an Employment Lawyer Now)
There has been an explosion of wage and hour collective actions failed against Texas employers in the last five years. This has been particularly prevalent in the oil field services sector. If you are a Texas employer, and using any of 12 pay practices below, you should consult with an employment lawyer to ensure you…
Don’t Forget to Consider Whether Year-End Bonuses Trigger Overtime Adjustments
As we get to the end of the year, management committees and corporate boards are in the process of approving year-end bonuses for employees. A frequently overlooked wage and hour mistake is failing to include non-discretionary bonuses in the regular rate of pay for non-exempt employees.
In calculating the regular rate of pay on which …
Fifth Circuit Confirms Use of Fluctuating Workweek Method of Overtime Calculation in Misclassification Case
In settlement negotiations and trial of FLSA overtime misclassification cases, there is usually a disagreement between the parties as to how the unpaid overtime should be calculated. Attorneys representing employees typically want overtime calculated using a 1.5 times the regular rate of pay for each overtime hour that was worked. Attorneys representing companies typically want to utilize…
Finally, Private Litigants Can Settle Bona Fide FLSA Disputes Without DOL or Court Supervision!
Some of you may be surprised to learn that conventional wisdom was that claims arising under the Fair Labor Standards Act (the federal law requiring the payment of minimum wage and overtime to most employees) cannot be released or waived without court or Department of Labor supervision. I certainly thought that until several years ago when I had …
Fifth Circuit Holds 24 Hour Fitness Arbitration Agreement Illusory and Unenforcable
24 Hour Fitness operates health clubs and fitness facilities across the country. As part of its operations, 24 Hour Fitness employs sales representatives. As a condition of employment, employees are required to enter into arbitration agreements to arbitrate their employment disputes with their employer. FLSA claims (i.e., overtime and minimum wage claims) are covered within the scope of the…