SCOTUS Decision Shows that Highly-Compensated Employees Can Still Be Eligible for Overtime Pay

A recently decided case by the U.S. Supreme Court shows that even highly-compensated employees can be mislabeled as overtime-exempt under the Fair Labor Standards Act (FLSA). On February 22, 2023, the Supreme Court addressed this very matter in its decision in Helix Energy Solutions Group, Inc. v. Hewitt. More ›

DOL Clarifies Scope of Fluctuating Workweek Overtime Pay Calculation

By definition, the hallmark of the fluctuating workweek (FWW) is that the hours fluctuate. Now, following another opinion letter from the U.S. Department of Labor (DOL) on the topic, employers know that this does not mean fluctuating below 40 hours per week.

The DOL was asked to weigh-in on whether an employee's time had to dip below 40 hours in order to qualify for the FWW method of calculating overtime pay. In answering the inquiry, the DOL asserted that there is nothing in the language of the regulation that requires weekly hours to vary both above and below the 40-hour threshold. More ›

Overtime Rules Update: DOL Adjusts Minimum Salary Requirement for Salaried Employees

The United States Department of Labor (DOL) made official a new regulation increasing the minimum salary level that salaried employees must be paid to be exempt from overtime. As of January 1, 2020, if a salaried employee makes less than $684 per week—or $35,568 per year—the employee will be entitled to overtime for the hours worked beyond 40 hours in a week. More ›

DOL Proposes Tweaks to FLSA Regular Rate Regulations, Changes Won't Impose New Regulatory Requirements

The Wage and Hour Division of the U.S. Department of Labor (DOL) has announced proposed changes to the regular rate regulations of the Fair Labor Standards Act (FLSA). According to the DOL, the proposed changes are focused on updating and clarifying the regular rate regulations, and intended to encourage employers to provide additional benefits to workers without inviting litigation. More ›

The End of the Saga of DOL's Proposed Changes to FLSA Overtime Rules?

For nearly four years, proposed Department of Labor (DOL) rule changes that would expand the number of workers eligible for overtime wages have remained in limbo. The latest twist in this long-standing saga came last week, when the DOL published a new "Notice of Proposed Rule Making" (NPRM), which sets a new salary threshold for overtime pay at $679 per week ($35,308 per year). Under these proposed rules, any salaried employee earning less than that amount, will be entitled to overtime for the hours the employee works beyond forty (40) in a week. More ›

DOL Says Hello to Primary Beneficiary Intern Test, Goodbye to 6-Factor Test

Earlier this month, the U.S. Department of Labor announced it will now use the primary beneficiary test” to determine whether an intern must be paid.  Its announcement comes in the wake of the 9th Circuit’s adoption of the test, joining the 2nd, 6th, and 11th Circuits.  With the announcement, the DOL also updated Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act. These moves displace a 6-part test the DOL adopted in 2010 that required all factors weigh in favor of the employer. More ›

Appealed! Overtime Rule Saga Continues

On October 30, 2017, the Department of Labor (DOL) indicated that it intends to appeal to the Fifth Circuit a federal district court ruling from 2016 that invalidated Obama-era overtime changes. More ›

Obama Administration’s Overtime Rule Invalidated

A federal judge from Texas struck down the Obama administration’s overtime rule, finding the salary-level test set forth by the Department of Labor did not account for an analysis of an employee’s job duties for purposes of determining whether an employee is exempt from overtime pay.  A copy of the court's opinion is available here. More ›

Uncle Sam Wants You . . . To Tell Him a Little About Overtime

A Department of Labor (DOL) 2016 Final Rule pushed federal regulations under the Fair Labor Standards Act (FLSA) that would have more than doubled the “threshold” below which nearly every salaried employee would be entitled to overtime. In November 2016, a federal district court prevented the new threshold from coming into effect, and the subsequent election of President Trump called into doubt whether revised rules would ever be implemented. More ›

Overtime Expansion Over? Texas District Court issues Nationwide Injunction of Expanded Federal Overtime Rules

What Happened?

A federal judge has blocked the U.S. Department of Labor (DOL) from implementing new regulations under the Fair Labor Standards Act (FLSA) that expand overtime eligibility to 4.2 million salaried workers. The preliminary injunction issued yesterday found that the expanded overtime eligibility rules were contrary to the FLSA and Congressional intent.

The rules were supposed to become effective December 1, 2016. They grant overtime eligibility to millions of salaried white-collar employees whose salaries were not above a threshold of $921 per week ($47,892 annually), but whose duties otherwise would have made them exempt from overtime. With the injunction, the new regulations are on hold until the court issues a final decision. More ›