DOL Issues Guidance For Tracking Employee Telework Hours

Bernadette Hunton
Bernadette Hunton
08/27/2020
In response to the increase in pandemic-generated remote work, the DOL has issued a Field Assistance Bulletin (No. 2020-5) that offers guidance (applicable to both COVID and non-COVID telework arrangements) on how businesses should manage pay for such work. The guidance emphasizes that remote workers must be paid for all work that an employer knows or “has reason to believe” was performed, and applies a “reasonable diligence” standard to...
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DOL Will No Longer Seek Liquidated Damages As A Default Policy In Wage And Hour Cases

Vincent Jackson
Vincent Jackson
06/25/2020
The Department of  Labor has pulled back from its policy of seeking liquidated damages – or “double” damages – against employers in wage and hour investigations.  On June 24, 2020, the DOL issued a field assistance bulletin which stated that it will no longer apply the default policy of seeking pre-litigation liquidated damages from employers who are found to owe back wages to workers.  Specifically, the Department will not assess...
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4th Circuit Holds That IBM Can’t Have Their Cake and Eat It Too

Kollman & Saucier
Kollman & Saucier
06/08/2020
Justin Fessler, a sales information specialist, brought suit in Alexandria, Virginia against IBM for allegedly capping his sales commission on several large transactions. Fessler claimed that IBM represented to him orally, through PowerPoint presentations, and in practice, that his sales would not be capped.   In Fessler v. IBM, the United States Court of Appeals for the Fourth Circuit reversed a lower court’s decision granting IBM’s...
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DOL Issues New Final Rule on Retail or Service Establishment Overtime Exemption

Eric Paltell
Eric Paltell
05/19/2020
On May 19, 2020, the United States Department of Labor issued a new final rule that overhauls its 60-year old regulatory guidance on the types of industries that fall within the "retail or service establishment" overtime exemption.  The change may result in more employers being able to take advantage of this exemption. Under Section 207(i) of the FLSA, an employer who mets the definition of a retail or service establishment  is excused...
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And Now for Something Completely Different: Non-Covid DOL Opinion Letters

Darrell VanDeusen
Darrell VanDeusen
04/01/2020
The NLRB is shuttered.  Everyone at the EEOC is teleworking.  In the midst of all that is going on around us it is somewhat comforting I guess to know that there is still business as usual at the Department of Labor.  Last week, the DOL Wage and Hour Administrator Cheryl Stanton issued three new Opinion Letters interpreting the Fair Labor Standards Act (FLSA).  You can find all FLSA DOL Opinion Letters at...
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DOL Issues New Guidance On Joint Employment

Vincent Jackson
Vincent Jackson
01/21/2020
On January 16, 2020, the U.S. Department of Labor (DOL) issued a final rule that will significantly revise its longstanding interpretation of joint employer status under the Fair Labor Standards Act (FLSA).  This update marks the first substantive change to the federal regulation concerning joint employer status (29 CFR Part 791) in over 60 years, and provides a new framework for assessing joint employer status when an employee performs work for...
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Reminder: Maryland Minimum Wage Increases January 1, 2020

Randi Klein Hyatt
Randi Klein Hyatt
12/31/2019
As we blogged about earlier this year, the General Assembly voted to override Governor Hogan's veto of legislation increasing the minimum wage.  This means the minimum wage in Maryland will increase to $15 per hour by 2025 for employers with 15 or more employees (and by 2026 for employers with less than 15 employees).  The increase is gradual, and tomorrow, January 1, 2020, the first increase will occur when the minimum wage will move to...
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Department of Labor Clarifies “Regular Rate”

Frank Kollman
Frank Kollman
12/19/2019
Most employers are familiar with the terms "minimum wage" and "hourly rate," but many are not familiar with the term "regular rate."  Because overtime compensation must be paid at one and a half times an employee's "regular rate," not "hourly rate," you should.  Let's start with an example of the difference. Assume an employee's hourly rate is $20.00 an hour, but he receives bonuses and commissions based on productivity.  His...
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Maryland Appellate Court Adopts Federal Overtime Standard

Eric Paltell
Eric Paltell
12/02/2019
Maryland's Wage and Hour Law is closely modeled on the federal Fair Labor Standards Act. Similar to the FLSA, Section 3-415 of the Maryland Labor and Employment Article requires that employers pay overtime at rate of "1.5 times the usual hourly wage."  A recent decision from the Maryland Court of Special Appeals held that, when an employee is paid a "day rate" (i.e., a fixed amount of money per day worked, without regard to the number of hours...
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DOL Rolls Out New and Proposed Rules Regarding FLSA Pay Requirements

Kollman & Saucier
Kollman & Saucier
11/11/2019
The U.S. Department of Labor (DOL) recently took two actions implicating and potentially implicating, respectively, how employees are paid under the federal Fair Labor Standards Act (FLSA). A New Rule First, on September 27, the DOL issued a final rule on implementing the exemptions from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees.  In general, the FLSA requires...
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