More On Joint Employer Status From The Department Of Labor

Earlier this week, the Wage and Hour Division (WHD) of the Department of Labor issued an Administrator's Interpretation No. 2016-01 (AI) on joint employment under the Fair Labor Standards Act (FLSA) and the Migrant Seasonal Agricultural Worker Protection Act (MSPA).  The guidance reconfirms existing WHD policy, which identifies common scenarios in which two or more employers jointly employ an employee and are thus jointly liable for compliance....
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No FLSA Overtime Exemption for GEICO Fraud Investigators

Kollman & Saucier
Kollman & Saucier
12/30/2015
Santa did not bring GEICO the gift it was hoping for this Christmas. On December 23, the Fourth Circuit issued its decision in Calderon v. GEICO Gen. Ins. Co., No. 14-2111, deciding that the insurance company’s fraud investigators perform non-exempt work under the Fair Labor Standards Act and, therefore, are entitled to overtime pay. The FLSA requires that employers pay overtime for each hour an employee works beyond 40 in a week. An employee...
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Unpaid Student Nurses Get Clearance To Proceed With Wage Claims

Kollman & Saucier
Kollman & Saucier
09/20/2015
Unpaid interns have long been a questionable group from a wage and hour risk perspective.  In Schumann v. Collier Anesthesia, P.A., No. 14-13169 (11th Cir. 2015), the Eleventh Circuit joined the Second and Sixth Circuits in setting aside the "antiquated" Department of Labor six-factor internship analysis in favor of a more stringent "primary beneficiary" test. In Schumann, 25 unpaid student registered nurse anesthetists participated in a clinical...
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Time To Get To Take A Meal Break May Be Compensable

Darrell VanDeusen
Darrell VanDeusen
09/18/2015
That headline makes no sense, right?  Well, according to the Fifth Circuit, it’s possible that employees who are required to take meal breaks away from their posts (or desk or cubicle, I suppose), may be entitled to pay for the time they spend “in transit” to the break site.  Naylor v. Securiguard, Inc., 2015 U.S. App. LEXIS 16421 (5th Cir. Sept. 15, 2015). Security guards at the Mississippi U.S. Naval Air Station Meridian are required to...
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Second Circuit Adopts New Intern Test

Kollman & Saucier
Kollman & Saucier
07/10/2015
The United States Court of Appeals for the Second Circuit recently established a new test to determine whether an individual should be classified as an intern, and thus not subject to the FLSA and local wage and hour law. Rejecting the test employed by the Department of Labor (which filed an amicus brief with the appellate court), the Second Circuit’s new test is less rigid and seems, at least at first blush, to give more weight to the educational...
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Obama Administration Seeks to More Than Double Salary Requirement for Overtime Exemption

Kollman & Saucier
Kollman & Saucier
07/02/2015
On June 30, 2015, the Obama Administration unveiled a long-anticipated proposed rule increasing the threshold amount required to be paid to certain salaried workers before they are exempt from receiving overtime. The current rule is that any salaried worker who earns below $455 a week or $23,660 per year (i.e., less than the poverty line for a family of four) must receive overtime. The proposed rule would more than double that to $50,440 (i.e. close...
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DOL Announces Revised Overtime Regulations

Kollman & Saucier
Kollman & Saucier
05/06/2015
Secretary of Labor Thomas Perez reported on the Department’s blog yesterday that he has submitted a proposed revised rule to the Office of Management and Budget to address what President Obama believes are  deficiencies in federal laws governing overtime pay. Working off the assumption that overtime pay rules have eroded over the years and that a high number of salaried workers who should be getting overtime are not eligible for overtime pay, the...
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Casino Dealer “Trainees” Who Attended A 12-Week “Dealer School” Are Not “Employees”

Kollman & Saucier
Kollman & Saucier
04/29/2015
The US District Court for Maryland dismissed a complaint filed by three “trainees” of the Maryland Live! Casino’s 12-week “dealer school.” Harbourt v. PPE Casino Resorts Maryland, No. CCB-14-3211 (Apr. 21, 2015). The plaintiffs alleged that they attended the Casino’s complimentary 12-week “dealer school” training course for table games (only one of the three actually completed the course and was employed as a dealer at the Casino)....
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More on the Dangers of Unsupervised FLSA Settlements

Kollman & Saucier
Kollman & Saucier
03/26/2015
Suppose that you are an employer who has been found to have violated the Fair Labor Standards Act (FLSA). In an attempt to curb future liability, you calculate the overtime owed to your employees who were mistakenly misclassified as exempt and print checks informing the employees that the amount of those checks represents “full payment . . . [for] wages earned, including minimum wage and overtime, up to the date of the check.” Can employees then...
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Supreme Court Okays DOL's FLSA Interpretative Rule Change

The Supreme Court has confirmed that federal agencies, including the Department of Labor (DOL), are exempted from the Administrative Procedure Act's formal notice-and-comment rulemaking requirements when changing interpretative rules, as explained in its unanimous decision Perez v. Mortgage Bankers Ass'n, No. 13-1041, (U.S. March 9, 2015).  With this decision, the Supreme Court overruled the long established doctrine from Paralyzed Veterans of...
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