In recent years many employers have implemented mandatory arbitration agreements to require that legal disputes with employees be decided by a neutral arbitrator, rather than by jury trial. Arbitration agreements are coming under scrutiny as unfairly preventing employees from having their “day in court” and having access to jury trials – most recently with the
Supreme Court to Review FLSA Claim By Highly Compensated Offshore Employee
In Helix Energy Solutions Group Inc v. Hewitt, an en banc U.S. Fifth Circuit Court of Appeals issued a 12-6 ruling last year finding that a highly paid offshore supervisor (who was paid more than $200,000 per year on a day rate basis) was entitled to overtime premium pay because he was not paid
Leave Act Takes Effect April 1 and Other New DOL Guidance
Late Tuesday afternoon, March 24, 2020, the U.S. Department of Labor’s Wage and Hour Division issued guidance in the form of 14 questions and answers on the new COVID-19 leave act. Here is the link to the latest guidance. Some of the highlights are described below.
Although practitioners and commentators uniformly agreed that the act
The First of Three? DOL Releases Final Rule on Joint Employer Status
On January 12, 2020, the United States Department of Labor (“DOL”) released a final rule updating and revising the DOL’s interpretation of joint employer status under the Fair Labor Standards Act (“FLSA”). The rule is scheduled to be published in the Federal Register on January 16, 2020, and its effective date will be March 16,
To Be or Not To Be Exempt (the 2019 Proposed OT Rule)
The Trump Administration has released the new proposed rule changes to the salary requirements to be exempt from the overtime pay requirement under the Fair Labor Standards Act (FLSA).
Under the new proposed rule, the U.S. Department of Labor wants to increase the minimum salary threshold that must be paid in order for most executive,
Supreme Court’s Epic Systems Decision an Opportunity for Employers to Revisit the Use of Mandatory Arbitration Agreements
In May the United States Supreme Court issued a long-awaited decision in a trio of cases that concerned whether employers can lawfully use mandatory arbitration agreements containing provisions that preclude employees from pursuing employment claims on a class action basis – and instead require them to pursue their claims in an individual private arbitration proceeding
Overtime Violations Can Be Costly
A recent story from New Orleans demonstrates that overtime violations can be costly. In the case of a New Orleans bakery that paid employees for overtime at their straight time rate and paid some workers in cash, the issue cost the employer over $125,000 in back wages alone. Pursuant to the federal Fair Labor Standards
U.S. Supreme Court Overtime Ruling Signals Change
On April 2, 2018, the United States Supreme Court issued its opinion in Encino Motorcars, LLC v. Navarro. In a 5-4 decision, the Court ruled that automobile service advisors are not entitled to overtime under the federal Fair Labor Standards Act (“FLSA”). In the Encino Motorcars case, the Court was asked to decide whether
Back on Track? DOL’s Information Requests Suggest Changes to Overtime Exemptions May Be on the Horizon
Yesterday, the Department of Labor (“DOL”) Wage and Hour Division released a preview copy of a request for information (“RFI”) before issuing revised proposed overtime exemption regulations under the Fair Labor Standards Act (“FLSA”). The RFI is scheduled for publication in the Federal Register today, July 26, 2017, which will start a 60-day public comment
U.S. 5th Circuit Highlights Chasm Between Seaman Classification Under Jones Act and FLSA
In the recent case of Halle v. Galliano Marine Service, L.L.C., No. 16-30558, 2017 WL 1399697 (5th Cir. Apr. 19, 2017) the U.S. Fifth Circuit addressed for the first time whether ROV technicians, who are traditionally Jones Act seamen, qualify as seamen under the Fair Labor Standards Act (“FLSA”). The Court found that the