https://www.honigman.com/Employers-Wage-and-Hour-Advisor Sat, 06 Jun 2026 01:04:54 -0400 https://www.honigman.com/Employers-Wage-and-Hour-Advisor/dol-suspends-enforcement-of-its-march-2024-independent-contractor-rule Matthew Disbrow, Matthew Ritzman, Ph.D. Employers-Wage-and-Hour-Advisor/dol-suspends-enforcement-of-its-march-2024-independent-contractor-rule Fri, 01 Aug 2025 09:00:01 -0400 Recently, the U.S. Department of Labor (“DOL”) Wage and Hour Division issued a significant policy shift, announcing it will no longer enforce or apply the 2024 Final Rule on independent contractor classification. The DOL specifically instructed its investigators not to use the 2024 Rule’s analysis in enforcement matters. This move effectively suspends the DOL’s reliance on the more restrictive, multi-factor economic reality test introduced in the 2024 Rule, which had aimed to narrow the circumstances under which workers could be classified as independent contractors under the Fair Labor Standards Act (FLSA).

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/supreme-court-clarifies-burden-of-proof-for-flsa-exemptions Marilyn Yousif Employers-Wage-and-Hour-Advisor/supreme-court-clarifies-burden-of-proof-for-flsa-exemptions Tue, 04 Mar 2025 09:00:02 -0500 The U.S. Supreme Court recently settled a long-standing dispute among federal appellate courts regarding the standard of proof required for employers to establish exemptions under the Fair Labor Standards Act (“FLSA”). In E.M.D. Sales, Inc. v. Carrera, the Court ruled that employers may prove a FLSA exemption by a "preponderance of the evidence" only, rather than the more stringent "clear and convincing evidence" standard.

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/seventh-circuit-finds-flsa-requires-compensation-for-travel-time-to-overnight-assignment-that-occurs-during-employees-workday Brett Bonfanti, Matthew Disbrow Employers-Wage-and-Hour-Advisor/seventh-circuit-finds-flsa-requires-compensation-for-travel-time-to-overnight-assignment-that-occurs-during-employees-workday Tue, 28 Jan 2025 09:00:03 -0500 Recently, the Seventh Circuit Court of Appeals (which covers Illinois, Indiana and Wisconsin) held that, under the federal Fair Labor Standards Act (“FLSA”), nonexempt employees must be compensated for travel time spent away from home when that travel cuts across their workday. The decision highlights some of the pitfalls travel time creates for unwary employers, and underscores the need for businesses to review their travel time policies. 

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/fifth-circuit-vacates-dols-tip-credit-rule Haba Yono Employers-Wage-and-Hour-Advisor/fifth-circuit-vacates-dols-tip-credit-rule Wed, 25 Sep 2024 09:00:04 -0400 On August 23, 2024, the Fifth Circuit struck down the U.S. Department of Labor’s (“DOL”) “80/20” rule on how tipped employees must be paid under the Fair Labor Standards Act (“FLSA”). This is welcomed news for employers in the restaurant and hospitality sectors as navigating this complex rule can be challenging. However, employers should beware that there are a growing number of states that have done away with the tip credit entirely and require full minimum wage payments for all work.

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/california-implements-employer-favorable-paga-reform Matthew Disbrow, Michael Dauphinais, Brett Bonfanti Employers-Wage-and-Hour-Advisor/california-implements-employer-favorable-paga-reform Wed, 24 Jul 2024 09:00:05 -0400 Filings under California’s Private Attorneys General Act (“PAGA”) hit an all-time high in 2023, with 7,780 PAGA notices filed with the California Department of Industrial Relations.  As an attempt to rein in the tidal wave of PAGA litigation, the California legislature and Governor Newsom enacted employer-friendly amendments to PAGA amid the looming threat of a November 2024 ballot initiative that, if approved, would have largely repealed PAGA.

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/dol-announces-ai-guidelines-for-employers D'Antae Gooden Employers-Wage-and-Hour-Advisor/dol-announces-ai-guidelines-for-employers Wed, 26 Jun 2024 09:00:06 -0400 On May 16, 2024, the U.S. Department of Labor (“DOL”) reminded employers that they must remain in compliance with federal labor standards as employers adopt artificial intelligence or other automated systems to streamline Human Resources functions in the workplace. The DOL outlined several artificial intelligence guidelines (“AI Guidelines”) to provide employers that create and deploy artificial intelligence (“AI”) with guidance for designing and implementing these emerging technologies in ways that enhance job quality and protect workers’ rights.

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/how-transporting-wonder-bread-led-to-a-potential-class-action Jennifer Muse Employers-Wage-and-Hour-Advisor/how-transporting-wonder-bread-led-to-a-potential-class-action Fri, 17 May 2024 09:00:07 -0400 Wonder Bread, Butterscotch Krimpets, and Jumbo Honey Buns were featured in a recent unanimous decision by the Supreme Court of the United States. But delicious baked goods were not the order of the day—rather, the Court held that a transportation worker does not need to work in the transportation industry in order to be exempt from arbitrating their disputes under the Federal Arbitration Act (FAA). So, a distributor who transports Wonder Bread, Butterscotch Krimpets, and Jumbo Honey Buns also cannot be compelled to arbitrate their claims under the FAA. 

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/more-ways-qualified-professional-asset-managers-can-lose-exemption Employers-Wage-and-Hour-Advisor/more-ways-qualified-professional-asset-managers-can-lose-exemption Fri, 19 Apr 2024 09:00:08 -0400 The U.S. Department of Labor (“DOL”) recently published amendments to narrow the Class Prohibited Transaction Exemption (PTE), also known as the qualified professional asset manager (“QPAM”) Exemption. The exemption allows QPAMs to manage multiple investments, notwithstanding general prohibitions under the Employee Retirement Income Security Act (“ERISA”). Under the amendments, QPAMs are ineligible for the exemption if they committed certain criminal conduct. The DOL also requires QPAMs to be more transparent by changing reporting and administrative duties. The effective date of this new amendment is July 17, 2024.

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/michigans-right-to-work-legislation-a-defining-policy-shift Marilyn Yousif Employers-Wage-and-Hour-Advisor/michigans-right-to-work-legislation-a-defining-policy-shift Wed, 06 Mar 2024 09:00:09 -0500 Michigan historically has been at the forefront of labor law changes. This remains the case with the implementation and recent repeal of Michigan’s right-to-work legislation. Michigan workplaces are no longer governed by a “right-to-work” law, as the repeal took effect on February 13, 2024. Once again employees can be required to join a union to keep their jobs. Employers and employees alike question what effects this repeal may have on the relationship between labor unions and Michigan employers.

]]> https://www.honigman.com/Employers-Wage-and-Hour-Advisor/u-s-department-of-labors-changes-poised-to-take-effect-in-2024-but-challenges-likely Elaina Bailey Employers-Wage-and-Hour-Advisor/u-s-department-of-labors-changes-poised-to-take-effect-in-2024-but-challenges-likely Wed, 24 Jan 2024 09:00:10 -0500 The U.S. Department of Labor (“DOL”) is poised to make significant changes this year to various wage-and-hour regulations interpreting the Fair Labor Standards Act (“FLSA”). The changes are expansive and include both the already released independent-contractor test and increases to the salary threshold for white collar exemptions. These changes will effect employers across the country in all industries. Nonetheless, they are not going unchallenged. The expected legal challenges to the changes have already begun and will likely continue to mount.

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