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New Administration Abandons Appeal of Obama Era Increases, Leaving Status Quo for Now

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On September 5, 2017, the U.S. Department of Justice (DOJ) dropped its appeal in support of the U.S. Department of Labor’s (DOL) intended increases to the Fair Labor Standards Act’s (FLSA) salary-basis test for the white-collar overtime exemptions. The appeal stemmed from a preliminary injunction issued by a federal district court in Texas, which halted the nationwide implementation of the DOL’s 2016 amendments to the FLSA. The DOJ’s request to dismiss the appeal comes just days after the same federal judge permanently struck down those amendments. More

DOL Takes Another Look at the Overtime Regulations

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The Department of Labor (DOL) recently issued a request for information (RFI) relating to the 2016 amendments to the Fair Labor Standard Act’s (FLSA) overtime regulations. The DOL seeks information “to aid in formulating” revisions to the amended regulations that remain subject to a nationwide injunction. Once again, companies face uncertainty regarding impending changes to the FLSA’s regulations. More

A Return to the “Direct Control” Standard for Joint Employers

Today, in a return to pre-Obama era standards, the U.S. Department of Labor (DOL) announced the withdrawal of two informal guidance letters impacting the “joint employer” doctrine. More

Federal Court Extends Deadline in Appeal of FLSA Amended Overtime Regulations While Government Decides Whether to Press Case or Drop It

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A hot topic in 2016 was the implementation of new regulations more than doubling the minimum required salary amount for the executive, administrative and professional exemptions under the Fair Labor Standards Act (FLSA). In late November 2016, a federal court in Texas enjoined the rules from taking effect, and in December, President Obama’s administration appealed that ruling. More

Uncertainty Over Status of FLSA White Collar Amendments Continues: DOL Appeals Injunction to Fifth Circuit

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As most employers know by now, on November 22, 2016, a federal court in Texas issued a preliminary injunction that, at least temporarily, halted the implementation of the U.S. Department of Labor’s (DOL) amendments to the Fair Labor Standards Act’s (FLSA) white-collar exemptions. The amendments were to have gone into effect on December 1, 2016, and would have more than doubled the salary requirements for exempt executive, administrative, and professional employees. Much to the business community’s chagrin, this saga continues.  More

Federal Court Blocks New Overtime Rule

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In a surprising turn of events, a federal court in Texas issued a preliminary injunction yesterday halting the nationwide implementation of the Department of Labor’s new overtime rule increasing the salary threshold for exempt employees to $47,476 per year (for additional information on the rule, see Honigman’s prior blog posts.)  More

While the Presidential Election is Over, Salary Increases for Exempt Employees Will Take Effect on December 1st! Is your Company Ready?

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The long-awaited presidential election is over. Although a new President will be sworn in next year, the amendments to the white collar exemptions are scheduled to take effect less than three weeks from now. Are you ready? More

FRANCHISORS FACE TOUGH CHOICES WHEN CONFRONTED WITH U.S. DEPARTMENT OF LABOR INVESTIGATIONS INVOLVING FRANCHISEES

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A franchisor may find itself between a rock and a hard place when the U.S. Department of Labor (DOL) comes calling; particularly when the call concerns franchisee compliance under the federal Fair Labor Standards Act (FLSA). On the one hand, a franchisor can refuse to cooperate. Though such refusal risks an aggressive response by the DOL, including costly litigation and increased damages claims. On the other hand, a franchisor can agree to cooperate. However, such cooperation is not without its own risks. Among other things, such cooperation may spur on “joint employer” claims under the FLSA (and other laws) against the franchisor. More

To Be or Not To Be an Uber Employee: That Is [and will Remain] the Question

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Federal judge probes deep on Uber’s proposed deal with drivers in 2 states as drivers in the other 48 sue, yet ride-sharing giant appears set to avoid trial on merits of misclassification issue

If you are waiting for an answer to the question of how workers in the “gig economy” should properly be classified, you probably should not hold your breath. More

Supreme Court Tells DOL “It Has Some Explaining to Do!”: High Court Holds that DOL’s Failure to Provide Sufficient Reasoning Regarding its Reverse in Position Invalidates Rule Change

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On June 20, 2016, the U.S. Supreme Court decided the case of Encino Motorcars, LLC v. Navorro, which concerned the Fair Labor Standards Act (FLSA) classification of service advisors working at automobile dealerships. While the High Court did not actually decide the classification issue, it sent a strong message to the U.S. Department of Labor (DOL) that it “has some explaining to do” before it reverses its position and changes its interpretation regarding FLSA exemptions. More