The Fair Labor Standards Act (FLSA) and overtime regulations have been in the headlines lately, with a focus on the evolving nature of labor laws and little-known details that could surprise you. Of special note are proposed overtime rule changes, which are being submitted to the White House for review.
This month we bring you important headlines from around the web that could affect the way your company handles your payroll policies. Check out the articles below.
Via Littler. The U.S. Department of Labor is sending its draft of the long-awaited Notice of Proposed Rulemaking (NPRM) on the “white collar” overtime exemptions to the White House Office of Management and Budget (OMB) for review. OMB review is the final step before publication of the proposed rule in the Federal Register. If adopted as drafted, the proposed rule would replace the final rule issued in 2016. Get the details here.
Via MLive. One lawsuit is challenging the legality of a tip pool at a Michigan-based restaurant chain. According to the lawsuit, Los Tres Amigos employees were required to forfeit a percentage of their tips to a “tip pool,” which were supposed to be distributed among various employees working during the shift. FLSA allows tip pools, but only under certain circumstances. Make sure you understand the details!
Find out how Time Bank makes it easy to stay on top of overtime regulations.
Via Business Management Daily. The Department of Labor continues to aggressively pursue employers who misclassify workers. A federal judge in Oregon recently approved an agreement that pays out a $3.2 million settlement, to be split among 120 courier drivers who were unlawfully classified as contractors. When can you legally convert employees to contractors, and what are the consequences for doing it illegally? Find out here!
Via SHRM. Employers can generally use the fluctuating workweek (FWW) method to calculate overtime pay under the Fair Labor Standards Act (FLSA) if certain requirements are met. But you can't use this method if you're also providing incentive pay, according to a ruling by the 5th U.S. Circuit Court of Appeals. This article breaks down the scenario and gives professional pointers to guide your pay policies, moving forward.
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