Fair Labor Standards Act (FLSA) Compliance Audit

The Fair Labor Standards Act, or FLSA, sets standards for full and part-time employees related to minimum wage record keeping, youth employment and overtime pay. The Department of Labor’s Wage and Hour Division enforces FLSA and has the power to investigate the practices, policies and procedure of employers and interview employees to determine whether every…

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U.S. Department of Labor Issues Proposed Worker Classification Rule

Last week, the U.S. Department of Labor’s (DOL) Wage and Hour Division announced the publication of a highly anticipated notice of proposed rulemaking (NPRM) on worker classification under the Fair Labor Standards Act (FLSA). The proposed rule, the latest in a tumultuous line of regulations on the independent contractors topic, would establish a framework for applying a redrawn…

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Obligations to Employees Under Severe Weather Conditions

With Hurricane Ivan wreaking havoc last week, our thoughts go to those who were in the path of the ever-strengthening storm. The first priority for all affected is safety, but severe weather does also raise numerous employment law issues. Employers are again reminded that weather can affect your workplace. With hurricane season underway, we have…

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Internship Laws In Review: Ensuring Your Next Internship Program Does Not Run Afoul of State and Federal Labor Laws

As internship season ends, now is a perfect time for employers to review their internship programs to ensure compliance with federal, state and local labor and employment laws. Overview of Internships Internships are generally intended to be educational opportunities for students or recent graduates to learn invaluable on-the-job skills, how to effectively work in a…

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Holding On, Loosely: Incentives for Employee Retention

Let’s talk about problems with retention bonuses and overtime—as if finding qualified workers wasn’t tough enough. According to the most recent report from the Bureau of Labor Statistics, nonfarm employment rose by 428,000 in April 2022. However, some sectors are still struggling and “now hiring” or “help wanted” signs are everywhere. As a result, many…

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DOL Overtime Claims Are on the Rise

The U.S. Department of Labor (DOL) is recovering an increasing amount of damages in overtime claims as it goes after employers that are misclassifying workers or miscalculating overtime. The Biden administration has signaled a shift in focus away from compliance and toward enforcement. One of the earliest indications of that shift was the termination of…

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Department of Labor to Add 100 Wage and Hour Investigators

The U.S. Department of Labor will add 100 investigators to support its Wage and Hour Division, the agency announced Feb. 1. Investigators will conduct investigations to ensure workers are receiving their full wages, promote compliance through outreach and public education programs and aid in efforts to fight against worker retaliation and the misclassification of workers…

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Automatic Gratuities Aren’t Tips Under the FLSA, 4th Cir. Says

Automatic gratuities are not tips as defined by the Fair Labor Standards Act (FLSA), the 4th U.S. Circuit Court of Appeals ruled (Wai Tom v. Hospitality Ventures LLC No. 18-2509 (4th Cir. Nov. 24, 2020)). Though their hourly wage, tips and automatic gratuities exceeded the FLSA’s minimum-wage and overtime requirements, servers at a North Carolina restaurant…

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