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Important FLSA News: Proposed Changes, a Lawsuit and Jail Time for Violators
No CommentsThe Fair Labor Standards Act has been in the news a good bit recently. First, President Obama has announced possible changes to the way overtime is treated for white collar employees. Second, a former employee of a suburban Philadelphia nursing home has filed a lawsuit against the facility stating that time spent maintaining company-required uniforms should be compensable, bringing the way uniform costs are reimbursed under scrutiny. And finally, regulatory authorities are now increasingly seeking jail time for those who violate the FLSA.
This week I’ve been reading about these FLSA issues and am sharing these articles to help you understand what you need to know.
President Proposes New Overtime Pay Rules. The Law Firm of Josh Borsellino: “In February, the Obama administration is expected to announce a proposed new rule under the Fair Labor Standards Act, or FLSA, which governs overtime pay in Texas and across the country, which affects which employees can be labeled as “exempt” from overtime pay. Currently, workers making more than $455 per week (which translates to $23,660 annually), may be exempt under the ‘white collar’ exemptions…President Obama and other labor advocates have criticized the current rules as exempting too many working Americans from overtime pay. The typical example of a worker who may be unfairly classified as exempt is a low-level fast food worker who is labeled an ‘assistant manager’ and denied overtime pay, even though he or she makes a modest amount of money.”
DOL Sets February 2015 Deadline for New FLSA “White Collar” Overtime Exemption Regulations. Wage & Hour Insights: “As we have discussed in the past, any proposed changes to the overtime regulations are subject to the federal Administrative Procedure Act’s rulemaking process, which means the administration would need to complete a number of time-consuming steps before any rule change could take effect. These steps include the proposed February 2015 notice of proposed rulemaking followed by a public comment period. Then, the DOL would need to hear testimony, consider public comments, and have a final version of the revised regulations approved by [Office of Management and Budget’s Office of Information and Regulatory Affairs]. Typically, the public comment period will extend at least 30 days.”
New rule on White-Collar Overtime Pay Pushed Back to February. Business Management Daily: “The proposed rule could make overtime pay available to as many as 3.1 million more management employees who are now considered exempt under the Fair Labor Standards Act (FLSA). President Obama directed Labor Secretary Thomas Perez to propose rules to ‘update and modernize America’s overtime pay system, so that millions of our nation’s salaried workers will have the protections of overtime pay.’”
FLSA Trip Wires When Paying for Uniforms. Corporate Counsel: “Should uniform pay be uniform? Shardé Thomas of Liebert Cassidy Whitmore says in reality it’s anything but, which can cause problems for employers under the Fair Labor Standards Act. Many public employers require their employees to wear uniforms and thus reimburse the cost of maintaining them. But others give their employees a little bit extra, which counts as additional compensation and causes confusion under the FLSA.”
Aggressive FLSA Enforcement May Now Mean Jail Time. WeComply Compliance Blog: “The recent arrest of a New York restaurant owner for failing to pay her employees minimum wage and overtime pay highlights the aggressive efforts currently used to enforce employment laws like the Fair Labor Standards Act (FLSA). Both state and federal regulators have been increasingly willing to add jail time for employers who seek to cut costs by avoiding overtime requirements or misclassifying employees. Despite the lack of previous misconduct, the restaurant owner faces a maximum jail term of one year, a criminal fine of up to $20,000 and restitution to the five employees involved.”
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