Fair Labor Standards Act (FLSA)

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The 2018 federal appropriations bill signed into law on March 23rd includes an addition to the Fair Labor Standards Act (FLSA) stating that “[a]n employer may not keep tips received by its employees for any purposes, including allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit.” The amendment also nullifies certain regulations issued by the Department of Labor in 2011, including regulations which prohibited an employer from using an employee’s tips as part of an invalid tip pool even where the employer was paying the employees the full minimum wage without utilizing a tip credit.… Read More...

On January 5, 2018, the United States Department of Labor announced that, going forward, it would utilize the “primary beneficiary” test for determining whether interns are employees under the FLSA, consistent with recent rulings from appellate courts. Its updated Fact Sheet #71, a copy of which is linked here, explains the test, which examines “the ‘economic reality’ of the intern-employer relationship to determine which party is the ‘primary beneficiary of the relationship.” Fact Sheet #71 outlines 7 factors that courts should apply on a fact specific basis in making this determination, with no single factor being dispositive:

  1. The extent to which the intern and the employer clearly understand that there is no expectation of compensation.
… Read More...

South Carolina is one of 21 states that have joined in a federal lawsuit filed in Texas contending that the “President is trying to rewrite [the Fair Labor Standards Act].” To recap, the rule in question is actually an amendment to the FLSA’s salary basis test increasing the minimum salary amount for exempt employees from $23,660 to $47,476 annually. … Read More...

We have closely monitored and continued to receive inquiries regarding the new rules that will take effect on December 1, 2016, regarding who is exempt from the Fair Labor Standards Act’s overtime rules. As the effective date looms, the clock is ticking for employers to ensure they will be in compliance under the new rules, which are forcing many employers to make changes.… Read More...

After much anticipation (as discussed previously on our blog here), the final rule regarding the salary threshold for exempt executive, administrative, professional and outside sales and computer employees under the Fair Labor Standards Act was announced today.  The good news is that the rule does not go into effect until December 1, 2016, so employers have time to assess and comply. … Read More...

tipThe plethora of litigation against restaurants for alleged improper tip practices continues.  Follow this link to see new litigation brought against a restaurant for requiring tipped employees to perform non-tipped work.

If a restaurant takes a tip credit, those employees who are paid pursuant to the tip credit cannot perform non-tipped work more than 20% of the time.  … Read More...

blog2015HRLawUpdateBannerHaynsworth Sinkler Boyd’s Employment Team is pleased to offer the 2015 HR Law Update in six cities this Fall.

Hot Topics. Through these six sessions, you’ll learn about hot topics HR managers are facing today: Immigration, Criminal Background Checks, Independent Contractors, FLSA Violations, Pregnancy Non-Discrimination, and more.… Read More...

New guidance released July 15, 2015, from the Department of Labor (DOL) narrows independent contractor classification so that “most workers are employees under the FLSA.” The DOL’s guidance makes it clear that the amount of control an employer has over a worker is not as important in properly classifying the worker.… Read More...