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US Supreme Court Rules Highly Compensated Employee Is Not Exempt from Overtime

On February 22, 2023, the US Supreme Court held in Helix Energy Solutions Group, Inc. v. Hewitt that an employee who was paid nearly $1,000 each day he worked was not exempt from the Fair Labor Standards Act (FLSA) and therefore owed overtime for the work he did. This case turned on an interpretation of the FLSA regulations, which exempt from the overtime requirement certain bona fide executive, administrative and professional employees.

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How Employers Can Determine COVID-19 Test Mandate Costs

Even though the US Supreme Court blocked the US Occupational Safety and Health Administration’s (OSHA) vaccinate-or-test mandate for most employers, there is still confusion around who covers the cost for employee COVID-19 tests. In this Law360 article, McDermott’s Dawn Peacock outlines what employers need to know.

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Tenth Circuit Compels Arbitration in Overtime, Joint Employer Case

A recent US Court of Appeals for the Tenth Circuit ruling determined that a pipeline inspector’s Fair Labor Standards Act (FLSA) lawsuit against an energy company could not be adjudicated without involving the subcontractor that paid his wages. According to this Law360 article, the Tenth Circuit ruled that the inspector was trying to play “fast and loose with the courts” and using his subcontractor contract “to his advantage when it suits him and disavow it when it does not.” McDermott Partner Rachel Cowen represented the subcontractor.

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Will the Biden Administration Upend Workplace Law?

Joe Biden’s ascendance to the presidency not only spells doom for many of the Trump administration’s business-friendly employment policies; it also may place established tenets of federal labor law on the chopping block. Biden may bring with him to the White House an ambitious pro-labor platform aimed at giving workers and unions a leg up after four years in which the Trump administration moved the legal needle sharply in employers’ direction.

A recent article in Law360, featuring McDermott partner Ron Holland, outlines four areas that labor and employment lawyers should watch after the Biden transition.

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DOL Provides Guidance on Tracking Telecommuters’ Work Hours

Employers must use reasonable diligence in tracking nonexempt telecommuters’ work hours and may do this by providing a reporting procedure for unscheduled time, the US Department of Labor (DOL) stated in August 24 guidance. The workers then must be compensated for all reported work hours, even those not requested by the employer.

In a recent article by the Society of Human Resource Management, McDermott partner Ellen Bronchetti explained that employers should have policies that prohibit working off the clock. “If an employer has an expectation that an employee was working from 8:00 am to 4:00 pm and the employee works later at night responding to emails, that could lead to wage and hour liability.”

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Employment, Benefits and Compensation Forum: Control Your Own Headlines

In today’s high-stakes environment, in-house counsel and HR professionals are often on the frontlines, responding to headlines that threaten business and reputational objectives.

Join McDermott Will & Emery’s Employment and Employee Benefits practice groups at a half-day forum in our Chicago office on Oct. 10. This forward-looking program is designed to drive conversation around emerging trends to help employers craft their own narrative, instead of being held captive by it.

See full event details and register here.




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3 Aspects of Executive Agreements that Need an Upgrade

Executives are no longer reluctant to lawyer up. News reports on executive/employer contretemps at Papa John’s, Barnes & Noble, Uber and other companies have drawn press attention in the past year; countless other executive/employer disputes have flown below radar.

Underlying these controversies is the executive’s employment agreement, typically the most high-stakes and closely negotiated employment agreements to which companies will contract. Yet, these agreements often contain less clarity and less certainty than either executives or their employers need. Indeed, there appear to be three areas where these contracts could and should be upgraded. Let’s look at each.

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Originally published by Law360, February 2019.




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