Department of Labor Updates
DOL Updates: New Guidance, Proposed Rules and Compliance Tools
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Discussion
The U.S. Department of Labor (DOL) has begun the year with several notable regulatory and interpretive actions impacting employers, including new opinion letters under the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA), progress on a proposed independent contractor rule, and the release of updated compliance‑assistance tools. Key updates are summarized below.
FLSA Opinion Letters
On January 5, 2026, the DOL’s Wage and Hour Division (WHD) issued four new opinion letters interpreting key provisions of the FLSA. While not binding law and typically tied to specific fact patterns, these opinion letters reflect the agency’s interpretation and provide insight into potential enforcement strategies.
- Learned Professional Exemption (FLSA2026-1). The WHD considered whether a Licensed Clinical Social Worker, recently relieved of supervisory duties and reclassified from exempt to nonexempt, continued to meet the learned professional exemption under the FLSA. The WHD concluded that supervisory responsibilities are not a component of the applicable duties test, and instead, the focus remains on whether the employee performs “work requiring advanced knowledge,” such as clinical assessments, treatment planning, and documentation. The letter reiterates that employers may lawfully classify an employee as nonexempt even if the employee satisfies the exemption criteria.
- Nondiscretionary Bonuses and Regular Rate (FLSA2026-2). The second letter addressed whether incentive bonuses tied to an employer’s detailed “Safety, Job Duties, and Performance” plan qualify as discretionary. The WHD concluded they do not, reasoning that because the plan establishes defined, objective criteria that automatically triggers the bonus once met, the employer does not exercise sole discretion over the decision to award the payments or their amount. As a result, the WHD said these bonuses must be included in employees’ regular rate of pay for overtime purposes.
- Pre-Shift “Roll Call” Time Under CBA (FLSA2026-3). The WHD also clarified that a union‑negotiated, mandatory 15‑minute roll‑call period for emergency dispatch employees constituted compensable work time and must be included when calculating overtime. The union sought guidance on whether these 15 minutes could be excluded from overtime calculations to align employees’ total hours with the 2,080‑hour annual standard. The WHD rejected that approach, reaffirming that actual hours worked, not annualized schedules, control FLSA overtime applicability. Notwithstanding, the WHD noted that employers may negotiate collective bargaining agreements be structured to take advantage of partial overtime exemptions under FLSA sections 7(b)(1) or 7(b)(2), which allow overtime premiums only after 12 hours in a day or 56 hours in a week. The letter provides examples illustrating how such schedules may be designed to reduce overtime exposure.
- Minimum Wage Rate for 7(i) Exemption (FLSA2026-4). The final opinion letter resolves longstanding uncertainty regarding which minimum wage applies when determining whether a commissioned retail or service employee satisfies the minimum pay standard under the 7(i) exemption. The WHD confirmed that the federal minimum wage (currently $7.25/hour) controls, even in states with higher minimum wage rates. Employers must therefore ensure the employee’s regular rate exceeds 1.5 times the federal minimum wage (e.g., $10.875/hour) to satisfy the exemption’s first prong. The letter also clarifies that, for purposes of meeting the requirement that more than 50% of an employee’s compensation consists of commissions, tips generally do not qualify as “compensation.” However, where an employer takes a tip credit toward minimum wage obligations, that credited amount does count as compensation for 7(i) analysis.
FMLA Opinion Letters
In addition to the Opinion Letters above addressing the FLSA, the DOL issued two letters interpreting pieces of the FMLA, specifically providing guidance on how school closures affect the calculation of FMLA leave for school‑based employees and whether employees may use FMLA leave for travel time to and from medical appointments.
- School Closures and the FMLA (FMLA2026-1): The DOL clarified that the impact of a school closure of less than a full week depends primarily on (1) whether the employee is taking full‑week or intermittent leave, and (2) whether the employee would have been scheduled to work during the closure. For school employees taking intermittent FMLA leave, employers may deduct only the actual workdays missed (not the entire week) when a partial closure occurs. Conversely, if the school is closed on days for which an employee had already planned to take FMLA leave, those closure days cannot be counted against the employee’s FMLA entitlement because the employee would not have been expected to work. If an employee is on continuous, full‑week FMLA leave and the school closes for a portion of that week, the entire week may still be counted against the employee’s FMLA allotment. The DOL also emphasized that these principles apply regardless of whether the closure was planned or unplanned, and whether the missed instructional days are later made up.
- Travel Time for Medical Appointments (FMLA2026-2): The second opinion letter confirms that employees may use FMLA leave for reasonable travel time associated with attending medical appointments for a serious health condition, whether for themselves or a qualified family member. The DOL noted that travel time is a natural and necessary part of obtaining treatment, and therefore falls within the scope of leave protected by the statute. Travel time, however, must be directly connected to the medical appointment; time spent on unrelated personal errands during the trip is not protected. The DOL also clarified that medical certifications do not need to include specific information about travel time, meaning health care providers are not required to document or separately certify the need for travel. Employers should rely on existing medical documentation to support leave for both the appointment and the associated travel.
DOL Advances New Independent Contractor Rule
On January 8, 2026, the DOL submitted a new proposed independent contractor rule to the White House, as part of the early-stage rulemaking process. Although details of the rule are not yet public, the scope of the proposed rule appears broader than initially expected, now referencing the FMLA and the Migrant and Seasonal Agricultural Worker Protection Act in addition to the FLSA.
For now, the agency has paused enforcement of the 2024 Biden‑era independent contractor rule and is instructing investigators to rely on earlier, more business‑friendly guidance from 2008 and 2019. While it remains unclear whether the DOL will reinstate the 2021 Trump‑era rule or introduce a new standard, employers should expect potential changes and continue monitoring the rulemaking as it progresses.
DOL Releases New Compliance Assistance Tools
On January 26, 2026, the WHD released new compliance‑assistance resources aimed at helping employers understand and meet their obligations under federal labor laws. The updates include a redesigned compliance‑assistance webpage, new FMLA video tutorials, and updated industry‑specific toolkits. The WHD emphasized that these tools are designed to support proactive compliance, reduce enforcement risk, and make it easier for employers to access cleat, user-friendly explanations on federal requirements.
Action Items
- Review employee exemptions, bonus plans, and overtime practices for compliance.
- Review FMLA leave administration practices.
- Have appropriate personnel trained on applicable wage and hour and leave administration requirements.
- Review updated compliance assistance tools for additional guidance.
- Monitor additional guidance and instruction from the DOL on worker classifications.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase