|
APPLIES TO
All Employers with LA, MS, and TX Employees
|
EFFECTIVE
August 21, 2019 |
QUESTIONS?
Contact HR On-Call
(888) 378-2456
|
In Faludi v. U.S. Shale Solutions, the Fifth Circuit Court of Appeal confirmed that an employee’s guaranteed day rate satisfied the Fair Labor Standard Act’s (FLSA) highly compensated employee (HCE) exemption, even though the employee was only paid twice monthly. The HCE threshold—which currently requires the employee to be paid more than $100,000 per year and at least $455 a week on a salary or fee basis—only requires that the employee “regularly receive[s]” the predetermined amount on a weekly or less frequent basis. There is no requirement that the cash amount be calculated on weekly or less basis.
In addition, the Fifth Circuit also stated that the amount the HCE is paid is not required to bear a “reasonable relationship” to the amount actually earned. Employers should take care when setting highly compensated exempt employee pay to ensure compliance with FLSA requirements.
Action Items
- Have highly compensated exempt employee pay reviewed for consistency with this ruling.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
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.
© 2019 ManagEase
New York: Statewide Salary History Ban Goes into Effect
/in HR AlertsAPPLIES TO
All Employers with NY Employees
EFFECTIVE
January 6, 2020
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(888) 378-2456
New York kicks off 2020 with a statewide salary history ban. Like other similar laws, the new regulation is intended to address wage differentials attributed to gender. Public and private employers alike are prohibited from asking applicants about prior salary history information (including compensation and benefits), or from seeking such information from other sources, verbally or in writing. Additionally, employers are prohibited from relying on salary history information as a factor in determining whether or not to interview a candidate, or what salary level to offer.
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Pennsylvania: Four Years Later, Paid Sick Leave Comes to Pittsburgh
/in HR AlertsAPPLIES TO
All Employers with Pittsburgh, PA Employees
EFFECTIVE
March 15, 2020
QUESTIONS?
Contact HR On-Call
(888) 378-2456
The Pittsburgh Paid Sick Days Act was initially passed in August 2015, but met legal challenges that delayed its implementation until now. The ordinance will finally go into effect on March 15, 2020. The Mayor’s Office on Equity has published official guidelines on the Ordinance, detailing requirements for employers. Below are key provisions of the ordinance.
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February Updates
/in HR AlertsAPPLIES TO
Varies
EFFECTIVE
Varies
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(888) 378-2456
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Get Ready for California Legislative Updates in 2020!
/in HR AlertsAPPLIES TO
All Employers with CA Employees
EFFECTIVE
January 1, 2020
QUESTIONS?
Contact HR On-Call
(888) 378-2456
The California Legislature tends to pass the hard-hitting employment law changes at the end of its session. Here are key updates employers should be aware of.
Action Items
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.
© 2019 ManagEase
California: IMPORTANT Changes for Independent Contractors
/in HR AlertsAPPLIES TO
All Employers with CA Independent Contractors
EFFECTIVE
January 1, 2020
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(888) 378-2456
AB 5 codifies the already existing Dyanamex “ABC test” for independent contractors. A significant difference between now and next year is that there will be exceptions for certain jobs and relationships that do not currently exist. Those exceptions will revert back to the Borello multi-factor test for determining independent contractor status. Another key difference from Dynamex is that AB 5 will apply for purposes of the Labor Code, Wage Orders, and Unemployment Insurance Code. Starting July 1, 2020, it will apply for purposes of workers’ compensation issues.
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U.S. DOL Opinion Letters: Delaying FMLA Leave, Clarifying FLSA Exceptions, and Applying HSAs to Garnishments
/in HR AlertsAPPLIES TO
All Employers
EFFECTIVE
September 10, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
The U.S. Department of Labor (DOL) recently released three opinion letters addressing the Fair Labor Standards Act, Family and Medical Leave Act, and the Consumer Credit Protection Act. These opinion letters are issued by the Wage and Hour Division and interpret how laws can be applied in specific situations posed by the letter’s requester, and serve as helpful guidance for employers.
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Third Circuit: Third Party Bonuses May Be Factored into the Regular Rate
/in HR AlertsAPPLIES TO
All Employers with DE, NJ, and PA Employees
EFFECTIVE
August 20, 2019
QUESTIONS?
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(888) 378-2456
In Department of Labor v. Bristol Excavating, Inc., the Third Circuit Court of Appeal stated that third-party bonuses may be required to be factored in the regular hourly rate for purposes of calculating overtime. The court said that the determinative factor is the agreement of “remuneration for employment” between the employer and employee, which must be reviewed on a case-by-case basis.
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Fifth Circuit: Clarity on Highly Compensated Employee Exception to FLSA Overtime Requirements
/in HR AlertsAPPLIES TO
All Employers with LA, MS, and TX Employees
EFFECTIVE
August 21, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
In Faludi v. U.S. Shale Solutions, the Fifth Circuit Court of Appeal confirmed that an employee’s guaranteed day rate satisfied the Fair Labor Standard Act’s (FLSA) highly compensated employee (HCE) exemption, even though the employee was only paid twice monthly. The HCE threshold—which currently requires the employee to be paid more than $100,000 per year and at least $455 a week on a salary or fee basis—only requires that the employee “regularly receive[s]” the predetermined amount on a weekly or less frequent basis. There is no requirement that the cash amount be calculated on weekly or less basis.
In addition, the Fifth Circuit also stated that the amount the HCE is paid is not required to bear a “reasonable relationship” to the amount actually earned. Employers should take care when setting highly compensated exempt employee pay to ensure compliance with FLSA requirements.
Action Items
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.
© 2019 ManagEase
California: New Bill Provides Employers Relief from California Consumer Privacy Act Requirements
/in HR AlertsAPPLIES TO
Employers with CA Employees; See Below
EFFECTIVE
January 1, 2020
QUESTIONS?
Contact HR On-Call
(888) 378-2456
Governor Newsom signed AB 25 into law, limiting the scope of the California Consumer Privacy Act (CCPA) as it applies to employers. The bill imposes the limitations from the date the CCPA goes into effect on January 1, 2020, although such limitations are not permanent and will automatically terminate the following year, barring any legislative action.
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California: FEHA Applies to More Employers
/in HR AlertsAPPLIES TO
Employers with 5 or more Employees
EFFECTIVE
October 1, 2019
QUESTIONS?
Contact HR On-Call
(888) 378-2456
The Department of Fair Employment and Housing (DFEH) changed the definition of “Employer” for purposes of the Fair Employment and Housing Act (FEHA). FEHA still applies to employers with five or more employees. However, the way in which those five employees is calculated has changed. Previously, employers must have had five employees “each working day in any twenty consecutive calendar weeks in the current calendar year or preceding calendar year.”
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