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Jeffrey W. BrecherBlog Posts

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DOL Adopts Portions of Tipped Regulations Final Rule, Proposes Further Delay of Other Portions

While deciding to make effective some portions of the Tipped Regulations Final Rule published in the final weeks of the former administration, the U.S. Department of Labor (DOL) has proposed further delay and consideration of the most controversial provisions of the Rule, including the elimination of the “80/20 Rule” that purports to limit the percentage...… Continue Reading
March 25, 2021

Biden DOL Proposes Withdrawal of Former Administration’s Joint Employer and Independent Contractor Final Rules

On March 11, 2021, the U.S. Department of Labor (DOL) issued Notices of Proposed Rulemaking (NPRMs) to withdraw the Joint Employer and Independent Contractor Final Rules published during the previous administration. The Joint Employer Final Rule The Joint Employer Final Rule went into effect in January 2020 and addressed the standard for determining whether an...… Continue Reading
March 12, 2021

Full Fifth Circuit to Hear FLSA “Day Rate” Case, Vacating Panel Opinion

In April 2020, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit held that paying an employee a set amount for each day he works (i.e. on a “day rate” basis) does not satisfy the “salary basis” component required to qualify as overtime-exempt under the Fair Labor Standards Act (FLSA), regardless...… Continue Reading
March 11, 2021

As Expected, DOL Delays Independent Contractor Final Rule

On March 2, 2021, the U.S. Department of Labor (DOL) formally delayed the effective date of the Independent Contractor Final Rule, from March 8, 2021 to May 7, 2021. The Final Rule, published during the last two weeks of the prior administration, provides that “an individual is an independent contractor, as distinguished from an ‘employee’...… Continue Reading
March 3, 2021

DOL Delays Tip Regulations Final Rule, Independent Contractor Final Rule Likely Next

As expected, the U.S. Department of Labor (DOL) has formally delayed the effective date of the Tip Regulations Final Rule, from March 1, 2021 to April 30, 2021. The Tip Regulations Final Rule, issued in late December 2020, implemented a 2018 amendment to the FLSA that permits tipped employees, such as restaurant servers, to pool...… Continue Reading
February 25, 2021

The Proposed Federal Covid-19 Relief Bill Includes a $15 Minimum Wage Hike and Elimination of the Tip Credit. Will Those Provisions Survive?

Making good on President Biden’s campaign promise, the House of Representatives has included in its $1.9 trillion Covid-19 relief bill, known as the “American Rescue Plan Act of 2021,” revisions to the Fair Labor Standards Act (FLSA) that would increase the federal minimum wage to $15 per hour by 2025. The current federal minimum wage...… Continue Reading
February 22, 2021

DOL Seeks to Delay Tip Regulations, Independent Contractor Final Rules

One day after President Biden entered office, the White House issued a memorandum directing all agencies to review, and consider delaying, any rules that had been issued by the former administration but that were not yet effective. Following that directive, the U.S. Department of Labor (DOL) has proposed delaying the effective dates of the recently-issued...… Continue Reading
February 11, 2021

Employers Will No Longer Get PAID

On January 29, 2020, the U.S. Department of Labor (DOL) announced that it was abandoning the Payroll Audit Independent Determination (PAID) program, effective immediately. PAID was introduced in 2018 as a self-audit program, designed to allow an employer who uncovered potential Fair Labor Standards Act (FLSA) wage violations to voluntarily report those findings to the...… Continue Reading
February 1, 2021

States Challenge DOL’s Tip Regulations Final Rule, DOL Withdraws Opinion Letters

On January 19, 2021, eight states (Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, and Pennsylvania), along with the District of Columbia, filed a lawsuit seeking to enjoin the Tip Regulations Final Rule published by the U.S. Department of Labor (DOL) in late December 2020. The Final Rule, which currently is scheduled to become...… Continue Reading
January 27, 2021

2020 Wage & Hour Developments: A Year in Review

The laws governing wages and hours of work affect nearly everyone. How employees are paid, whether as hourly non-exempt, salaried-exempt, tipped, or commissioned sales workers, and how much they are paid, are questions of deep interest to employees and employers alike. And because the laws regulating wages generally apply only to employees, as opposed to...… Continue Reading
January 26, 2021

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