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Justin R. BarnesBlog Posts

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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

2020 Wage & Hour Developments: A Year in Review

The laws governing wages and hours of work affect nearly everyone—and have a significant affect on class and collective actions. 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...… Continue Reading
January 22, 2021

DOL Issues Opinion Letters Regarding Pay Calculations for Teleworkers, In-Home Caregivers

On the last day of 2020, the Wage and Hour Division of the U.S. Department of Labor (DOL) ushered out the year with two new Opinion Letters. These may be the final two Opinion Letters of the Trump Administration and perhaps the last two for a while, depending on whether the Biden Administration continues the...… Continue Reading
January 4, 2021

Mandatory Gratuities Are Not “Tips” But May Qualify as Commissions Under the FLSA, Fourth Circuit Holds

Agreeing with the district court, the Court of Appeals for the Fourth Circuit has concluded that the mandatory service charges imposed by a restaurant on dining parties of six or more were not “tips” under the FLSA. However, the Court of Appeals reversed and remanded the trial court’s determination that the FLSA’s “commissioned salesperson” overtime...… Continue Reading
December 8, 2020

Trial Court Properly Applied Rule 68 Offer of Judgment and Reduced Attorney’s Fee Demand in FLSA Case, Eleventh Circuit Concludes

The plaintiff sought more than $12,000 in unpaid wages on his FLSA claims, rejected the defendant employer’s Rule 68 offer of judgment of $3,500 on those claims, and then was awarded only $97.20 plus an equal amount of liquidated damages. Under these circumstances, the Eleventh Circuit held that the trial court properly awarded the defendant...… Continue Reading
December 8, 2020

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