Department of Labor to Begin Issuing Opinion Letters, Again

Secretary of Labor, Alexander Acosta, recently announced that the Department of Labor (DOL) will resume issuing opinion letters to provide employers with direction on compliance issues. Opinion letters are an official response from the DOL’s Wage and Hour Division that provide employers with detailed explanations regarding how certain laws apply to the specific facts.  Opinions are available to an employer for issues arising under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Davis-Bacon Act (DBA).  In a DOL press release, Secretary Acosta stated that issuing opinion letters will help employers and employees develop a better understanding of the laws and allow employers to “concentrate on doing what they do best:  growing their businesses and creating jobs.”
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Preparing for the Future of the Overtime Eligibility Rule

One of the most significant wage and hour actions of the Obama administration—promulgating a new rule on overtime eligibility—remains frozen in legal limbo as the Trump administration decides whether to repeal and replace it or propose an alternative solution. With such uncertainty, what should employers do to ensure they are in compliance when the Trump administration finally takes action?

First, employers need to understand why the new overtime rule is not in effect. A federal district judge in Texas stayed the rule’s implementation on November 22, 2016, just nine days before it would have become effective nationwide. The judge held that the Department of Labor exceeded its regulatory authority by establishing a salary threshold under which employees were automatically overtime eligible regardless of their job duties. The Department of Justice appealed that decision, and the Texas AFL-CIO filed a pending motion to intervene in the event the Trump administration decides not to challenge the judge’s decision in the appeal’s court. After obtaining two filing extensions, the DOJ has until May 1 to file a brief stating its position on the appeal.

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Federal Court Orders Stop to DOL’s Persuader Rule

On June 27, 2016, a Texas federal court granted a preliminary injunction preventing the Department of Labor (DOL) from moving forward on a nationwide basis with the July 1st enforcement of its Final Rule Interpretation of the “Advice” Exemption to Section 203(c) of the Labor Management Reporting and Disclosure Act (LMRDA) (also known as the DOL’s “Persuader Rule”). The court order was based on findings that plaintiffs in the case of National Federation of Independent Business, et al. v. Perez, 5:16-cv-00066-C, were likely to succeed on the merits of their claims in establishing that the DOL’s Persuader Rule is inconsistent with federal law and exceeds the DOL’s statutory authority.

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