KMK Law Management Rights Blog

As anticipated, the Department of Labor’s (DOL) final overtime rules were issued on May 18, 2016. Effective December 1, 2016, these new regulations will impact all companies with salaried employees earning less than $47,476 annually. KMK will be offering training sessions to assist our clients in developing effective strategies to implement the new overtime rules. 

For employers, compliance with wage-hour laws, including the Fair Labor Standards Act (“FLSA”) is more important than ever.  A top lawyer at the Department of Labor (“DOL”) stated earlier this month during a conference that the DOL has a new emphasis on investigations of potential FLSA violations. 

Now that summer is here, many companies have brought in the annual crop of summer interns.  It is likely that at least some of these interns are unpaid, working for the privilege of gaining experience or a foot in the door that might lead to a paying position.  A Federal District Court in Manhattan ruled this week that Fox Searchlight Pictures violated federal and New York minimum wage laws by not paying production interns. What does this mean for employers?  

On March 5, 2013, Sen. Tom Harkin, D-Iowa, and Rep. George Miller, D-Calif., introduced legislation that would raise the federal minimum wage.  If enacted, the recently-proposed Fair Minimum Wage Act would amend the Fair Labor Standards Act to raise the federal minimum wage to $10.10 per hour over three years.  The increase would be accomplished by establishing a minimum wage of $8.20 per hour on the first day of the third month after enactment - an increase of 95 cents over the current federal minimum wage - followed by a minimum wage of $9.15 per hour one year after the initial bump and then $10.10 per hour a year later.

In the last week, both in practice and in my daily review of labor and employment law websites and blogs, two issues have come up so frequently, I feel compelled to blog about them myself.

An interesting article from Portfolio.com notes that:

“Lawsuits over overtime, long a bane of big business, are moving their way down the ladder. More such suits are being filed against small and mid-sized businesses, too.” 

Amazon has been hit with a FLSA lawsuit for unpaid overtime based on its practice of rounding employees’ clock-in and clock-out times to the nearest quarter hour.  As is typical, the newspaper account of the lawsuit quotes extensively from the complaint and leaves the impression that Amazon must have done something wrong.  In reality, there is nothing per se wrong with the practice or rounding hours.