Guidance Issued on Unpaid Interns and FLSA Compliance
The Department of Labor (“DOL”) has introduced a new seven-factor test to help determine whether students and interns working at for-profit organizations qualify as employees eligible to receive minimum wage under the Fair Labor Standards Act (“FLSA”). An update from the previous version, the DOL’s new test is more beneficial to companies and examines the primary beneficiary of the employer-intern work relationship. The new guidance is also applicable to nonprofit organizations that offer interns stipends or other payments that are below the nation’s minimum wage ($7.25/hour).
Will the Overtime Rule Delay Impact College Salaries?
Despite the November 22 injunction delaying the Department of Labor’s final overtime rule , numerous college employees are still getting raises. Issued earlier this year, the final rule increases the salary threshold for overtime pay and offered a teaching exemption for non-faculty employees and postdoctoral fellows that primarily conduct research. The injunction shelved the rule’s December 1 effective date, but some higher institutions have already implemented their payroll changes and want to avoid damaging employee relations. Other colleges and universities still plan to postpone salary changes due to the injunction. More on the final overtime rule injunction and its impact on colleges can be accessed on Inside Higher Ed.
No Changes to the Department of Labor SCA Health & Welfare Rate
As far back as many can remember, there has been a yearly change in the Health & Welfare (“H&W”) rate. Last summer for instance, the H&W rate jumped $0.25 from $4.02 per hour to $4.27 per hour. However, as of July 28, 2016, the Department of Labor (“DOL”) Wage and Hour Division has made no changes to the Service Contract Act (“SCA”) (“H&W”) rate. The DOL has also issued a memorandum that retains the H&W rate at $4.27 for presumably next year. With the exception of citing the Bureau of Labor Statistics Employment Cost Index, the memorandum provides no other commentary as. Read More.
New DOL Salary Levels for FLSA-Exempt Employees
The Department of Labor (“DOL”) has finally issued final rules revising the salary levels that will be used to determine if certain employees are exempt from the overtime provisions of the Fair Labor Standards Act (“FLSA” or “the Act”). These rules will appear in the May 23, 2016, edition of the Federal Register and have an effective date of December 1, 2016. Under the FLSA, employees are entitled to be paid time and a half for all hours worked in excess of a normal work week, usually 40 hours. However, the Act exempts employees in executive, administrative, or professional positions. Read More.
Guidance for Higher Education Issued on Paying Overtime
On Wednesday, May 18, the Department of Labor (“DOL”) issued new regulations addressing the overtime provisions of the Fair Labor Standards Act (FLSA). The DOL has published guidance regarding the new regulations. Contact Kyle Frigon with questions or concerns.
FLSA Changes on Overtime Compensation Expected Summer 2016
By: Sara Crabtree , Manager Cherry Bekaert has been providing periodic updates on proposed changes to the Fair Labor Standards Act (“FLSA”) in regard to overtime compensation and how employers might be impacted by these changes. The Solicitor of Labor has now confirmed that the changes are expected to be finalized and announced during the late spring or summer of 2016, and will become effective 60 days after finalized. In March 2014, President Obama issued a memorandum to the Secretary of Labor, directing him to “propose revisions to modernize and streamline the existing overtime regulations” (under the FLSA). Although the President did. Read More.