On May 20, 2020, the U.S. Department of Labor (DOL) published a final rule explaining that bonuses and other incentive payments—paid in addition to an employee’s weekly salary—are compatible with the fluctuating workweek (FWW) method of calculating overtime under the Fair Labor Standards Act (FLSA). The final rule went into effect on August 7, 2020.

On August 31, 2020, the DOL issued an opinion letter confirming that an employee’s work hours do not have to fluctuate above and below 40 hours per workweek for an employer to use the FWW method of calculating overtime pay. The opinion letter also cautioned that employers who use the FWW method generally may not “deduct from an employee’s salary for absences occasioned by the employee.” Both developments are discussed below, following the FWW refresher.
Continue Reading DOL issues new final rule and updated guidance for employers who use the fluctuating workweek method to calculate overtime

Earlier this year, the U.S. Department of Labor (DOL) issued a rule updating its interpretation of the “joint employer” doctrine under federal wage and hour law.  Yesterday, however, a New York federal judge struck down a significant portion of the rule.  Judge Gregory H. Woods’ 62-page decision delivers a significant blow to businesses that had relied on the business-friendly nature of the DOL’s new rule.

By way of background, the joint employment doctrine refers to a situation where a worker is deemed employed by more than one entity at the same time.  If multiple entities are considered joint employers, they can then generally each be held jointly and severally liable for workplace violations (e.g., discrimination, harassment, retaliation, unpaid wages).
Continue Reading New York federal judge nixes U.S. Department of Labor’s new “joint employer” rule

At a time when public employers across Pennsylvania are seeking to reduce or at least contain the skyrocketing costs of post-retirement health care benefits, the Commonwealth Court has virtually handcuffed municipalities from achieving any genuine relief for decades. The Commonwealth Court ruled in FOP, Flood City Lodge No. 86 v. City of Johnstown, No. 1873 C.D. 2010 (February 22, 2012), that the elimination of post-retirement health benefits for active police officers and firefighters by an Act 111 interest arbitration panel constitute an unlawful diminishment of contractually guaranteed benefits under the Home Rule Charter Law. This decision will likely have broad implications, as it signals how the Commonwealth Court will interpret a similar provision in the Pennsylvania Constitution that applies to all municipalities.
Continue Reading Pennsylvania Commonwealth Court Prohibits Act 111 Arbitration Panels from Reducing Post-Retirement Health Care Benefits for Active Employees