Ninth Circuit: An employee’s knowing violation of the FLSA is the employer’s willful violation, and you can’t necessarily collect from joint employers

By Matt Hesketh and Lindsay Hesketh A staffing company (Company A) got into hot water with the DOL for failing to pay overtime. Scalia v. Employer Solutions Staffing Group, LLC, No. 18-16493 (March 2, 2020). The employees at issue were placed by a second company (Company B). Company B instructed Company A’s payroll employee to pay […]

FLSA Applies to Employers in the Marijuana Industry

By Lindsay H. S. Hesketh A company providing services to the Colorado marijuana industry recently moved to dismiss an employee’s claims under the Fair Labor Standards Act.  The company argued that the court lacked jurisdiction over the claim because marijuana is an unlawful substance under the Controlled Substances Act (“CSA”).  The district court rejected the […]

A “Fair Reading” of the FLSA Exempts Paralegals From Overtime Pay

By Alyssa Levy Should highly compensated paralegals (likely more experienced paralegals) receive overtime pay? The new DOL Wage and Hour Administrator, Cheryl Stanton, says paralegals earning at least $100,000 annually and performing certain duties are “exempt” employees. The Administrator’s guidance letter zeroed in on the paralegals’ duties to justify their exempt status as a “fair […]

DOL Proposes Revamp of the “Regular Rate”

By James Korte The DOL continues to issue proposed rules to “modernize” the FLSA. The latest proposal, if finalized, would clarify and update the requirements for how employers calculate the “regular rate” of pay.  The “regular rate”  is the hourly rated used to calculate the overtime premium pay for non-exempt employees. The proposal: provides more […]

DOL says: Don’t Be Too Generous With Your Employees

By Beth Ann Lennon Thursday the Department of Labor (”DOL”) issued three new opinion letters, two of which warrant a quick note. One provided guidance regarding the Family Medical Leave Act (“FMLA”), and the other addressed the Fair Labor Standards Act (“FLSA”). Both had the same ultimate takeaway – employer generosity easily backfires. Providing more […]

Individual Liability for Owners

By Matt Hesketh The District Court of Arizona recently reminded us that the “expansive” definition of “employer” under the FLSA includes “any person acting directly or indirectly in the interest of an employer in relation to an employee.”  The Court held on summary judgment that a company owner was an employer because he had the […]