Guidance Released on FLSA Issues

The Department of Labor’s (DOL) Wage and Hour Division has released 17 Opinion Letters, which provide guidance on the Fair Labor Standards Act (FLSA). Outlined issues include White-Collar Exemptions, bonuses, joint-employment vs. volunteer status, as well as other topics.

According to JD Supra:

“…under the FLSA employers are required to pay overtime based on the regular rate of pay, which includes non-discretionary bonuses, and this letter indicates that this requirement is met by calculating the bonus using a percentage of straight-time and overtime compensation.”

Additionally, “several of the letters address which types of employees fall into one of the exemptions identified in Section 13(a)(1) based on the specific types of duties performed.  These letters generally start from the assumption that the employee is earning at least $455.00 per week – the former salary threshold level for exempt employees prior to the DOL’s 2016 rulemaking to increase that salary threshold level. ”

The letters suggest how the current administration will address these topics, therefore employers should review them for direction on FLSA-related issues.

For more details on the DOL’s guidance, please click here.

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