Minimum Wage and Overtime Changes

Several states introduced new pieces of legislation (which went into effect in December 2018) that employers should be aware of.

These include changes to the minimum wage in states such as New York and Michigan, new legislation regarding tipped wage workers in Washington, D.C., and interpretations of overtime regulations under the Fair Labor Standards Act (FLSA).

According to J.D. Supra:

The U.S. Department of Labor published an opinion letter in which it confirmed an employer was compliant with the Fair Labor Standards Act’s (FLSA) minimum wage requirements when it paid employees an average hourly rate that may vary from workweek to workweek. Weekly pay was calculated by multiplying employees’ client time by their hourly pay rate, then dividing the product by total hours worked, which included client time and travel time between client locations. The final amount was guaranteed to meet federal and state minimum wage rate requirements. The Department cautioned, however, that to comply with the FLSA’s overtime requirements, any overtime due must be based on an employee’s regular rate, not on an arbitrarily selected figure.

For more details on these important developments, please click here.

The information included in this blog post originally appeared in an article from J.D. Supra on January 2, 2019, written by Sebastian Chilco, Libby Henninger, and Corinn Jackson of Littler Mendelson P.C..


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