The Unringing of the Bells, Part Two: The DOL

Over the last month, we have seen a number of significant restorations of status quo antes. These have come in the form of reverting to earlier precedent, regulations, or guidance. Without further ado, we present some of the more notable developments: More ›

DOL Says Hello to Primary Beneficiary Intern Test, Goodbye to 6-Factor Test

Earlier this month, the U.S. Department of Labor announced it will now use the primary beneficiary test” to determine whether an intern must be paid.  Its announcement comes in the wake of the 9th Circuit’s adoption of the test, joining the 2nd, 6th, and 11th Circuits.  With the announcement, the DOL also updated Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act. These moves displace a 6-part test the DOL adopted in 2010 that required all factors weigh in favor of the employer. More ›

Appealed! Overtime Rule Saga Continues

On October 30, 2017, the Department of Labor (DOL) indicated that it intends to appeal to the Fifth Circuit a federal district court ruling from 2016 that invalidated Obama-era overtime changes. More ›

Obama Administration’s Overtime Rule Invalidated

A federal judge from Texas struck down the Obama administration’s overtime rule, finding the salary-level test set forth by the Department of Labor did not account for an analysis of an employee’s job duties for purposes of determining whether an employee is exempt from overtime pay.  A copy of the court's opinion is available here. More ›

Department of Labor Seeks Delay of Fiduciary Rule Implementation Until July 2019

The U.S. Department of Labor has moved to delay implementation of three exemptions of the “fiduciary rule” until July 2019. The regulation, which partially went into effect earlier this year, requires financial advisers to put retirees’ interests ahead of their own when providing investment advice regarding the customers’ retirement accounts. The provisions impacted by the delay include what is known as the “best interest contract” exemption, a requirement mandating advisers and financial institutions sign contracts agreeing to put their clients’ interests ahead of their own before servicing such clients. The best interest contract exemption would also allow investors to bring class-action lawsuits against advisers and financial firms.  The Department of Labor has sought to postpone implementation of the principal transactions exemption and amendments to the prohibited transaction exemption 84-24 as well. The exemptions were originally set to take effect January 1, 2018. More ›

Uncle Sam Wants You . . . To Tell Him a Little About Overtime

A Department of Labor (DOL) 2016 Final Rule pushed federal regulations under the Fair Labor Standards Act (FLSA) that would have more than doubled the “threshold” below which nearly every salaried employee would be entitled to overtime. In November 2016, a federal district court prevented the new threshold from coming into effect, and the subsequent election of President Trump called into doubt whether revised rules would ever be implemented. More ›

Overtime Expansion Over? Texas District Court issues Nationwide Injunction of Expanded Federal Overtime Rules

What Happened?

A federal judge has blocked the U.S. Department of Labor (DOL) from implementing new regulations under the Fair Labor Standards Act (FLSA) that expand overtime eligibility to 4.2 million salaried workers. The preliminary injunction issued yesterday found that the expanded overtime eligibility rules were contrary to the FLSA and Congressional intent.

The rules were supposed to become effective December 1, 2016. They grant overtime eligibility to millions of salaried white-collar employees whose salaries were not above a threshold of $921 per week ($47,892 annually), but whose duties otherwise would have made them exempt from overtime. With the injunction, the new regulations are on hold until the court issues a final decision. More ›

Peering into Hinshaw’s Crystal Ball: How the Trump Administration May Affect Labor and Employment Landscape

With the election of Donald Trump and transition to a Republican administration looming, employers are scrambling to predict what impact Trump will have on labor and employment policy and enforcement initiatives. What employers can expect in the first 12 months of a Trump Administration is unclear, but there likely will be change in the following areas: More ›

Join Us October 20, 2016 for Hinshaw's 21st Annual Labor & Employment Seminar

It's that time of year again! School's back in session, the leaves are starting to change, and Hinshaw is putting on its annual Labor & Employment Seminar! Thursday, October 20^th is the big day in Hoffman Estates, Illinois. Have you been wondering... More ›

DOL Updates Federal Contractor Regulations Prohibiting Sex Discrimination for First Time Since 1970

On Tuesday, the U.S. Department of Labor announced a final rule to expand sex discrimination guidelines for federal contractors and subcontractors. The final rule updates—for the first time in over 40 years—the Office of Federal Contract Compliance Programs' sex discrimination regulations to align them with current interpretations of Title VII of the Civil Rights Act of 1964 and the realities of today's diverse workforce. More ›