SimplyHR | Employment & Labor Blog 

In a year marked by federal responses to the COVID-19 pandemic, federal agencies managed to finalize some non-pandemic legal developments in 2020: the Department of Labor’s (DOL) new overtime rule and joint employer test both went into effect, and the National Labor Relations Board (NLRB) overturned a handful of Obama-era precedents. With Joe Biden’s election as president in November 2020, the coming four years will likely bring some reversal of the impact of the Trump administration, particularly on the DOL and NLRB. The 2019-2020 Supreme Court term was relatively busy for employment, including a major development for Title VII. Of course, much of the energy and resources of the federal agencies overseeing employment laws were spent on providing guidance to employers related to COVID-19 issues. Below is a summary of major federal employment law headlines from last year and a look at what employers can expect in 2021.

As the COVID-19 pandemic continues, employers find themselves facing new challenges. Recognizing that the “new norm” has led to workplace circumstances not previously considered, the U.S. Department of Labor issued new guidance to address several wage and hour and leave-related scenarios employers may face. Highlights from the new guidance include:

The theme for last year’s federal developments was reversal of Obama-era rules. The Department of Labor and National Labor Relations Board were especially active in this respect.

After a relatively quiet Supreme Court term for employment law in 2018-19, the stage is set for the court to rule in 2020 on highly anticipated topics. Below is a summary of major federal employment law headlines from last year and a look at what employers can expect in 2020.

With the new year fast approaching, millions around the world will be gathering to count down the end of 2019 and usher in a new decade. As the ball drops in Times Square, employers should be asking themselves, “Are my exempt employees still subject to the Fair Labor Standards Act (FLSA) exemption?”

The Department of Labor (DOL) announced its Final Rule updating the exemption threshold under the Fair Labor Standards Act (FLSA) on Sept. 24, 2019. The Final Rule raises the standard salary level threshold for “white collar” employees from the $23,660 minimum established in 2004 to $35,568, or $684 per week. Employees earning less than $35,568 a year must be paid overtime for hours worked in excess of 40 each week. Above this salary level, eligibility for overtime varies based on job duties.

The Department of Labor (DOL) issued its long-awaited proposed overtime rule and new exemption threshold under the Fair Labor Standards Act (FLSA) on March 7, 2019. The regulation, which replaces the controversial rule issued under the Obama administration in 2016, raises the salary threshold from the $23,660 minimum established in 2004 to $35,308, or $679 per week. As such, employees earning under $35,308 a year must be paid overtime for hours worked in excess of 40 each week. Above this salary level, eligibility for overtime varies based on job duties.

2018 was a relatively quiet year in federal employment law developments, but the stage is set for a much more active 2019. Below is a summary of major federal employment law headlines and a look at what employers can expect in 2019.

For Missouri and Illinois employers, a review of 2018 state updates and a look forward at 2019 can be found here.

On Nov. 8, 2018, the Department of Labor (DOL) issued an Opinion Letter reviving its 2009 guidance that eliminated the 80/20 rule for tipped workers. The rule prohibited employers and businesses from paying tipped workers below the minimum wage by way of a tip credit for non-tipped work when such work comprised more than 20 percent of their day. Under the Obama administration, the 2009 Opinion Letter was withdrawn, which restored the 80/20 rule and sparked a flurry of lawsuits alleging that tipped workers spend more than 20 percent of their time performing non-tipped work for which they did not receive the minimum wage. After finding the rule was confusing and nearly unworkable, the DOL has done away with it once again.

On April 2, 2018, the U.S. Supreme Court, in a close 5-4 decision, held that car dealership service advisors are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). In reaching this conclusion, the court rejected the long-held belief that FLSA exemptions should be applied narrowly.

The federal employment law landscape saw some interesting developments in 2017, as well as some anticipated changes that were ultimately halted or delayed. Below is a summary of major federal employment law headlines and a look at what employers can expect in 2018.

For Missouri and Illinois employers specifically, a review of 2017 updates and a look forward at 2018 can be found here.