Millions for Failure to Pay Overtime
As we wait for the final overtime regulations to be released, we are reminded that misclassification of nonexempt positions and failure to pay overtime are very costly violations of the Fair Labor Standards Act (FLSA).
This week, we reported that Halliburton, an oil and gas service provider, reached an agreement with the U.S. Department of Labor (DOL) to pay $18,293,557 for overtime owed to 1,016 employees nationwide. The DOL said its investigators found that Halliburton had incorrectly categorized employees in 28 positions as exempt from overtime. Moreover, the company failed to keep accurate records of the time worked by these employees.
In other news, it is reported that a class action lawsuit has been filed in Florida against Kmart® by its assistant store managers who allege that they are improperly classified as exempt from overtime even though they spend a significant amount of their worktime performing cashier duties. This lawsuit is just getting started, so it remains to be seen if Kmart will be paying out large amounts of back-pay to these employees.
When the new overtime regulations become final, the increased salary threshold will have a big impact on retailers like Kmart. In addition, if the DOL adopts a 50 percent rule (at least 50 percent of an exempt employee’s time must spent on the exempt, primary duties of the job), companies with first line supervisors who also perform nonexempt work may have to rethink their operations.
Recent/Upcoming Compliance Dates
October 1, 2015: Companies that experience a data breach affecting a Connecticut resident must offer the resident free identity theft protection services for at least 1 year. (Conn. Pub. Act No. 15-142).
October 1, 2015: New York City private-sector employers with 15 or more employees will have to offer at least 40 hours of annual paid sick leave to each employee, and private-sector employers with fewer than 15 employees will be required to offer at least 40 hours of unpaid sick leave to each employee per year.
October 15, 2015: St. Louis, Missouri’s, minimum wage increased to $8.25. It will continue to increase in these increments: $9.00 on 1/1/16; $10.00 on 1/1/17; and $11.00 on 1/1/18
As we wait for the final overtime regulations to be released, we are reminded that misclassification of nonexempt positions and failure to pay overtime are very costly violations of the Fair Labor Standards Act (FLSA).
This week, we reported that Halliburton, an oil and gas service provider, reached an agreement with the U.S. Department of Labor (DOL) to pay $18,293,557 for overtime owed to 1,016 employees nationwide. The DOL said its investigators found that Halliburton had incorrectly categorized employees in 28 positions as exempt from overtime. Moreover, the company failed to keep accurate records of the time worked by these employees.
In other news, it is reported that a class action lawsuit has been filed in Florida against Kmart® by its assistant store managers who allege that they are improperly classified as exempt from overtime even though they spend a significant amount of their worktime performing cashier duties. This lawsuit is just getting started, so it remains to be seen if Kmart will be paying out large amounts of back-pay to these employees.
When the new overtime regulations become final, the increased salary threshold will have a big impact on retailers like Kmart. In addition, if the DOL adopts a 50 percent rule (at least 50 percent of an exempt employee’s time must spent on the exempt, primary duties of the job), companies with first line supervisors who also perform nonexempt work may have to rethink their operations.
Recent/Upcoming Compliance Dates
October 1, 2015: Companies that experience a data breach affecting a Connecticut resident must offer the resident free identity theft protection services for at least 1 year. (Conn. Pub. Act No. 15-142).
October 1, 2015: New York City private-sector employers with 15 or more employees will have to offer at least 40 hours of annual paid sick leave to each employee, and private-sector employers with fewer than 15 employees will be required to offer at least 40 hours of unpaid sick leave to each employee per year.
October 15, 2015: St. Louis, Missouri’s, minimum wage increased to $8.25. It will continue to increase in these increments: $9.00 on 1/1/16; $10.00 on 1/1/17; and $11.00 on 1/1/18