On January 9, 2024, the U.S. Department of Labor (“DOL”) issued a long-awaited Final Rule that addresses when a worker is properly classified as an independent contractor under the Fair Labor Standards Act (the “FLSA”). Under its new Rule, independent contractors are characterized as those workers who, as a matter of economic reality, are not
Wage & Hour
Trade Group Sues DOL to Invalidate New Davis-Bacon Regulations
We wrote in August about major updates to the Davis-Bacon regulations issued by the Department of Labor. The Final Rule updating those regulations became effective on October 23, 2023. In the time since, contractors have been working to ensure compliance with the new requirements, including, among other things, seeking approval from the DOL before taking…
Here We Go Again – DOL Proposes Big Increases to the Minimum Salary Requirements for the FLSA’s White-Collar Exemptions
On August 30, 2023, the U.S. Department of Labor issued proposed regulations that would sharply increase the minimum salary requirements for the Fair Labor Standards Act’s white-collar overtime exemptions. These proposed regulations, if they take effect, would impact millions of currently exempt employees and create significant compliance issues for many employers.
Background and History
The…
DOL Issues Major Updates to Davis-Bacon Regulations
On August 8, 2023, the Department of Labor issued a Final Rule that makes significant changes to contractor and subcontractor obligations on federal and federally-assisted construction projects. Contractors who perform work under projects covered by the Davis-Bacon Act should become familiar with their new obligations.
We have summarized below some of the key provisions of…
DOL Proposes a Roll Back of Trump-Era FLSA Independent Contractor Rule
Last week, the U.S. Department of Labor introduced a proposed rule to update its test for determining whether a worker is an employee under the Fair Labor Standards Act (the “FLSA”). If implemented, the proposed rule would likely make it more difficult for employers to classify workers as independent contractors.
The proposed new test would…
Pennsylvania Supreme Court Widens the Gap Between PA and Federal Overtime Laws, Creating More Compliance Challenges for PA Employers
Last week, the Pennsylvania Supreme Court issued a decision that has broad implications for Pennsylvania employers. The Court’s decision in In Re: Amazon.com, Inc., which can be read here, established two important differences between Pennsylvania’s overtime law and the federal Fair Labor Standards Act (FLSA). These differences are likely to create significant potential…
Relief for Employers: New Pennsylvania Overtime Exemption Minimum Salary Requirements Repealed in State Budget Deal
We do not often have good news to report for Pennsylvania employers in this blog. The complexities associated with the employment laws, and the costs of non-compliance, continue to increase for employers seemingly with each passing year. Today is one of those rare days when we bring good news.
Late last week, the Republican-controlled Pennsylvania…
Pay For College Play Not Coming to a School Near You
This post was authored by Frank Lavery, II, a Law Clerk with McNees. Frank is currently a student at the University of Notre Dame Law School and expects to earn his J.D. in May of 2022.
On June 21, 2021, the United States Supreme Court issued its opinion on the hotly contested issue of compensation…
DOL Issues New Regulations to Sharpen FLSA Employee/Independent Contractor Classifications: What Does it Mean and Will it Matter?
The U.S. Department of Labor (“DOL”) announced the issuance of a Final Rule to clarify the distinction between an employee and an independent contractor under the Fair Labor Standards Act (“FLSA”).
A worker’s classification under the FLSA determines their entitlement to minimum wage and overtime pay, and determines whether an employer is obligated to maintain…
New Pennsylvania Overtime Exemption Minimum Salary Requirements Set to Exceed FLSA’s Requirements in 2021
In what seems like an eternity ago, in June 2018, the Pennsylvania Department of Labor and Industry (DLI) proposed new regulations under the Pennsylvania Minimum Wage Act (PMWA) that would increase significantly the minimum salary requirement for the white-collar overtime exemptions under this law.
After many twists and turns, these regulations were published in their…