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Certain employers are considering rewarding their employees with bonuses for their work during the COVID-19 pandemic.  However, in order to avoid triggering potential overtime payments under the Fair Labor Standards Act, employers need to ensure that the bonuses provided are discretionary bonuses, rather than non-discretionary bonuses.  Hogan Lovells employment lawyer Zach Siegel recently provided commentary…

The coronavirus which causes the disease COVID-19 presents a plethora of challenging labor and employment issues for employers in the United States. As the virus spreads and experts’ understanding of it continues to evolve, employers find themselves asking what precautionary measures they can or should take in response to the outbreak and its risks, how to respond when problems arise, and what are the legal considerations surrounding these measures. Below is a summary of certain potential strategies for dealing with the coronavirus and key legal risks that employers should consider in making judgments and formulating their coronavirus response efforts.…
Continue Reading Practical and legal labor and employment considerations for United States employers responding to the coronavirus

On September 24, 2019, the U.S. Department of Labor (DOL) announced a final rule that, effective January 1, 2020, will increase the salary threshold, by approximately 50%, that so-called “white collar” employees must be paid in order to be classified as “exempt” under the Fair Labor Standards Act (FLSA). Employees who do not meet the…

In a lengthy April 29, 2019 Opinion Letter, the U.S. Department of Labor (“DOL”) examined the relationship between a virtual marketplace company (“VMC”) and its service providers.  Applying a six-factor test derived from U.S. Supreme Court precedent, the DOL opined that the service providers were independent contractors under the Fair Labor Standards Act (“FLSA”)—not…

During a Congressional hearing on March 6th, Labor Secretary Alexander Acosta unveiled a six-month pilot program intended to encourage employers to self-audit and self-report accidental violations of the Fair Labor Standards Act (“FLSA”). Under the program, called Payroll Audit Independent Determination (PAID), the Wage and Hour Division (WHD) of the U.S. Department of Labor…

Earlier this month, US employers received important news just as the season of hiring summer interns is set to begin. The Department of Labor (“DOL”), through Fact Sheet #71, clarified its position regarding unpaid internships and officially adopted the “primary beneficiary test” for determining whether interns are considered employees under the Fair Labor Standards…