In the current battle to hire and retain good workers, employers have developed creative ways to balance employees’ increased compensation expectations against the costs of running a business. In addition, restaurants using the tip credit have the extra administrative difficulties of making sure their tipped employees are being paid enough in tips to meet the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements. A recent federal appeals court opinion reviewed one restaurant’s creative tactic to address the challenges by paying tipped employees their wages from monies collected as part of a mandatory service charge.

Since last year’s monumental Supreme Court decision curtailing the National Collegiate Athletic Association’s (NCAA) ability to limit student athlete compensation, the landscape continues to shift in unprecedented ways. In September 2021, the National Labor Relations Board (NLRB) announced its position that certain student athletes at private institutions should be considered employees for purposes of organizing and other National Labor Relations Act (NLRA) protections. Now, the U.S. 3rd Circuit Court of Appeals (which covers employers in Delaware, New Jersey, and Pennsylvania) will decide whether student athletes can be classified as employees under the Fair Labor Standards Act (FLSA), the federal law mandating minimum wage and overtime compensation.

In times of short staffing, it's important to remember exempt employees may lose their exempt status if they spend too much time performing nonexempt work. A recent ruling by the U.S. District Court for the District of Minnesota serves as a stark reminder that exempt employees may perform nonexempt work but only if their primary duty remains exempt.

Whether to pay any travel time for employees under the Fair Labor Standards Act (FLSA) can be complicated. Those who believe they should be compensated for the time often challenge nonpayment. A dispute over travel time with one individual can sometimes even blossom into a class action lawsuit involving a large number of current and former employees. An oilfield employer recently found itself battling exactly that sort of expanding lawsuit.

Whether to pay any travel time for employees under the Fair Labor Standards Act (FLSA) can be complicated. Those who believe they should be compensated for the time often challenge nonpayment. A dispute over travel time with one individual can sometimes even blossom into a class action lawsuit involving a large number of current and former employees. An oilfield employer recently found itself battling exactly that sort of expanding lawsuit.

In 2021, the Democratically controlled Virginia General Assembly passed the Virginia Overtime Wage Act, which expanded the state’s overtime requirements beyond those set forth in the federal Fair Labor Standards Act (FLSA). The change made an employee-friendly calculation for overtime pay, increased the statute of limitations for filing a wage claim, and added enhanced penalties for employers that failed to pay the proper overtime. Elections have consequences, however, and last year’s Republican victories in the state elections resulted in a newly constituted General Assembly that is more conservative in its outlook.

The Equal Pay Act of 1963 (EPA) is the oldest federal law prohibiting pay discrimination based on sex. The EPA is narrow in scope, applying only to employees working in the same workplace and preforming jobs that are the same or substantially similar. The law is highly prescriptive on the defenses an employer can use to defeat an EPA claim. Employers will avoid liability only if they prove the pay difference at issue is justified by a seniority system, merit system, incentive system, or any other factor other than sex.