With an emphasis on practical strategies to improve productivity and performance, and limit potential liabilities, Bulletin to Management™ concisely analyzes new developments in employment and human resources management.
The Labor Department has updated regulations issued under the Fair Labor Standards Act and the Portal-to-Portal Act to conform them to subsequent legislation, according to a final rule published in the April 5 Federal Register (76 Fed. Reg. 18,832).
The final rule clarifies the tip credit provision but declines to adopt proposals on compensatory time and the fluctuating workweek. The revisions conform the regulations to FLSA amendments passed in 1974, 1977, 1996, 1997, 1998, 1999, 2000, and 2007, and Portal-to-Portal Act amendments passed in 1996. The proposed rule was published in July 2008 (73 Fed. Reg. 43,654; 59 BTM 241, 7/29/08).
The final rule updates the regulations regarding the tip credit to reflect increases in the minimum wage. The tip credit allows an employer to pay tipped employees a wage less than the minimum wage as long as the combination of that amount and the employee's tips equals the minimum wage. The final rule raises the maximum federal tip credit from $4.42 to $5.12 per hour.
The final rule also adopts the proposal's youth opportunity wage provision, which allows an employer to pay a subminimum wage to employees under age 20 during their first 90 calendar days of work.
The department decided not to adopt its proposed changes to regulations governing compensatory time off. In 1985, Congress added section 7(o) to the FLSA to permit states and local governments to grant employees compensatory time off instead of cash overtime compensation pursuant to an agreement with the employees or their representatives.
The department consistently has interpreted its regulations as requiring that an employee's request for compensatory time on a specific date must be granted unless doing so would unduly disrupt the agency's operations. Because two U.S. courts of appeal concluded otherwise, the department proposed adding a sentence to Section 553.25(c) stating that a state or local government need not allow the use of compensatory time on the day specifically requested but merely must permit the use of the time within a reasonable period after the employee makes the request.
However, since the proposed rule was published, two other appeals courts have upheld DOL's interpretation. Consequently, the department decided not to adopt the proposal, but to leave the current regulation unchanged.
The proposed regulation also provided that bona fide bonus or premium payments do not invalidate the fluctuating workweek method of compensation but that such payments must be included in the calculation of the regular rate unless they are otherwise excluded. The final rule restores the current rule requiring payment of the fixed salary amount as the straight time pay for whatever hours are worked in the workweek.
The text of the final rule can be accessed at http://op.bna.com/dlrcases.nsf/r?Open=gcii-8flltr.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)