Fair Labor Standards Act (FLSA)

Court Refuses to Approve Settlement of FLSA Collective Action

One of the unique features of a FLSA action is that any settlement must be approved by the court. At times, this can prove challenging for parties who must not only figure out how to satisfy one another, but how to make sure the court can also get on board with the settlement. In a […]

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Supreme Court Rules in Favor of Employer as to What is Compensable Time

In March, we reported that the United States Supreme Court had granted cert in a case involving the question of whether time spent by employees working for Amazon.com in security checks at the end of their shifts was compensable under the Fair Labor Standards Act (“FLSA”). On December 9, the Supreme Court issued its ruling […]

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Former Bank Executive Prevails in Suit Regarding Severance Payment

Last month, Judge Poston of Norfolk Circuit Court ruled that the former President of Shore Bank and Executive Vice President of Operations for Hampton Roads Bankshares, was entitled to $655,495.43 in severance pay, plus interest, despite the defendants’ arguments that they were prohibited from making this type of golden parachute payment as a recipient of […]

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Eleventh Amendment Bars FLSA Claim against Supervisors at Eastern State Hospital Where Actions Inextricably Tied to Official Duties

Earlier this week, the Fourth Circuit directed the district court to dismiss a FLSA claim brought by a nurse against two of her supervisors at Eastern State Hospital, finding that there was no basis for individual liability and sovereign immunity barred the claims. Martin v. Wood, et al., Case No. 13-2283 (4th Cir. Nov. 18, […]

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Tipped Employees Must Have Actual Notice of Use of Tip Credit

The tip credit permitted under the Fair Labor Standards Act (“FLSA”) has always presented challenges to restaurants and other employers seeking to apply it correctly. Last month, the First Circuit addressed the tip credit and the question of the type of notice which must be given to employees regarding its use in the case of […]

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Executive Order 13658 “Establishing a Minimum Wage for Contractors” Final Rule

On Tuesday, the U.S. Department of Labor issued the final rule that raises the minimum wage for workers on federal contracts to $10.10 an hour. The 338 page rule, which takes effect on January 1 2015, implements Executive Order 13658. The final rule provides for employers guidance as to which contracts and which employees are […]

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Decertification of Nationwide Collective Action under FLSA Does Not Prohibit Plaintiffs from Seeking Conditional Certification of Statewide Collective Action

Recently, a court in the Eastern District of Virginia was faced with the question of the effect of another district court’s decertification of a nationwide collective action on the efforts of employees here in Virginia to bring a statewide collective action.  See Allen v. Cogent Communications, Inc., No. 1:14cv459 (August 28, 2014).  The employer Cogent […]

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The Fluctuating Workweek—A Working Option?

The general rule under the Fair Labor Standards Act (“FLSA”) is that non-exempt employees have to be paid for overtime at a rate of one and a half times their regular rate of pay. However, there is another option available to employers—the fluctuating workweek method, sometimes called the halftime method. If the fluctuating workweek model […]

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Audit Associates Properly Classified as Exempt Under FLSA

The Second Circuit Court of Appeals affirmed the district court’s award of summary judgment to KPMG LLP in the case of Pippins v. KPMG LLP, No. 13-889 (2d Cir. July 22, 2014), agreeing that because the plaintiffs were employed as accountants in a field of advanced science and learning, deployed knowledge customarily acquired by a […]

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Summary Judgment Affirmed for Employer Using Monday-Sunday Workweek to Calculate Overtime

Last month, the Fifth Circuit Court of Appeals faced the question of whether the Fair Labor Standards Act (“FLSA”), an employer has to use a certain workweek to maximize overtime for employees. The Fifth Circuit ruled that there is no such obligation on an employer. Johnson v. Heckmann Water Resources, Inc. No. 13-40824 (July 14, […]

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