In some industries, it has long been the norm for young workers to work as unpaid interns while they gain experience and a foothold in the business. These types of unpaid internships, however, are almost always unlawful if the business receives anything of productive value from the intern. Nowhere are these types of internships more… Continue Reading
Category Archives: Department of Labor
Subscribe to Department of Labor RSS FeedEmployer Cannot Reduce FLSA Limitations Period in Employment Contract
Posted in Department of Labor, Wage and Hour PoliciesA federal judge in Michigan ruled this week that a business unit of Quicken Loans could not rely on an employment contract as a defense to a putative collective action under the Fair Labor Standards Act (FLSA). Chasteen v. Rock Financial et al., 2:07-cv-10558 (E.D. Mich.). In the contract, the employee had agreed to shorten… Continue Reading
Supreme Court Will Decide Whether Pharmaceutical Reps Should Be Paid Overtime
Posted in Department of Labor, Fair Labor Standards Act (FLSA), Outside Sales Exemption, OvertimeThe Supreme Court has granted a petition for certiorari in a case heard by the Ninth Circuit concerning whether pharmaceutical drug sales representative are exempt from overtime under the Fair Labor Standards Act. The Ninth Circuit held that the FLSA’s outside sales exemption barred overtime claims filed by a proposed class of sales representatives for GlaxoSmithKline… Continue Reading
Recent Congressional Hearings Spotlight More Aggressive DOL
Posted in Department of Labor, Fair Labor Standards Act (FLSA), Wage and Hour PoliciesA few weeks ago, current and past administrators of the Department of Labor (DOL) testified before Congress regarding the agency’s ongoing enforcement efforts. Ex-administrator Tammy McCutchen (2002-2004) had some harsh words for the policy direction taken by the current administration: “The Wage and Hour Division’s approach to enforcement has become increasingly punitive over the last three years… Continue Reading
New IRS Amnesty Program Leaves Employers Open to Overtime Suits
Posted in Department of Labor, Independent ContractorsThe IRS has announced a new amnesty program aimed at employers who have misclassified employees as independent contractors. The program, called Voluntary Classification Settlement Program, would allow employers to “come clean” and re-classify contractors as employees, and only pay approximately 10 percent of the back taxes. The IRS also promises no audits and no penalties… Continue Reading
New Department of Labor App Helps Employees Gather Evidence
Posted in Department of Laborby Michael Schmidt The workplace continues to get smarter and more versed on its rights. The million dollar question is whether that leads to a greater number of lawsuits. It seems that employees have potential counsel everywhere these days – an attorney on every block and around the Thanksgiving table. Social media and the Internet… Continue Reading