Section 207(i) of the FLSA, commonly referred to as Section 7(i), provides an exemption from the FLSA's overtime pay requirements for certain employees of retail or service establishments paid primarily on a commission basis. For a half-century, the Section 7(i) regulations have contained two non-exhaustive lists of establishments (i) that the DOL deemed to have "no retail concept" that are categorically unable to claim the exemption and (ii) that may be recognized as retail.
Under the final rule, which was issued without notice and comment and takes effect immediately, the DOL removes the lists of business with "no retail concept" and that "may be recognized as retail" from the regulations. This means, that in order in doing so, business establishments that were excluded may now be considered as offering a retail product or service and qualify for the exemption.
While you're here, how about this:
Wage and Hour Division Issues Two Employer-Friendly Rules | BakerHostetler - JDSupra
Since 1961, Wage and Hour Division regulations have listed establishments that may or may not be recognized as “retail” within the meaning of the FLSA. These lists have been accorded mixed deference in the courts. They have not been modernized or updated since the early 1970s.
Consistent with recent rulemaking (i.e., regular rate and joint employer regulations) that has sought to make the FLSA more consistent with the modern-day workplace, the Wage and Hour Division has rescinded these lists and will now apply one overarching analysis as set forth in 29 C.F.R. §779.318 to determine whether particular establishments should be recognized as retail.
Fla. Employment Practice Hit With Wage, OT Suit - Law360
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As Businesses Reopen, DOL Allows Premium Payments Under the Fluctuating Workweek Method - Lexology
This final rule is helpful to employers and employees in the current COVID-19 environment, where businesses are increasingly implementing flexible work schedules and utilizing special forms of payment to incentivize and thank employees on the front lines.
The rule clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek method of compensation under the Fair Labor Standards Act (FLSA).
Previous DOL guidance provided that employee bonuses and other premium payments were inconsistent with calculating overtime under the fluctuating workweek method, which requires that employees receive a fixed salary basis. The final rule changes course and states that employers can pay bonuses, premium payments, or other additional pay, such as commissions and hazard pay, to employees compensated under the fluctuating workweek method.
Other things to check out:
Employee benefits used to aid coronavirus | HRExecutive.com
The majority of retailers are turning to bonuses, more pay and enhanced benefits to keep employees working during the coronavirus, according to new data.
A new survey of more than 50 major U.S. retailers by consulting firm Korn Ferry finds that 43% of essential retailer respondents to its May 6 survey say they have increased hourly pay, while 17% say they are offering a bonus to be paid into the future, and 22% say they are offering both increased hourly pay and a bonus. Only 17% say they are not offering premium pay, or "hero pay." The largest percentage (43%) say they are paying store employees an extra $2 an hour on average.
DOL Amends Regulation on "Fluctuating Workweek" Method of Pay | Proskauer - Law and the Workplace
For almost 80 years, it has been the law that an overtime-eligible employee whose hours fluctuate from week to week and who agrees to receive a fixed weekly salary covering all hours of work is entitled to a halftime premium for hours worked in excess of 40 per week—not a “time and a half” premium.
The FWW principles were first articulated by the Supreme Court in Overnight Motor Transportation Co. v. Missel , 316 U.S. 572 (1942). In 1950, the U.S. Department of Labor (“DOL”) codified the rule in the federal regulations. The modern-day version of the rule appears at 29 C.F.R. § 778.114 (“Section 114”).
New Challenges for Employers, But Old Accommodation, Anti-Discrimination, Wage Laws Still Apply -
In the unprecedented circumstances presented by the COVID-19 pandemic, employers contemplating bringing employees back to work are confronted with a world very different from the one that existed just over two months ago. Although the workplace experience will inevitably be altered by these new conditions, it is important that employers and workers remember that the old rules still apply.
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When formulating return to work plans, employers may consider asking all employees to first fill out a questionnaire or survey asking about COVID-19 symptoms, exposure to others with symptoms, travel and non-essential activities. As part of the inquiry, employers should consider asking employees to certify whether or not they are in a high-risk category as identified by the CDC. Any such inquiries should be made in compliance with applicable privacy and disability discrimination laws. The U.S.
Bethel Finance Director Quits Amidst Rampant Turnover At City's Finance Department | KYUK
The City of Bethel's finance department has a turnover problem that got even worse. Finance Director Christine Blake decided to quit early, citing a "chaotic and unprofessional environment." This marks at least the 14th employee to have left Bethel's finance department in as many months.
She also urged the city council to stop micromanaging her department. She said "for example, a line-by-line review of the budget isn't necessary; your Administration/Finance team has done the work." She also thanked her staff at the finance department and former Acting City Manager Bill Howell for their support over the past year.
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