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1 week ago | 
jdsupra.com | Justin Barnes |Jeffrey W. Brecher |Felice Ekelman
Takeaways The House and Senate bills differ in key ways, including that while the House bill would provide a deduction on tips and overtime earnings, the Senate bill provides a deduction for tips only. It remains to be seen which measures will pass in Congress. President Trump is expected to sign a bill that provides some sort of tax relief on tips or overtime pay. Employers could consider restructuring compensation policies.
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3 weeks ago | 
jdsupra.com | Justin Barnes |Jeffrey W. Brecher
Takeaways When analyzing employment status under the FLSA, DOL investigators will apply previous subregulatory guidance, instead of the 2024 independent contractor final rule, including a 2019 opinion letter addressing independent contractor status and a 2008 fact sheet. Several lawsuits challenging the 2024 final rule are pending but the litigation is on hold as the DOL considers whether to rescind the rule.
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1 month ago | 
jdsupra.com | Justin Barnes |Jeffrey W. Brecher
Takeaways The Trump DOL has officially notified the Fifth Circuit that it intends to reconsider the 2024 final rule raising the FLSA salary level for “white collar” exemptions. It has asked for a litigation stay pending the agency’s further reconsideration of the rule. District courts had enjoined the 2024 final rule, but the Biden DOL appealed the case to the Fifth Circuit.
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1 month ago | 
jdsupra.com | Justin Barnes |Jeffrey W. Brecher
Takeaways In several ongoing lawsuits, the DOL has notified the courts that it will reconsider its 2024 independent contractor rule and may issue a new rule. The 2024 rule formally rescinded an independent contractor rule issued at the close of the first Trump Administration. The 2024 rule remains in effect while the cases are held in abeyance; however, the DOL is unlikely to enforce it.
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2 months ago | 
jdsupra.com | Justin Barnes |Jeffrey W. Brecher
Takeaways Nominated to head the DOL Wage and Hour Division, Andrew Rogers would return to the agency after a stint at the EEOC. Nominated for DOL solicitor of labor, Jonathan Berry is an attorney in private practice and had authored the DOL chapter of the Project 2025 policy platform, which backs compliance assistance over enforcement.
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Jan 30, 2025 | 
jdsupra.com | Justin Barnes |Jeffrey W. Brecher
The Trump Administration has asked the U.S. Court of Appeals for the Fifth Circuit to postpone oral argument in a lawsuit challenging President Joe Biden’s 2024 independent contractor rule. The U.S. Department of Justice filed a motion to pause oral argument in a legal challenge brought by trucking companies in order to give the incoming leadership at the U.S. Department of Labor (DOL) a chance to review the case and determine its next steps in the litigation.
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Jan 20, 2025 | 
mondaq.com | Justin Barnes |Jeffrey W. Brecher
TakeawaysEmployers need only establish that an exemption applies througha "preponderance of evidence," not the higher "clearand convincing evidence" standard. An outlier decision by the Fourth Circuit is reversed, easingthe burden of proof for employers in Maryland, North Carolina,South Carolina, Virginia, and West Virginia. While this case involved application of the FLSA's outsidesales exemption, the reasoning applies to all statutoryexemptions.
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Jan 16, 2025 | 
jdsupra.com | Justin Barnes |Jeffrey W. Brecher
Takeaways Employers need only establish that an exemption applies through a “preponderance of evidence,” not the higher “clear and convincing evidence” standard. An outlier decision by the Fourth Circuit is reversed, easing the burden of proof for employers in Maryland, North Carolina, South Carolina, Virginia, and West Virginia. While this case involved application of the FLSA’s outside sales exemption, the reasoning applies to all statutory exemptions.
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Nov 19, 2024 | 
mondaq.com | Justin Barnes |Jeffrey W. Brecher
Takeaways:
The Rule was vacated nationwide in its entirety, including the
July 1 salary level increase already in effect. The salary level in
effect prior to July 1 ($35,568 per year, $684 per week) is
restored. The slated Jan. 1, 2025, increase to $58,656 annually
also is vacated. The annual salary level for the highly compensated
employee exemption returns to its pre-July 1 threshold of
$107,432.
If the DOL appeals, the incoming administration is not likely
to continue defending the 2024 Rule.
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Nov 19, 2024 | 
jdsupra.com | Justin Barnes |Jeffrey W. Brecher
Takeaways: The Rule was vacated nationwide in its entirety, including the July 1 salary level increase already in effect. The salary level in effect prior to July 1 ($35,568 per year, $684 per week) is restored. The slated Jan. 1, 2025, increase to $58,656 annually also is vacated. The annual salary level for the highly compensated employee exemption returns to its pre-July 1 threshold of $107,432.
