Compliance Stuff

  On January 5, 2026, the U.S. Department of Labor’s Wage and Hour Division issued   Opinion Letter FLSA2026-2 , addressing whether certain “Safety, Job Duties, and Performance” bonuses may be excluded from an employee’s regular rate of pay when calculating an employee’s overtime premium under Section 7(e) of the Fair Labor Standards Act (FLSA). The short answer: they cannot, at least under the circumstances analyzed in the opinion letter. The opinion letter involves a pay plan for waste-management drivers that included a base hourly rate plus incentive bonuses tied to safety, job performance, and completion of duties. These bonuses were formula-driven and could add up to $9.50 per hour when specific criteria were met. Once those criteria were satisfied, the amount of the bonus was quantifiable under the plan and automatically earned by the employee.  The DOL confirms in this opinion letter that Section 7(e)(3) of the FLSA allows exclusion only of truly discretionary bonu...

Here are the top items you should tackle this November, based on the latest workplace law developments and upcoming critical compliance dates:   _____ Assess the impact as the government shutdown continues.  We’re now experiencing one of the longest government shutdowns in US history, which will have a huge impact on federal agency enforcement and the roll out of new regulations. What do employers need to know as we wait for a resolution? Here are our  answers to your top questions . _____ Be prepared for hurricanes and other natural disasters.  Recent devastating hurricanes in the Caribbean served as a stark reminder for US employers to review response plans and prepare for a possible late-season storm that could disrupt operations. Here are  the most critical issues you need to be aware  of during preparation and recovery. _____ Track workplace issues on the Supreme Court’s docket.   The Supreme Court kicked off a new term on October 6 and is set to ...

On June 27, 2025, the U.S. Department of Labor (DOL) Wage and Hour Division (WHD) issued new field assistance indicating it will no longer seek liquidated damages in administrative matters against employers for unpaid minimum wage or overtime under the Fair Labor Standards Act (FLSA) . The field assistance takes the position that the WHD is not authorized to seek liquidated damages unless it does so through a lawsuit. Quick Hits The WHD issued field assistance instructing regional solicitors (RSOLs) to stop seeking liquidated damages in administrative matters over unpaid minimum wage and overtime. The field assistance states that the WHD has determined that the FLSA does not authorize the secretary of labor to seek liquidated damages unless the division files a lawsuit, a change to recent enforcemen t. The policy change took effect on June 27, 2025, and applies prospectively. Field Assistance Bulletin (FAB) No. 2025-3  clarifies that the WHD may not supervise the payment of liquid...