Compliance Stuff

The US Department of Labor’s (DOL) Wage and Hour Division recently announced a proposed rule that would establish a standard for determining joint-employer status under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) . The proposed rule seeks to harmonize the joint-employment framework by i mplementing a uniform standard across these three federal statutes. Notably, the 60-day comment period ended on June 22, 2026 . In Depth Under the FLSA, joint employers are “jointly and severally liable” for compliance with the statute’s requirements, including overtime pay . The proposed rule distinguishes between vertical and horizontal business relationships, establishing a separate standard for determining joint-employer status for each scenario . Vertical joint employment exists when an employee is “jointly employed by two or more employers that simultaneously benefit from the employee’s work” ...

A recent opinion letter from the U.S. Department of Labor, Wage and Hour Division (WHD), FLSA2026-5 , offers a helpful reminder for employers managing exempt classifications — particularly in workplaces where employees may perform a mix of exempt and non-exempt work. The key takeaway: An employee does not lose exempt status simply because they perform additional non-exempt work — even if that work is paid hourly — so long as the core exemption requirements are met. The Scenario: Blended Roles in the Workplace The opinion letter describes a nonprofit acute care hospital that employs exempt “nursing professional development specialists” for 40 hours during the week, but they sometimes pick up one or two 12-hour weekend shifts as “staff nurses,” which is a position classified as non-exempt. During those extra weekend shifts, specialists are paid an hourly rate for the additional work. Thus, the question is whether an employer can employ an individual in both an exempt and non-exempt capa...

At a Glance The Third Circuit held that the Fair Labor Standards Act (FLSA) does not allow recovery of “overtime gap time.”  The court squarely rejected the DOL’s position that employees must be paid their “regular rate” for all hours worked before overtime is calculated.  The court declined to defer to longstanding DOL guidance, finding it unpersuasive and unsupported by the statute’s text.  As a result, unpaid straight-time wage claims are pushed into state law and contract theories, not the FLSA. In a significant development for employers in the Third Circuit, the U.S. Court of Appeals for the Third Circuit recently held that the FLSA does not permit recovery of “overtime gap time” wages. While the decision limits the scope of federal wage-and-hour liability in the Third Circuit, it leaves open the possibility of state law and contract remedies.  Background The case arose from a U.S. Department of Labor (DOL) enforcement action against a group of healthcare facil...

At a Glance The Policy Week in Review, prepared by Littler’s Workplace Policy Institute (WPI), sets forth WPI’s updates on federal legislation, regulations, and congressional activity affecting the workplace. DOL Rescinds Biden-Era Overtime Rule  On May 14, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) issued a technical amendment designed to unwind the Biden-era regulation and restore the 2019 Trump-era regulation establishing the salary level needed to qualify for the Fair Labor Standards Act (FLSA) “white collar” overtime exemptions. For further Littler analysis, read here . It is unclear if the DOL will revisit the 2019 rule and pursue a new rulemaking. Discharge Petition on “Faster Labor Contracts Act” Closer to 218-Signature Threshold As previously reported, the Discharge Petition (H.Res. 1140) filed by Representative Donald Norcross (D-NJ) to bypass committee consideration and force a House floor vote on union-backed H.R. 5408, the “Faster Labor Contract...

Employees and employers are planning ahead for upcoming holidays like Memorial Day, Juneteenth, Independence Day, and Labor Day. Paid company holidays are common, but the total number per year may vary by industry, location, or union status. 0:00 6:33 Quick Hits There are eleven federal holidays in 2026. Private employers are not legally obligated to provide paid holidays. Work performed by hourly, nonexempt employees on a holiday is compensable. Although federal law does not require private businesses to provide paid holidays , many companies voluntarily recognize certain federal holidays as paid holidays in order to boost recruiting, retention, and morale. Some companies choose to include paid holidays within their combined paid time off (PTO) policy, so that employees can pick which holidays they prefer to observe. In 2026, there are eleven federal holidays : New Year’s Day (January 1), Martin Luther King, Jr., Day (January 19), Inauguration Day (January 20), President’s Day (Febru...