Compliance Stuff

The U.S. Department of Labor’s Wage and Hour Division has unveiled a proposed rule aimed at providing regulatory guidance if a worker should be classified as an employee or independent contractor under the Fair Labor Standards Act and other federal laws. The proposal would rescind the department’s 2024 independent contractor rule and reinstate an analytical framework more closely aligned with the 2021 standards and “long-standing legal principles used in federal courts across the country,” emphasizing an “economic reality” test. The proposed rule aims to help employers and workers navigate classification decisions more predictably, potentially reducing disputes and litigation over misclassification. Source(s): Zheliabovskii, R. (2024).  DOL Proposes Rule to Rescind 2024 Independent Contractor Standard . Shrm.org. https://www.shrm.org/topics-tools/employment-law-compliance/dol-proposes-rule-to-rescind-2024-independent-contractor-standar ‌  

Takeaways The DOL stated in a 01.05.26 opinion letter that if an employee is scheduled to use less than a full workweek of FMLA leave, the time when the employer (a school) is closed for inclement weather will not be deducted from the employee’s FMLA entitlement unless the employee was expected to work during the school closure.  Conversely, however, the opinion letter states i f an employee is scheduled to take a full workweek of FMLA during a week when the school is closed for part of the week, the entire week is counted against an employee’s FMLA entitlement.   The DOL announced in June 2025 that it would launch an expanded opinion letter program. Related link FMLA2026-1 Article The Department of Labor (DOL) Wage and Hour Division issued an  opinion letter  on Jan. 5, 2026, analyzing how a school closure of less than one full week affects the Family and Medical Leave Act (FMLA) entitlement of an employee on scheduled FMLA leave . The DOL analyzed key differences ...

On January 5, 2026, the U.S. Department of Labor (DOL) issued  Opinion Letter FLSA2026‑1 , addressing whether an employer may classify an employee as non‑exempt even when the employee satisfies the educational and job duties requirements of the Fair Labor Standards Act’s (FLSA) learned professional exemption. The opinion letter arose from a request involving a Licensed Clinical Social Worker (LCSW) employed by a healthcare organization. The employee performed core job duties that included clinical assessments and psychosocial evaluations; treatment planning and documentation; participation in interdisciplinary care teams; crisis intervention and discharge planning; and consistent application of professional discretion and clinical judgment. The employee had been classified as exempt since obtaining her professional license, but following an internal restructuring that eliminated supervisory responsibilities, they were reclassified as non-exempt. The employee sought clarification a...

On September 30, 2025, the U.S. Department of Labor (DOL) issued an  opinion letter  containing important reminders about how to calculate overtime pay for non-exempt employees who earn amounts in addition to their base hourly wage. The opinion letter involved firefighters and paramedics who receive premium pay equal to one-half times their normal hourly rate for work performed during a disaster or emergency declaration. The Fair Labor Standards Act (FLSA) provides that non-exempt employees must be paid not less than one and one-half times their regular rate for hours worked above 40 in a workweek.  An employee’s regular rate is not limited to their base hourly wage. Instead, it includes all remuneration paid to the employee, subject to only eight statutory exclusions. The question presented was whether the “emergency pay” premiums qualified for any of those exclusions. The DOL answered in the negative. Among other considerations, the DOL opined that the premiums did not ...

In California, the “regular rate of pay” is used to calculate overtime pay, paid sick leave under the Healthy Workplaces, Healthy Families Act, meal and rest period premiums, split shift premiums, and reporting time pay. Employers often assume the regular rate of pay is simply the employee’s base hourly rate. However, if an employee is paid multiple rates for different work, or receives other forms of compensation, their “regular rate of pay” will be more than the base rate. Employers who ignore this distinction risk costly wage and hour claims, PAGA actions, and Labor Commissioner audits. What Is the Regular Rate of Pay? The regular rate of pay is the true hourly rate an employee earns, factoring in most types of compensation—not just their base wage . Employers must calculate this rate accurately any time pay employees more than a base hourly rate. This concept is particularly important in California, which imposes stricter requirements than federal law in some situations. To calcula...

At a Glance The Policy Week in Review, prepared by Littler’s Workplace Policy Institute (WPI), sets forth WPI’s updates on federal, state, and local matters. Trump Administration Releases Spring Unified Agenda of Regulatory and Deregulatory Actions On September 4, 2025, the administration released its long-awaited  2025 Spring Regulatory Agenda , which lists the aspirational regulatory goals of agencies across the federal government. Noteworthy actions at the Department of Labor include its intention to rescind the 2024 Independent Contractor Rule, which is subject to five separate pending legal challenges, and consider how to proceed with a proposed rule on the independent contractor classification issue under the Fair Labor Standards Act (FLSA). The Department is also considering a notice of proposed rulemaking to address joint employer liability under the FLSA in an effort to “promote greater uniformity among court decisions nationwide.” Notably absent from the agenda is the Dep...

Recent protests across major U.S. cities, including Los Angeles, have resulted in business disruptions impacting both employers and their employees . While most demonstrations have been peaceful, some instances of violence have resulted in government responses, such as the imposition of curfews . The events are a reminder for employers to prepare for emergencies in the face of increasing civil unrest and government responses. Quick Hits With ongoing protests in many major U.S. cities and resulting action by the federal, state, and local governments, such as city officials imposing curfews, employers may want to revisit and revise their emergency plans, including to ensure compliance with all applicable laws and orders and ensure employee safety and preservation of safe operations.     Maintaining clear communication and providing adequate notice of changes to schedules and flexibility in work arrangements can help businesses navigate disruptions caused by protests and oth...