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...

With the winter season and snowier conditions just around the corner, is your business prepared for the cold weather safety and leave requests that are also on the forecast?  When snow or ice makes it difficult for staff to travel to work or forces you to close your operations altogether, you may be obligated to pay certain employees. And while there are no specific federal rules on keeping workers safe in the cold, employers still face legal obligations to maintain a safe workplace. Here are a few important reminders and how to handle inclement weather-related leave requests. Risks Rise When the Temperature Drops The lower average temperatures that come along with the winter season present health-related safety risks for employees that primarily work outside. There are currently no federal regulations requiring employers to take specific precautions due to cold weather, but employers do have a legal obligation to maintain a workplace free from hazards. Employers should conduct a h...