The U.S. Department of Labor recently announced a proposed rule that would change the minimum salary threshold for exemption for the so-called “white collar” exemptions – the administrative, executive, and professional exemptions.

The federal Fair Labor Standards Act (“FLSA”) requires that employees receive minimum wage and overtime (calculated at one-and-a-half times the regular rate of

As summer approaches, many companies are beginning to hire students to work as unpaid interns.  While unpaid internships are a time-honored tradition, they are almost always illegal in the for-profit world.  Typically, the so-called “intern” is actually an employee who must be paid minimum wage and, if applicable, overtime.  Depending on state law, Workers’ Compensation and Unemployment might also apply to these individuals.  Recent years have seen a dramatic increase in enforcement surrounding this issue, and employers can no longer assume their unpaid internships will go unchallenged.  Like with most other employment laws, it does not matter if the individual agrees to an arrangement that is not permitted by law.  “The intern agreed to work unpaid” and “everyone in my industry does it” will not defeat a lawsuit or Department of Labor audit.

Many employers are under the mistaken impression that if the intern receives academic credit, there is no need to pay the intern.  This is not true.  Although some states require academic credit in order for the intern to be unpaid, this is never the sole factor.

According to the U.S. Department of Labor’s 6-part test, for-profit companies must pay interns at least minimum wage, unless all of the following criteria are met:

  1. The intern must receive training and the training  is similar to what would be given in a vocational school or academic educational instruction;
  2. The training is for the benefit of the intern;
  3. The intern does not displace regular employees, but works under their close observation;
  4. The employer derives no immediate advantage from the activities of the intern, and on occasion the employer’s operations may actually be impeded;
  5.  The intern is not necessarily entitled to a job at the conclusion of the training period; and
  6. The employer and the intern understand that the intern is not entitled to wages for the time spent in training.


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Seven (7) Long Island restaurants have consented to a settlement with the United States Department of Labor (“DOL”) that includes $1.6 million in back pay as well as over $110,000 in penalties and interest for willful violations of the Fair Labor Standards Act (“FLSA”).  Specifically, the DOL found the restaurants failed to pay employees a minimum wage, paid employees in cash, had illegal tip pools, and failed to keep records of all hours worked.


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A recent speech by Labor Secretary Thomas Perez at the IAFF conference provided some details about the changes to the managerial exemption to the Fair Labor Standards Act (“FLSA”).  Significantly, Secretary Perez reiterated that the current salary threshold of $455 is inadequate and that the primary duties test creates an employer friendly “loophole” that is used to prevent many low income employees from earning overtime. 

The last changes to the managerial exemption occurred in 2004 when the salary threshold was raised from $250 to $455.  This was the second increase in the 40 years the exemption has existed.  The remarks by Secretary Perez mirror those made by President Obama back on March 13th that the current $455 threshold is inadequate.  


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While both the Fair Labor Standards Act (“FLSA”) and Connecticut law permit an employer to include the reasonable value/cost of lodging provided to an employee as part of such employee’s wages towards the minimum wage, employers need to pay close attention to the differences between federal and state law. 

Under the FLSA, an employer may

Employers in the construction industry should not be surprised if the Department of Labor comes knocking at their door in the near future.  Recently, the Hartford office of the U.S. Department of Labor’s Wage and Hour Division announced an enforcement initiative to identify and eliminate wage and hour violations through increased compliance with the federal