Category Archives: Employee Compensation

SCOTUS Update: DOL Rule Reversal to Impact “Narrowly Construed” FLSA Class Exemptions

In a 5-4 decision, the Supreme Court ruled on Monday that automobile service advisors are exempt from the overtime requirements of the Fair Labor Standards Act. While the decision would appear to apply only to a narrow class of employers (automobile dealers), the majority opinion rejected the principle that exemptions to the FLSA should be construed narrowly, which has the potential for much broader impact. Encino Motorcars v Navarro involved an exemption under the FLSA which provides that that statute’s overtime-pay requirement does not apply to “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles . . …

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New Tax Law Affects Executive Compensation

The final tax reform bill signed by President Trump on December 21, 2017 makes substantial changes to executive compensation paid by private and public companies and non-profit organizations.  But it could have been worse.  Significant restrictions on nonqualified deferred compensation plans were removed from the final bill.  This article briefly summarizes the major changes: Private Companies:  Employee Deferral of Stock Option Gains The law adds a new Section 83(i) to the Tax Code that, subject to a number of conditions, allows employees to elect to defer the inclusion of income arising from the exercise of stock options and the payment …

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DOL Announces PAID – the Pros and Cons of the Wage and Hour Self-Audit

Double (liquidated) damages and attorneys’ fees are often the tail that wags the settlement dog in government audits and wage and hour litigation.  Employers now have another strategy for dealing with unintentional wage and hour pay errors – but only on a trial basis. On March 6, 2018, the United States Department of Labor Wage and Hour Division (WHD) announced a national pilot program for employer self-audit of wage and hour violations under the Fair Labor Standards Act (FLSA). The FLSA is the federal statute that governs payment of minimum wage and overtime pay for nonexempt employees.  The program, aptly …

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