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Located in the Miami metropolitan area, the Law Offices of Santiago J. Padilla, P.A., offers comprehensive services for business clients with a variety of needs.

Posts tagged "Wages and Hours"

New Wage and Hour Rule Now makes More Workers Eligible for Overtime Compensation

I am happy to report that today, the U.S. Department of Labor announced that a new overtime rule will go into effect on January 1, 2020 that will cover an additional 1.3 million U.S. workers.

Automobile Salespersons are Entitled to Overtime Compensation

Every now and then we are asked whether or not automobile salespersons are entitled to overtime compensation.  The U.S. Department of Labor (DOL) answered that question in the affirmative several years ago in an action the DOL brought against Plattner Automotive Group, which operates 11 dealerships in the State of Florida.  The Department of Labor determined that the company had violated provisions of the Fair Labor Standards Act (FLSA). One of the points stressed by the DOL in that case was that while there is an overtime exemption for commissioned automobile salespersons, such salespersons must still be paid at least the federal minimum wage for all of the hours that they work.

A Mandatory Gratuity or Service Charge is Not a Tip and Need Not be Shared with Employees

As many people know, under the Fair Labor Standards Act, persons who work for tips are called tipped employees and the employer may pay such employees less than the required minimum wage. For a the employer, this is called the "tip credit."  This applies to most restaurant employees, such as waiters, bussers, etc. However, the law also states that such employees must be able to keep all of the tips received and the employer cannot keep any portion of those tips.

Proposed Rule May Allow Millions to Qualify for Overtime Compensation

Last week, the U.S. Department of Labor ("DOL") issued a Notice of Proposed Rulemaking that would allow millions of additional workers to receive overtime compensation. In particular, under the current law, administrative employees that earn at least $455 per week are not entitled to overtime compensation. Section 12(a)(1) of the Fair Labor Standards Act of 1938 provides an exemption from both minimum wage and overtime pay for such employees.