1. Helping Your Clients Navigate the Fair Labor Standards Act
Presented by
James E. Griffis
October 4, 2017
Texas Advanced Paralegal Seminar

2. Fair Labor Standards Act (FLSA) . . . What is it? Why do you/clients care?
The Fair Labor Standards Act Of 1938 (“FLSA”)
Governs Minimum Wage & Overtime
Federal MW is $7.25 per hour; some states or cities may be higher (Seattle)
OT pay due to non-exempt workers for all hours worked over 40 in a workweek
OT = 1.5 times employee’s regular hourly rate

3. Fair Labor Standards Act (FLSA) . . . What is it? Why do you/clients care?
Exempt Workers = no overtime
Common Exemptions — White Collar
Executive
Professional
Administrative
Computer Employees
Highly Compensated Employees

4. Fair Labor Standards Act (FLSA) . . . What is it? Why do you/clients care?
Salary Basis Test--$455/wk or $23,660/yr
Duties Test
Executive (primarily management)
Professional (attorneys, accountants, engineers, architects, etc.)
Administrative (HR, accounting, public relations)
Computer (programmers, analysts, developers, etc.)
Highly-compensated (office or non-manual work; $100,000)

5. Who Must Comply with the FLSA?

6. Enterprise Coverage Businesses with Annual Sales of $500,000
Hospitals and businesses providing medical care or nursing care
Schools and preschools
Government agencies
Nonprofits: It Depends; see Fact Sheet #14A

7. Individual Coverage Alternative to Enterprise Coverage
Interstate Commerce or
Production of goods for commerce

8. FLSA Challenges

9. Top 5 Reasons for FLSA Lawsuits
Number 5
Misclassification of Exempt Workers (salaried does not mean exempt)

10. Top 5 Reasons for FLSA Lawsuits
Number 4
Classifying Workers as Independent Contractors

11. Top 5 Reasons for FLSA Lawsuits
Number 3
Violations of Tip Credit

12. Top 5 Reasons for FLSA Lawsuits
Number 2
Improper Calculation of OT

13. Top 5 Reasons for FLSA Lawsuits
Improper Calculation of OT
Regular Rate of Pay
Referral Fees
Bonuses
Incentive Pay

14. Top 5 Reasons for FLSA Lawsuits
Number 1
Improper Deductions from Employee’s Wages/Salaries

15. Top 5 Reasons for FLSA Lawsuits
Improper Deductions from Employee’s Wages/Salaries
Actual Deduction
Implied Deductions (Uniforms & Tools of the Trade)

16. Why is the FLSA Important?

17. Consequences of Errors
Back wages
Liquidated Damages
If Employee is successful in court, then entitled to mandatory attorney’s fees
2-year statute of limitations applies to the recovery of back wages and liquidated damages
3-year statute of limitations applies in cases involving willful violations
Fines, interest, and possible criminal sanctions

18. Consequences of Errors (cont.)
Personal liability
Department of Labor Investigations
Private enforcement by employee through lawsuit (or in some cases arbitration)
Collective Action by group of similarly-situated employees

19. Consequences of Errors (cont.)
Number of FLSA Cases Filed (2009 – 2016)
WHD Enforcement Statistics: FLSA
Source: U.S. Department of Labor, Wage and Hour Division

20. Consequences of Errors (cont.)
DOL collected $266 million in back OT wages in FY for 280,000 employees
Averages out to $930 per employee
Source: U.S. Department of Labor, Wage and Hour Division

21. James E. Griffis Direct: (817) 870-8755 jgriffis@hfblaw.com
Mr. Griffis’s practice is primarily concentrated in the area of labor and employment law. He represents business clients of all sizes in employment litigation and administrative proceedings in front of the Texas Workforce Commission, Department of Labor, Texas Commission on Human Rights, and the Equal Employment Opportunity Commission.
He also regularly advises clients regarding issues affecting the employment relationship and compliance with the Fair Labor Standards Act, FMLA, Title VII, ADA, ADAA, ADEA, Texas Payday Law, and Texas Commission on Human Rights Act.

22. Helping Your Clients Navigate the Fair Labor Standards Act
Presented by
James E. Griffis
October 4, 2017
Texas Advanced Paralegal Seminar