In a recently decided court case, the Third Circuit Court of Appeals has ruled that paid time off (sometimes referred to as PTO) earned through an employee’s job does not count as part of their salary. As a result, deductions made from an employee’s PTO by their employer does not violate the Fair Labor Standards Act (FLSA). This case is the first of its kind to be decided at the Circuit Court level, meaning it may influence how other similar decisions are made. Continue reading “Federal Appeals Court Says PTO is Not Salary”
Tag: FLSA
Ninth Circuit Rules Pre-Shift Duties Covered by FLSA
In a recent decision issued by the Ninth Circuit Court of Appeals, it was ruled that the Fair Labor Standards Act (FLSA) requires compensation for pre-shift duties, such as turning on a computer and logging into a system. This reverses a lower court decision that had ruled the opposite, exempting employers from compensating employees for this extra time. The result could be a substantial increase in the pay for certain wage-earners.
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Federal Bill Proposal Seeks To Raise Overtime Threshold
In a combined effort to ensure overtime protections for low- and mid-wage salaried workers, Senator Tom Harkin (D-IA), Chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee, along with eight Senate officials, recently introduced the Restoring Overtime Pay for Working Americans Act.
Presently, the Fair Labor Standards Act (FLSA) guarantees a minimum wage and overtime pay for private-sector U.S. workers. However, many workers are considered “exempt” from the law, partly because of a salary threshold, $23,660 per year or $455 per week, which is specifically directed at managers and “professional” employees.
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