The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) issued four new opinion letters that address compliance under the Fair Labor Standards Act (FLSA) [DOL, News Release, 11-8-18].
The opinion letters rule on these issues:
- Determining when an employer may take a tip credit for an employee who has “dual jobs” where some activities meet tip credit requirements and others do not [Opinion Letter FLSA2018-27].
- Whether a nonprofit, privately owned fire department was entitled to use the partial overtime exemption in FLSA §7(k) for employees of public agencies engaged in fire protection activities [Opinion Letter FLSA2018-24].
- The amount of extra compensation a salaried employee may receive without losing the exemption. Under 29 C.F.R. §541.604(b) a reasonable relationship must exist between the guaranteed salary amount and the amount actually earned. The opinion letter concludes that a ratio of 1.8 times the salary amount was not a reasonable relationship [Opinion Letter FLSA2018-25].
- Whether a company that operates and maintains swimming pool facilities at hotel, motel, apartment, and condominium buildings qualifies as an “amusement or recreational establishment” under FLSA §13(a)(3) [Opinion Letter FLSA2018-26].
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
