This month, the U.S. Court of Appeals for the Third Circuit held that the Fair Labor Standards Act (“FLSA”) requires employers to compensate employees for all rest breaks of twenty minutes or less.

Background

American Future Systems arose from a suit filed by the U.S. Department of Labor (“DOL”) on behalf of former employees of publishing company American Future Systems, Inc. dba Progressive Business Publications (“Progressive”) under the FLSA. Progressive employed sales representatives who were paid by the hour and received bonuses based on the number of sales made while they were logged onto their work computers. These employees were previously subject to a policy which gave them two fifteen-minute paid breaks per day, however, Progressive eliminated the policy in favor of a so-called “flexible time” policy under which they could log-off their work computers at any time, for any reason. Although employees were free to take as many breaks as they wanted, they were not paid for these breaks if they were logged off for more than a minute and a half, including short breaks spent in the bathroom or getting coffee.


Continue Reading Short Rest Breaks are Compensable Under the FLSA

On November 22, 2016, a federal court in the Eastern District of Texas issued a preliminary injunction blocking the Department of Labor from enforcing new regulations that would have drastically reduced the number of white collar employees who are exempt from overtime.  The disputed regulations were set to take effect on December 1.
Continue Reading Texas Federal Court Blocks New Salary Restrictions for Exempt Employees

On May 26, 2016, in the matter of Lewis v. Epic Systems Corporation, the U.S. Court of Appeals for the Seventh Circuit held that an arbitration agreement, which required employees to submit to individual arbitration for any wage and hour claims against the company, violates the National Labor Relations Act (“NLRA”) and is unenforceable under the Federal Arbitration Act (“FAA”).  In issuing this decision, the Seventh Circuit gave credence to the National Labor Relations Board’s (“NLRB”) decision in D. R. Horton and, in doing so, has created a split amongst U.S. Circuit Courts of Appeal regarding the enforceability of arbitration agreements that preclude class actions.
Continue Reading Seventh Circuit Holds Class Action Waivers are Unlawful and Unenforceable Creating a Circuit Split