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HR Professionals - Are you impacted by changes to the US Fair Labour Standards Act (FLSA)

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Speaking to a number of people recently who are working for US owned businesses and the topic that seems to be the most discussed is the Fair Labour Standards Act (FLSA). A few of the people I am speaking to are at the centre of ensuring compliance with the updated legislation requirements. The most recent amendments include:

A four-factor balancing test for determining FLSA joint employer status. The balancing test examines who is responsible for:

  • Hiring or dismissing the employee
  • Supervising and controlling the employee’s work schedule or conditions of employment
  • Determining the employee’s rate and method of payment
  • Maintaining the employee’s employment records.

The final rule also clarifies when additional factors may be relevant to a determination of FLSA joint employer status and identifies certain business models, contractual agreements with the employer.

The Wage and Hour Division have also in the last couple of days announced additional changes among which are:

  • FLSA2020-12: Addresses an employer’s compliance with FLSA’s minimum wage requirements when reimbursing delivery drivers for business-related expenses incurred while using their personal vehicles during the course of employment;
  • FLSA2020-14: Addresses whether employees’ hours must fluctuate above and below 40 hours per week to qualify for the fluctuating workweek method of calculating overtime pay.

My understanding is that many of these areas are what we in the UK have referred to as Working Time Directive (WTD) and of course minimum wages we operate with in the UK, so I am keen to hear and understand from the HR professionals out there: 

  • Is your job is being impacted by this?
  • Are you involved in ensuring compliance for this?
  • What challenges (if any), have you faced?

Caterina Glenn

Please do get in touch with me - / 07717744241


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