Thu, 05/13/2021
President Biden’s administration has made several changes to wage and hour regulations and guidance within its first 100 days. The Department of Labor (“DOL”) revised the Fair Labor Standard Act (“FLSA”)’s tip regulations. The previous administration attempted to implement several last-minute regulations regarding tip credits, but the Biden administration delayed the effective date of those regulations including a regulation on the tip credit for the tipped employees who perform some non-tipped duties and a regulation on civil money penalties. The DOL suggested that it will withdraw and propose new regulations. Since many of the previous administration’s regulations were not finalized, DOL also withdrew several premature FLSA opinion letters released by the previous administration.
Additionally, DOL rolled back the joint employer rule. Under the previous administration, the joint employer rule was a four-part test that was more favorable to employers when determining which entities are joint employers under the FLSA.
The Administration has also withdrawn the independent contractor rule which made it easier to classify workers as independent contractors under the FLSA. With the end of this independent contractor rule, gig workers for business such as Uber, Lyft and DoorDash will likely be entitled to minimum wage and overtime compensation under the FLSA. The DOL believes that rolling back this regulation is essential for a healthy economy.
Finally, the Biden administration has expressed support for a $15 federal minimum wage, which President Biden has implemented for federal contractors beginning in 2022.
Overall, President Biden’s DOL has been extremely active in rolling back many regulations that were detrimental to workers. The Administration will likely engage in robust rulemaking as it moves past the first 100 days.
If you believe your employment may be affected by these changes in wage and hour regulations, please contact MSE at info@mselaborlaw.com
