New Wage and Hour Opinion Letters on Nondiscretionary Bonuses, the Highly Compensated Employee Exemption, and Rounding Practices

Employee Benefit Plan Review October 2019

Jeffrey H. Ruzal, Member of the Firm, and Carly Baratt, Associate in the Employment, Labor & Workforce Management practice, in the firm’s New York office, co-authored an article in Employee Benefit Plan Review, titled “New Wage and Hour Opinion Letters on Nondiscretionary Bonuses, the Highly Compensated Employee Exemption, and Rounding Practices.”

Following is an excerpt (see below to download the full version in PDF format):

After a brief, two-month hiatus, the Wage and Hour Division of the U.S. Department of Labor (WHD) has issued another round of opinion letters answering various questions submitted by the public. Specifically, these opinion letters address the calculation of overtime pay for nondiscretionary bonuses, the application of the highly compensated employee exemption to paralegals, and rounding hours worked under the Service Contract Act (SCA). This guidance marks the first issued by the new Wage and Hour Administrator Cheryl Stanton, who has been in the seat since April.

As is usually the case, despite the fact-specific nature of the questions and resulting analysis for these opinion letters, the WHD’s advice can, in certain situations, have broader applicability. Accordingly, we encourage employ­ers to take note of these letters and consult with counsel if they have questions about their practices.

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