HR News, Human Resources

BREAKING NEWS: U.S. DOL Issues 3 New Opinion Letters

Hey Compliance Warriors!

The U.S. Department of Labor today announced three new opinion letters that address compliance issues related to the Fair Labor Standards Act (FLSA). An opinion letter is an official, written opinion by the Department’s Wage and Hour Division (WHD) on how a particular law applies in specific circumstances presented by the person or entity that requested the letter. Read on…

The opinion letters issued today are:

  • FLSA2021-3: Addressing whether certain entities satisfy the “establishment” requirement under Section 13(a)(3) of the FLSA, and whether an accrual method of accounting may be used to satisfy the “Receipts Test” under Section 13(a)(3)(B).
  • FLSA2021-4: Addressing whether a restaurant may institute a tip pool under the FLSA that includes both servers, for whom the employer takes a tip credit, as well as hosts and hostesses, for whom a tip credit is not taken.
  • FLSA2021-5: Addressing the proper calculation of overtime pay under the FLSA for tipped employees receiving tips and amounts charged as automatic gratuities or service charges.

The public can search for existing opinion letters by keyword, year, topic, and a variety of other filters on the Department’s website. The Department also encourages the public to submit requests for opinion letters to WHD to obtain an opinion or to determine whether existing guidance already addresses their questions. The Division exercises its discretion in determining whether and how it will respond to each request.

Be Audit-Secure™

Lisa Smith, SPHR, SHRM-SCP


Lisa Smith is CEO of Andere Corporation and Chief Content Developer at HelpDeskSuites.com. Follow her on Twitter, connect with her on LinkedIn, listen to her Small Business Spoonfuls Podcast, and find more in her Compliance Warriors Facebook Group.

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