Introduction
This educational seminar will teach funeral professionals some of the history and public policy behind labor laws, especially the Fair Labor Standards Act (“FLSA”). We will then discuss the recent changes, the court challenges of those changes, and their effects on funeral homes with employees, whether exempt or non-exempt.
Contact hours: 1 Law
Course Outline
Introduction of Speaker and Presentation Goals
Why This Course Now
- The federal government proposed increases to the minimum salaries for overtime exemption.
- In November, a federal court invalidated the increases.
- New York State’s increases took effect on January 1, 2025.
Course Goals
- Explain why we have labor laws such as the FLSA
- Review recent changes and court cases
- Consider whether funeral homes have properly classified their workers
Introduction of Topic and Key Presentation Points
Purpose of Fair Labor Standards Act (“FLSA”)
The purpose of the FLSA is to federally-mandate:
- a minimum wage
- maximum hours for a work week
- standards regarding overtime pay, pay equality, record-keeping, and child labor
History of FLSA
In its original form, the 1938 FLSA guaranteed a $0.25 minimum wage and a maximum 44-hour work week.
- 1933 New Deal and The Great Depression
- Supreme Court had previously struck down as unconstitutional child labor and minimum wage laws
Other “Fair Labor” Laws
- Americans with Disabilities Act (“ADA”)
- Age Discrimination in Employment Act (“ADEA”)
- Civil Rights Act
- Employment Retirement Income Security Act (“ERISA”)
- Equal Pay Act (“EPA”)
- Family Medical Leave Act (“FMLA”)
- National Labor Relations Act (“NLRA”)
- Occupational Safety and Health Act (“OSHA”)
- Construction Industry Fair Play Act
- Wage Theft Prevention Act
Presumptions Regarding Employers
In 2021, the United States Department of Labor (“USDOL”) received 7,159 overtime complaints. These resulted in back wages awards to 145,038 employees.
- More powerful position
- More knowledgeable
- Assumed the risk (higher standard and due of care)
Exempt Employee v. Non-Exempt Employee
You can use the FLSA Advisor to check worker classifications. Here is the criteria for the overtime exemption:
- Primary duty consists of office or non-manual field work directly related to management policies or general operations
- Customarily and regularly exercises discretion and independent judgment
- Regularly and directly assists (in bona fide executive or administrative capacity or under general supervision) work along specialized or technical lines requiring special training, experience or knowledge
- Paid for their services on a salary basis, inclusive of board, lodging, other allowances and facilities, of not less than $684.00 per week ($1,237.50, or $64,350.00 in NYC and Long Island; $1,161.65, or $60,405.80 in the rest of NYS)
A Note About Independent Contractors
To determine whether a worker is an employee or an independent contractor under the FLSA, courts use the multi-factorial economic realities test, which focuses on whether the worker is economically dependent on the employer rather than running an independent business with multiple contracts to perform the services for others.
Court Challenges
Confidential
In 2017, a human resource management company was forced to pay $3,400,000.00 in unpaid overtime to 743 account executives and sales representatives.
Helix Energy Solutions Group, Inc. v. Hewitt, 598 U.S. 39 (2023)
In Helix Energy, a supervisor who was paid at least $963 each day and earned more than $200,000 annually was awarded overtime pay. Despite his high pay, the court held he was non-exempt because he was paid a daily rate and not a salary. His compensation fluctuated based on the number of days he worked.
Moreno v. Future Care Health Services, Inc., 992 N.Y.S.2d 159 (S.Ct., Kings Co. 2014)
The Moreno case caused the New York State Department of Labor to issue emergency regulations regarding compensation for live-in home care aides (HCA). Although HCAs are entitled to overtime pay if they work more than 44 hours in one week, employers are allowed to deduct sleep and meal times for 24-hour workers.
Rowe v. Olthof Funeral Home, Inc., 2011 U.S. Dist. LEXIS 118182 (W.D.N.Y. Oct. 12, 2011)
In Rowe, a licensed funeral director filed a FLSA lawsuit for overtime wages, alleging his two-year associate’s degree did not make him exempt from overtime pay under the learned professional exemption. He met the minimum salary threshold, so the decision denying him OT pay was focused mostly on his duties and his use of advance knowledge acquired through his academic background and licensing process.
Review of Key Presentation Points
- Even human resources management companies are getting FLSA requirements wrong.
- FLSA claims continue to increase—and result in payouts by employers.
- Classifying a worker as an independent contractor might not protect you from a FLSA claim.