The DOL Will, Once Again, Tell You What it Thinks

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For years, the Wage and Hour Division of the Department of Labor (WHD) provided official guidance, in the form of opinion letters, to employers and employees. The opinion letters issued by the WHD addressed the application of the Fair Labor Standards Act (FLSA), the Davis-Bacon Act (DBA), and the Walsh-Healy Public Contracts Act (PCA) to specific fact patterns. Employers who relied on an opinion letter were provided with a good-faith reliance defense to certain claims under the FLSA, DBA, and PCA. In 2010, the WHD announced that it would no longer issue opinion letters, opting instead to issue Administrator Interpretations. The Administrator Interpretations were described by the WHD as general interpretations of the law not applicable to particular fact patterns.

On June 27, 2017, U.S. Secretary of Labor Alexander Acosta announced that the WHD will reinstate the issuance of opinion letters. In connection with the announcement, Secretary Acosta stated, “Reinstating opinion letters will benefit employees and employers as they provide a means by which both can develop a clearer understanding of the Fair Labor Standards Act and other statutes. The U.S. Department of Labor is committed to helping employers and employees clearly understand their labor responsibilities so employers can concentrate on doing what they do best: growing their businesses and creating jobs.” It’s clear that this action is part of the new Secretary’s philosophy of helping employers understand and comply with the laws enforced by the Department of Labor (DOL). The DOL has set up a website through which employees and employers may learn how to request an opinion letter.

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. Accessing this blog and reading its content does not create an attorney-client relationship with the author or with Miles & Stockbridge. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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