Human Resources & Labor

On January 5, 2018, the U.S. Department of Labor (DOL) reissued 17 previously withdrawn opinion letters addressing a wide range of topics under the Fair Labor Standards Act (FLSA). 15 of the 17 letters were originally signed off on during the final days of the Bush administration, but were withdrawn by the Obama administration “for further consideration by the Wage and Hour Division” on March 2, 2009, and stated that it would “provide a further response in the near future,” but never did. Instead, the Obama administration stopped issuing these letters altogether, instead releasing broader “Administrator’s Interpretations” that laid out how the department viewed employers’ specific obligations under the law. In June 2017, Secretary Acosta announced that he would reinstate the practice of issuing opinion letters.

On Dec. 19, 2017, the U.S. Court of Appeals for the Ninth Circuit became the fourth federal appellate court to expressly reject the U.S. Department of Labor’s (DOL) six-part test for determining whether interns and students are employees under the Fair Labor Standards Act (FLSA). On January 5, 2018, the DOL clarified that going forward, the Department will conform to these appellate court rulings by using the same “primary beneficiary” test that these courts use to determine whether interns are employees under the FLSA.

On December 14, 2017, in a 3-2 decision by its then Republican majority, the National Labor Relations Board (NLRB) in the Hy-Brand Industrial Contractors case ruled that, to be classified a "joint employer" of another company’s employees under the National Labor Relations Act, a business must have a direct and immediate control over the employees. The decision overturns the Obama Board’s highly controversial and AGC-opposed 2015 ruling in Browning-Ferris Industries and  effectively returns the joint employment standard to the prior standard.

Operating Engineers Local 18 has lost another battle in its war to regain jurisdiction over operation of forklifts and skid steers, this time in circuit court.  The U.S. Court of Appeals for the Sixth Circuit (KY, MI, OH, TN) on October 31 upheld decisions by the National Labor Relations Board (“NLRB” or “Board”) that members of the Laborers were entitled to the work and ordering Local 18 to cease striking, threatening to strike, and maintaining grievances against the employers involved.