January, 2010

Agency Roundup

This occasional feature appears in the newsletters that accompany supplements to the Pension Plan Fix-It Handbook. It highlights the activities of the federal agencies that regulate the U. S. pension system that are of the most interest and relevance to plan sponsors and administrators.

Final Regs for Defined Benefit Funding and Benefit Restrictions Require Plan Action

In October, the IRS published final regulations under Code Sections 430 and 436 in the Federal Register relating to single-employer defined benefit (DB) funding rules and benefit restrictions on underfunded plans.

‘Half-Time’ Method of Calculating Overtime May Not Be Applied Retroactively

An employer may not retroactively apply the “half-time” method of calculating overtime owed to workers who were wrongly classified as exempt under the Fair Labor Standards Act, a federal court has ruled.

DOL to Propose Rules Including Stricter FLSA Recordkeeping and Child Labor Requirements

The U. S. Department of Labor next year will propose new regulations that would update the Fair Labor Standards Act’s recordkeeping requirements by requiring employers to notify employees how each of their paychecks was calculated, Secretary of Labor Hilda Solis announced Dec.

‘Reasonable Agreement’ With K-9 Police Officer Shielded Employer Against Overtime Lawsuit

Police departments may limit costs and minimize the risk of claims for unpaid overtime by reaching a “reasonable agreement” with K-9 officers for the compensation of off-duty time spent caring for police dogs, as a recent district court ruling shows.

For Professional Exemption, It’s Not Only the Depth Of Knowledge, But How It’s Acquired, That Counts

An employee has 20 years’ experience in the engineering field working as a draftsman, detailer and designer. He lacks a college diploma, but his work designing hydraulic power units requires “depth of knowledge and experience” and entails “considerable responsibility and discretion.

Importance of Duties, Not Time Spent, Key to Classifying Assistant Managers

To qualify as an executive exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act, a manager does not have to spend the majority of his or her time managing. Attorney Shlomo D.

What Bills Are Pending in Congress on the Wage and Hour Front?

Every year, bills are introduced in Congress to amend the Fair Labor Standards Act (FLSA). Some bills, of course, have a better chance of passing, or even getting out of committee, than others. Nonetheless, it’s interesting to see what kinds of issues surface on Capitol Hill since any one of these may get sufficient traction to become law some day.

Proposed Guidance Will Require Pa. Employers to Defend Criminal Conviction Policies

When investigating complaints that an employer's criminal conviction policy has a disparate impact against African America and Hispanic applicants, the Pennsylvania Human Relations Commission (PHRC) will apply a rebuttable presumption of discrimination, under recently proposed PHRC guidance.

Retaliation Costs Adult Novelties Company $500,000 in Punitive Damages

A former employee of a Highstown, N. J. adult novelties company is entitled to $500,000 in punitive damages because she was fired after complaining of sexual harassment on the job, a New Jersey jury ordered on Jan.