DOL: Right to Know Rule Delayed

For the past two years the DOL has discussed revising its record keeping regulations under the FLSA. The revision? Requiring employers who classify an employee as exempt to prepare a written justification for the basis for the exemption. (The justification would further provide why an individual is classified as an employee or as an independent contractor and how their pay is computed.) This justification would then have to be provided to the employee and be subject to inspection by the Department of Labor. Many employers strongly disfavor this proposal.

Acting Wage and Hour Administrator Nancy Leppink called the Right to Know rule one of the Wage and Hour Division's priorities, stating "We're continuing to work on that regulation," and that "We're learning about what the issues are" from the Department's ongoing misclassification enforcement initiative. (Recent article in BNA's Daily Labor Report.)

The DOL continues to expand the number of jurisdictions and agencies with which it is collaborating to end employee misclassification. Recently the Colorado Department of Labor and Employment and the Louisiana Workforce Commission has joined the fray.

Employers don't have to worry about this particular issue just yet. It appears the DOL does not plan to take action on its Right To Know rules at least until January 20,2013.