FOOTNOTES 1 The FLSA covers most private (and public sector) employees and employers. 29 C.F.R. §778.200. There are two types of coverage: enterprise coverage (businesses or organizations engaged in commerce Debra A. Mastrian Partner Amundsen Davis LLC DMastrian@AmundsenDavisLaw.com Debbie grew up watching her father practice law and seeing him help people resolve their problems inspired her to become a lawyer. With a focus on employment litigation and counseling, Debbie’s practice includes defending employers against discrimination claims, wage and hour violations, retaliation claims, unfair competition and FLSA collective actions. She also handles a wide range of business litigation matters. Amundsen Davis LLC is a Diamond Associate Member of the Indiana Bankers Association. Lake City Bank Welcomes Summer Intern Class of 2024 Lake City Bank, Warsaw, welcomed its summer intern class of 2024 in June, providing the opportunity for 17 students to gain real-world experience and explore careers in banking. This year’s interns represent a local high school and regional post-secondary schools including Purdue University, Purdue University-Fort Wayne, Indiana University, Indiana University-Indianapolis, Ball State University, Carthage College, Huntington University, Kentucky Wesleyan College and Northridge High School. Year 2024 summer interns at Lake City Bank ranged from a high school student to college seniors, including three students returning for their second summer. INDIANA ECONOMIC OUTLOOK LUNCHEON Learn about what to expect in Indiana’s economic landscape for 2025. Save the date, and register soon at indiana.bank/calendar. DEC. 6 Carmel or production of goods for commerce with at least $500,000 of commercial sales or business done and have two or more employees) or individual coverage (if the employer is not a covered enterprise but the individual is regularly involved in interstate commerce – for example, producing or assembling goods that are sent out of state, traveling out of state for their job, regularly making business calls or sending/receiving emails to persons in other states, ordering or receiving goods from an out-of-state supplier). A business may also be a “named enterprise” (e.g., hospitals, schools, nursing homes and government agencies) and are covered employers regardless of the volume of their business. 2 29 U.S.C. §207(a)(1). State wage and hour laws may be different than federal law. Indiana follows the FLSA 40-hour rule. Other states have their own minimum wage and overtime laws or standards that expand the protections/requirements provided by the FLSA. For example, some states have daily overtime requirements (if an employee works more than a certain number of hours in a workday, they may be entitled to overtime). If a business has employees in other states (including remote employees), it is important to know and comply with those state laws. The application of the FLSA may also be affected by labor agreements. 3 The FLSA also has exemptions for “outside sales,” “inside sales” and “highly compensated” employees. 4 The DOL issued a final rule effective July 1, 2024, that raised the salary level for the salary basis test to $844 per week ($43,888 annually). The level increases on Jan. 1, 2025, to $1,128 per week ($58,656 annually), with automatic increases every three years thereafter. 29 C.F.R. §541. Lawsuits were filed in federal court in Texas, challenging the implementation of that rule. Rulings are expected before Jan. 1, 2025. 5 Wage claims under the FLSA are difficult, in part because employers face “strict liability” for violations, meaning no defense for honest or unintentional mistakes. Good faith can be a defense to avoid certain penalties, such as liquidated damages, but it is not a defense to the underlying wage, back pay and attorneys’ fees awarded under the statute. SEPTEMBER/OCTOBER 2024 43
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