On January 15, 2021, the DOL published three new opinion letters that provide compliance assistance related to the Fair Labor Standards Act (FLSA).

 

The first opinion letter addressed a question about the establishment requirement and if using an accrual method of accounting was appropriate in satisfying the receipts test.


Opinion Letter:  FLSA2021-3


Opinion

Based on the facts provided and listed within the link above, the Department of Labor (DOL) concluded that, in order to qualify for the exemption requested, an entity must have a physical location that it uses in some way, shape or form for the activities that make up the amusement or recreational character. Also, regarding the receipts test, an employer must count all payments for goods and services received during the month in which they were received and that count cannot include charitable donations.

 

This is the reason for the conclusion reached.


Read the second DOL Opinion Letter put out on this date about Can a Restaurant Institute a Tip Pool.


Here is the third DOL Opinion Letter, Properly Calculating Overtime for Tipped Employees and Automatic Gratuities or Service Charges.


To review all our complied DOL Opinion Letters, click here.


For more information or further guidance, please contact SimcoHR.


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