The big picture: The U.S. Department of Labor (DOL) recently published three new opinion letters clarifying federal Fair Labor Standards Act (FLSA) applications. These letters address common employer questions regarding compensable time and volunteer work.

Why it matters: These clarifications provide crucial guidance for employers, staffing firms, and HR professionals to ensure compliance and mitigate wage and hour litigation risks. Misinterpretations can lead to significant penalties.

Between the lines:

• One letter clarifies whether time spent walking to a lunch area is compensable.
• Another addresses if employees may perform additional duties as volunteers.
• The FLSA governs minimum wage, overtime pay, recordkeeping, and child labor standards.

Staffing & HR impact: Staffing agencies must update internal policies and client advisories to reflect these new interpretations, impacting payroll processing and potential gross margin calculations. HR teams need to review timekeeping practices to ensure full compliance.

The bottom line: Stay informed on DOL guidance to avoid costly wage and hour violations.