New England Biz Law Update
The U.S. Department of Labor has issued two new opinion letters clarifying when overtime pay is required under the Fair Labor Standards Act (FLSA).
One addresses how hours must be combined for employees working across two related entities, known as joint employers. The other addresses whether emergency pay for first responders must be included in overtime calculations.
In the first letter (FLSA-2025-5), the Wage and Hour Division determined that an employee who works at both a hotel restaurant and a private club – two entities with separate business identities but shared resources and menu offerings – should be treated as jointly employed.
That means the hours worked across both roles must be combined when determining overtime eligibility.
The second letter (FLSA-2025-6) focuses on public safety employees, such as paramedics or firefighters, who receive emergency pay for working during declared disasters or other emergencies.
The DOL clarified that this type of compensation must be included in the employee’s regular rate of pay for overtime purposes. It cannot be excluded under statutory exceptions for bonuses or premiums.
The issuance of these letters reflects the DOL’s renewed use of opinion letters as a form of agency guidance, after a period of rollback under prior administrations. While nonbinding, such letters carry persuasive weight and signal how the DOL may interpret or enforce wage laws in future audits or investigations.
As a result of these letters, employers – especially in hospitality, public safety, and multi-entity operations – should review how they assign work and calculate overtime across units.
