Management Update
Volume 2, Issue 12
December 2013

Flexible Spending Accounts' 'Use-It-Or-Lose-It' Rule Amended
On October 31, 2013, the IRS relaxed the use-it-or-lose-it rules applicable to flexible spending accounts to allow participants to carry over up to $500 into the following plan year. This change is effective immediately, so participants can amend their 2013 plans. There have been no other changes to the plan.
Exercise Caution When Granting Year-End Bonuses

The Fair Labor Standards Act requires that non-exempt employees be paid at least one and one-half times their "regular rate" of pay for all hours worked in a workweek in excess of forty. Whether or not bonuses are included when making the overtime calculation can be a complicated and costly issue. Generally, bonuses are excludable from the regular rate only if the bonus fits into a specific statutory exclusion. The FLSA requires that all of the following elements be met in order for a bonus to not be included in the employee's regular rate:

  1. The employer must retain discretion as to whether the payment will be made;
  2. The employer must retain discretion as to the amount of the payment;
  3. The employer must retain discretion as to the payment of the bonus until near the end of the period which it covers; and
  4. The bonus must not be paid pursuant to any prior contract, agreement or promise causing the employee to expect such bonus payments.
To read the full article, by BSW partner Jerry "Jay" Stovall, Jr., visit here.
Remote Access and Overtime?
While technology has made most of our lives easier, complying with Wage and Hour law issues has become more complicated. If non-exempt workers have company-issued cell phones, they access work email through their own devices, or they have been given remote access to the document management system, are you compensating them for work done off the clock?

Non-exempt employees must be paid overtime for any time worked over 40 hours per week, regardless of where it is performed. Even if a company has a policy prohibiting work after hours, it may still be liable to pay employees for such work if it fails to enforce this policy.

Companies should review remote time policies thoroughly. Make sure all off-the-clock times is put back ON-the-clock. Consider adding "mobile time" as a separate line item in your time reporting system. Consider not giving non-exempt employees access to work e-mail and document systems.
BSW Recognized
U.S. News & World Report and Best Lawyers, for the fourth consecutive year, announced the 2014 "Best Law Firms" rankings. Breazeale, Sachse & Wilson were ranked in 23 areas including both Employment Law and Labor Law. The full firm listing is available at:
Breazeale, Sachse & Wilson, L.L.P. Labor and Employment Attorneys
John T. Andrishok 


Murphy J. Foster, III


Leo C. Hamilton


Joseph R. Hugg



Rachael Jeanfreau


Steven B. Loeb


Eve B. Masinter


Yvonne R. Olinde


E. Fredrick Preis, Jr.


Jacob E. Roussel


Melissa M. Shirley


Jennifer D. Sims

Jerry L. Stovall





This electronic newsletter is provided to clients and friends of Breazeale, Sachse & Wilson, L.L.P. The information described is general in nature, and may not apply to your specific situation. Legal advice should be sought before taking action based on the information discussed. Applicable State Bar or Attorney Regulations May Require This Be Labeled as "Advertising."Anchor1