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Back in May, I wrote about the Department of Labor’s new regulations under the Fair Labor Standards Act (FLSA) significantly increasing the salary thresholds for an employee to be exempt from overtime pay requirements.  The reason for writing about it in CommLawCenter is that media businesses rarely operate on a 9am-to-5pm schedule, and have many employees whose salaries fall within the range affected by these changes.

While there are several components to the test for determining if an employee is exempt from overtime pay requirements, the increasingly dominant part of the test is the minimum salary an employee must make to be deemed exempt.  Prior to the Department of Labor’s changes this Spring, an employee had to be paid at least $684 per week ($35,568 annually) to qualify as exempt.  The new rules increased that threshold to $844 per week ($43,888 annually) as of July 1, 2024, and would have further increased the threshold to $1,128 per week ($58,656 annually) on January 1, 2025, with that threshold then being adjusted in 2027 and every three years therafter based on updated earnings data.

That all changed this past Friday with a ruling by a federal judge in Texas, who vacated the new rule, finding that the Department of Labor had exceeded its congressional authority by increasing the salary threshold to such a degree that it effectively displaced the “duties test” portion of the FLSA, which focuses on the nature of work the employee performs.  In other words, if a salaried employee is performing “white collar” duties that have traditionally been exempt from overtime requirements under the FLSA, the Department of Labor can’t just increase the salary threshold part of the test to such a degree that it greatly expands the pool of employees eligible for overtime pay under the statute.

The judge also held that the rule’s automatic future increases in the threshold violated the Administrative Procedure Act by abdicating the Deparatment of Labor’s responsibility for “defining and delimiting” the threshold in a rulemaking based upon then-current facts, essentially leaving that decision-making process on “autopilot” instead.

Though the decision will likely be appealed, the now-reinstated $684 per week threshold was adopted under the prior Trump administration, and the Department of Labor under the incoming Trump administration may have no appetite for continuing that appeal.  In the absence of a reversal on appeal, the future increases in the threshold will not occur, and the July 1, 2024 increase in the threshold has been retroactively vacated.  This puts employers in the awkward position of deciding whether to “undo” changes in employee pay that were implemented to comply with the July 1 threshold increase.  That is less of an issue in some states that already impose their own overtime salary thresholds that are higher than the federal threshold.

While media employees that were becoming eligible for overtime pay might not be as happy with the judge’s ruling as their employers, there was a fear that the substantial increase in the threshold that was coming on January 1 was only going to accelerate the pace of layoffs in the media industry, so there is some silver lining for employees as well.  A common strategy many businesses adopted in response to earlier increases in the threshold was to simply raise one employee’s salary to meet the new threshold to be exempt from overtime pay requirements, and then tell that employee they were going to have to take on the work of other employees so that those other employees would never need to work overtime hours.  It is a solution that left pretty much no one happy, so both employers and employees who were dreading what was to come on January 1 can now focus on enjoying the holiday season instead.

 

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December 1 is the deadline for broadcast stations licensed to communities in Alabama, Colorado, Connecticut, Georgia, Maine, Massachusetts, Minnesota, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota, and Vermont to place their Annual EEO Public File Report in their Public Inspection File and post the report on their station website.

Under the FCC’s EEO Rule, all radio and television station employment units (“SEUs”), regardless of staff size, must afford equal opportunity to all qualified persons and practice nondiscrimination in employment.

In addition, those SEUs with five or more full-time employees (“Nonexempt SEUs”) must also comply with the FCC’s three-prong outreach requirements.  Specifically, Nonexempt SEUs must (i) broadly and inclusively disseminate information about every full-time job opening, except in exigent circumstances, (ii) send notifications of full-time job vacancies to referral organizations that have requested such notification, and (iii) earn a certain minimum number of EEO credits based on participation in various non-vacancy-specific outreach initiatives (“Menu Options”) suggested by the FCC, during each of the two-year segments (four segments total) that comprise a station’s eight-year license term.  These Menu Option initiatives include, for example, sponsoring job fairs, participating in job fairs, and having an internship program.

Nonexempt SEUs must prepare and place their Annual EEO Public File Report in the Public Inspection Files and on the websites of all stations comprising the SEU (if they have a website) by the anniversary date of the filing deadline for that station’s license renewal application.  The Annual EEO Public File Report summarizes the SEU’s EEO activities during the previous 12 months, and the licensee must maintain adequate records to document those activities.

For a detailed description of the EEO Rule and practical assistance in preparing a compliance plan, broadcasters should consult The FCC’s Equal Employment Opportunity Rules and Policies – A Guide for Broadcasters published by Pillsbury’s Communications Practice Group.

Deadline for the Annual EEO Public File Report for Nonexempt Radio and Television SEUs

Consistent with the above, December 1, 2024 is the date by which Nonexempt SEUs of radio and television stations licensed to communities in the states identified above, including Class A television stations, must (i) place their Annual EEO Public File Report in the Public Inspection Files of all stations comprising the SEU, and (ii) post the Report on the websites, if any, of those stations.  Once the new Report is posted on a station’s website, the prior year’s Report may be removed from that website. Continue reading →

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • National Cable Sports Network Draws Proposed Fine of $146,976 for Transmitting False EAS Tones
  • For-Profit Arrangement Lands Michigan Noncommercial Radio Station in Hot Regulatory Water
  • California LPFM Station Agrees to $9,000 Consent Decree for Numerous Rule Violations

FCC Proposes $146,976 Fine Against National Cable Sports Network for Transmitting False EAS Tones

The Federal Communications Commission issued a Notice of Apparent Liability for Forfeiture (NAL) to a cable sports network for violating the Commission’s Emergency Alert System (EAS) rules.  Specifically, the NAL alleged violations of Section 11.45 of the FCC’s Rules, which prohibits the transmission of false or deceptive EAS tones.

The EAS is a nationwide public warning system designed to alert the public in case of emergencies, such as severe weather warnings or AMBER alerts.  To maintain the effectiveness of such emergency alerts, EAS tones may only be aired for specific uses, such as actual emergencies, authorized tests, and qualified public service announcements (PSAs).  Section 11.45 strictly prohibits airing an EAS tone, or simulations of it, except in connection with these permitted uses.  The FCC takes false EAS tone violations particularly seriously, asserting that violations desensitize the public to legitimate EAS alerts.

In October 2023, the FCC received complaints alleging a cable network had transmitted EAS tones during a sports promotional video.  In January 2024, the Commission’s Enforcement Bureau sent a Letter of Inquiry requesting information about the incident.  The network responded, providing video recordings of the sports-related promo video that had aired for three days and admitting that it contained an EAS tone.  While the network argued the promo video contained fewer than two seconds of EAS tone, it did acknowledge that the tone was not aired in connection with an actual emergency, authorized test, qualified PSA, or other permitted use.  The network also acknowledged that the promo video aired six times over three days on two different networks.

Based on the network’s admissions and the FCC’s review of the video, the FCC found six apparent violations of Section 11.45 of the Commission’s Rules.  The FCC noted that while the two-second duration was shorter than a full EAS tone, it was long enough for viewers to recognize the sound as an EAS tone. Continue reading →

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Following the devastation wrought by Hurricane Helene across the American southeast and in anticipation of Hurricane Milton’s arrival, the FCC has announced an extension of the deadline to upload Third Quarter Issues/Programs Lists for radio and television stations in states particularly affected by Hurricane Helene (note that the Public Notice mistakenly refers to them as “first quarter” Lists) .  As discussed in our Third Quarter Issues/Programs List advisory, the Lists are due for most stations by October 10, 2024.  However, in light of the Commission’s announcement today, broadcast stations in Florida, Georgia, North Carolina, South Carolina and Tennessee now have until November 10, 2024 to upload these lists (the Public Notice actually says the October 10, 2020 deadline is extended to November 10, 2020, but the FCC’s intent is clear).

Because of Hurricane Helene, the FCC previously extended the deadline for broadcast stations nationwide (as well as all other EAS Participants) to file their Form One  in the EAS Test Reporting System.  The Form One, previously due on October 4, 2024, is now due on October 18, 2024.

In granting the latest extension only to stations in hurricane-impacted states, the FCC still encouraged those stations “to file their quarterly issues/programs lists as soon as practicable.”  The FCC also made clear that the extension “does not modify any requirements or filing deadlines related to stations’ political files, nor does it modify any other filing obligations or deadline related to broadcasters’ public files.”

Lastly, some practical advice—stations taking advantage of the Third Quarter Issues/Programs List extension should note in their upload file that they are filing after the normal deadline pursuant to an extension granted by the FCC.  When a station’s license comes up for renewal several years from now, and the licensee must certify that the Public File has been complete at all times, station employees may have forgotten why this particular filing appears to have been uploaded late.  It will be important for the station to have a contemporaneous note in the Public File explaining that the filing was not late, both to remind the licensee making its license renewal certification and to alert third parties and any FCC staff later reviewing the Public File that the List was in fact timely uploaded.

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The next Quarterly Issues/Programs List (“Quarterly List”) must be placed in stations’ Public Inspection Files by October 10, 2024, reflecting information for the months of July, August, and September 2024.

Content of the Quarterly List

The FCC requires each broadcast station to air a reasonable amount of programming responsive to significant community needs, issues, and problems as determined by the station.  The FCC gives each station the discretion to determine which issues facing the community served by the station are the most significant and how best to respond to them in the station’s overall programming.

To demonstrate a station’s compliance with this public interest obligation, the FCC requires the station to maintain and place in the Public Inspection File a Quarterly List reflecting the “station’s most significant programming treatment of community issues during the preceding three month period.”  By its use of the term “most significant,” the FCC has noted that stations are not required to list all responsive programming, but only that programming which provided the most significant treatment of the issues identified.

Given that program logs are no longer mandated by the FCC, the Quarterly Lists may be the most important evidence of a station’s compliance with its public service obligations.  The lists also provide important support for the certification of Class A television station compliance discussed below.  We therefore urge stations not to “skimp” on the Quarterly Lists, and to err on the side of over-inclusiveness.  Otherwise, stations risk a determination by the FCC that they did not adequately serve the public interest during their license term.  Stations should include in the Quarterly Lists as much issue-responsive programming as they feel is necessary to demonstrate fully their responsiveness to community needs.  Taking extra time now to provide a thorough Quarterly List will help reduce risk at license renewal time.

The FCC has repeatedly emphasized the importance of the Quarterly Lists and often brings enforcement actions against stations that do not have complete Quarterly Lists in their Public Inspection File or which have failed to timely upload such lists when due.  The FCC’s base fine for missing Quarterly Lists is $10,000.

Preparation of the Quarterly List

The Quarterly Lists are required to be placed in the Public Inspection File by January 10, April 10, July 10, and October 10 of each year.  The next Quarterly List is required to be placed in stations’ Public Inspection Files by October 10, 2024, covering the period from July 1, 2024 through September 30, 2024. Continue reading →

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • Massachusetts Man Ordered to Cease Using Interfering Home TV Antenna
  • Unauthorized Transfers of Arkansas Radio Stations Lead to $8,000 Consent Decree
  • STIR/SHAKEN Rule Violations End With $1,000,000 Consent Decree

Interference From Home TV Antenna Moves FCC to Action

The FCC’s Enforcement Bureau recently issued a Notification of Harmful Interference (Notification) directing a Massachusetts man to cease using an indoor digital TV antenna in his home.

Over a two-day period in April 2024, an agent of the FCC’s Boston field office investigated an interference complaint.  The agent determined that unauthorized radio emissions in the 813-817 MHz band were interfering with the Massachusetts State Police public safety communications system.  The agent ultimately tracked the interference to an indoor digital TV antenna located in a condominium.  His suspicions were confirmed when the interference ceased after the device was unplugged.

The Communications Act of 1934 requires devices operating on certain frequencies, including the 800 MHz band, to be licensed by the FCC.  Section 15.5(b) of the FCC’s Rules creates a limited exception to this restriction for low power devices where no harmful interference is caused.  Section 15.3(m) defines harmful interference as “[a]ny emission, radiation or induction that endangers the functioning of a radio navigation service or of other safety services or seriously degrades, obstructs or repeatedly interrupts a radiocommunications service….”

In September 2024, the Bureau sent a Notification warning to the condominium owner that the TV antenna was causing harmful interference in violation of FCC rules, and should he continue to operate it, he would be subject to severe penalties, including fines, seizure of the equipment, or even imprisonment.

The Notification directed the resident to respond to the FCC within 10 days to describe his operation of the antenna and the steps being taken to ensure no further interference is caused.  The FCC indicated it would then determine what enforcement action is warranted to ensure no future violations occur.

Unauthorized Transfers of Control of Arkansas Radio Stations Net $8,000 Consent Decree

The licensee of an AM station and three FM stations in Arkansas failed to obtain required FCC approvals before transferring the licensee’s voting stock from one trust to another, and then transferring a 50% controlling interest in the licensee from the second trust to an individual.  To resolve the investigation, the licensee entered into a Consent Decree with the FCC’s Media Bureau which required, among other things, payment of an $8,000 civil penalty. Continue reading →

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October 1 is the deadline for broadcast stations licensed to communities in Alaska, American Samoa, Florida, Guam, Hawaii, Iowa, the Mariana Islands, Missouri, Oregon, Puerto Rico, the Virgin Islands, and Washington to place their Annual EEO Public File Report in their Public Inspection File and post the report on their station website.

Under the FCC’s EEO Rule, all radio and television station employment units (“SEUs”), regardless of staff size, must afford equal opportunity to all qualified persons and practice nondiscrimination in employment.

In addition, those SEUs with five or more full-time employees (“Nonexempt SEUs”) must also comply with the FCC’s three-prong outreach requirements.  Specifically, Nonexempt SEUs must (i) broadly and inclusively disseminate information about every full-time job opening, except in exigent circumstances, (ii) send notifications of full-time job vacancies to referral organizations that have requested such notification, and (iii) earn a certain minimum number of EEO credits based on participation in various non-vacancy-specific outreach initiatives (“Menu Options”) suggested by the FCC, during each of the two-year segments (four segments total) that comprise a station’s eight-year license term.  These Menu Option initiatives include, for example, sponsoring job fairs, participating in job fairs, and having an internship program.

Nonexempt SEUs must prepare and place their Annual EEO Public File Report in the Public Inspection Files and on the websites of all stations comprising the SEU (if they have a website) by the anniversary date of the filing deadline for that station’s license renewal application.  The Annual EEO Public File Report summarizes the SEU’s EEO activities during the previous 12 months, and the licensee must maintain adequate records to document those activities.

For a detailed description of the EEO Rule and practical assistance in preparing a compliance plan, broadcasters should consult The FCC’s Equal Employment Opportunity Rules and Policies – A Guide for Broadcasters published by Pillsbury’s Communications Practice Group. Continue reading →

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The FCC’s rules require that all Emergency Alert System (EAS) Participants update their identifying information in the EAS Test Reporting System (ETRS) annually.  Accordingly, all EAS Participants must update and submit their ETRS Form One for 2024 by Friday, October 4, 2024.

For broadcasters, EAS Participants include full power radio and TV broadcast stations, low power FM stations, and Class D noncommercial educational FM stations.  Low power TV stations, unless they are operating as a TV translator station, must also submit a Form One.  Stations must file a Form One even if they are silent pursuant to a grant of Special Temporary Authority.

The following types of stations are exempt from this filing requirement:

  • TV translator stations
  • FM translator or booster stations that entirely rebroadcast the programming of a local broadcast radio station
  • Stations that operate as satellites or repeaters of a hub station (or common studio or control point if there is no hub station) and rebroadcast 100 percent of the programming of the hub station (or common studio or control point). Note that the hub station (or common studio or control point) must file a Form One.

While the FCC often ties the deadline for filing the annual Form One to the occurrence of a nationwide EAS test, the Federal Emergency Management Agency and FCC have not announced a national test this year.  As a result, the Form One must be filed independently to satisfy the annual filing obligation.  The most recent nationwide test was held October 4, 2023.  That test was largely successful, with nearly 97 percent of EAS Participants receiving the test message and about 94 percent of Participants successfully relaying the message.  These numbers represent a seven percent increase over the receipt and relay success rates reported for the 2021 test (the last nationwide test conducted prior to 2023).

Form One filers should review the FCC’s Public Notice concerning this filing requirement, as well as the FCC’s ETRS Form One Filing Guide and Frequently Asked Questions for information about using the ETRS, and consult their state’s EAS Plan before responding to the EAS operational area and monitoring assignments prompts.

Filers should be sure to have on hand the FCC username and password associated with the FCC Registration Number(s) (FRN) of the entity(ies) for which they are filing.  Users who have not previously created a username may do so by visiting the User Registration System.  Filers should visit the main ETRS page to file their Form One in advance of the October 4 deadline in case they encounter any filing portal errors and need time to resolve them before the deadline.

 

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Earlier this week, the FCC opened CORES to accept FY 2024 regulatory fee payments and announced a payment deadline of September 26, 2024.  Since that time, however, broadcasters have encountered a number of issues when trying to pay their fees.  The most common issues include:

  • Difficulty accessing the system
  • Assessment of inaccurate fees
  • Failure to assess fees for all stations associated with a licensee’s FRN
  • Stations being listed in incorrect service categories (e.g., a TV translator being listed as a full-power TV station, and vice versa)
  • Fee-exempt stations being listed as feeable

The FCC today acknowledged that incorrect population count information in particular is resulting in incorrect fee assessments for a significant number of AM and FM stations.  In response, the FCC has temporarily deactivated the fccfees.com lookup site and has also added the following notice on the CORES log-in page:

NOTICE: The FCC is continuing to do its due diligence to reevaluate the population count information for AM and FM broadcasters for FY 2024 regulatory fees. We expect to have this situation resolved early next week. In the meantime, we request that AM and FM broadcasters do not make any payments in CORES. Thank you for your patience.

Accordingly, AM and FM broadcasters should hold off on generating their fee reports or submitting regulatory fee payments to the FCC until this issue is resolved.  Other broadcasters would also be wise to pay close attention to the fees that CORES assesses for their stations to ensure that they do not under- or over-pay and that all stations are properly accounted for.  We recommend that you seek assistance from experienced FCC counsel if you encounter any of the issues listed above (or other system issues). As noted in our previous post, failure to pay in full can lead to significant interest and penalties (and efforts to recoup overpayments may be time consuming).

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Following last week’s adoption of the 2024 Regulatory Fee Report and Order, which we discussed here, the Federal Communications Commission today released its annual Public Notice setting 11:59 p.m. Eastern Time on September 26, 2024 as the payment deadline for fiscal year 2024 regulatory fees.  The FCC also opened  the online system for submitting those payments.

Note that the FCC’s old “Fee Filer” system has been retired and regulatory fees must now be paid via the FCC’s Commission Registration System (CORES).  Logging into CORES requires users to set up a personal account using an email and password of their choosing.  We have previously provided step-by-step instructions for how to do so here.  Additionally, in March 2024, CORES moved to a two-step login authentication process, whereby each time a user logs into CORES, the user will be prompted to request a six-digit verification code that will be emailed to the email address(es) associated with the username.  The user must then enter the code into CORES to finish the log-in process.

As this is still a fairly new process, we suggest logging in well before the payment deadline to ensure you are able to access the system and successfully pay your regulatory fees, as late or unpaid fees incur interest and are assessed a 25% penalty, and can put a licensee in “red light” status.  Stations that are unable to make their regulatory fee payment by the deadline or that need additional relief such as a payment plan or reduction/deferral of their fees should make those requests to the FCC as soon as possible.  The Commission released a separate Public Notice detailing the procedures to apply for such relief.