Archives: Exemptions

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Supreme Court Grants Certiorari (Again) to Address Circuit Split on FLSA Automobile Dealer Exemption

After effectively “punting” on the issue last year, the U.S. Supreme Court has again granted certiorari to resolve a circuit split regarding whether “service advisors” at automobile dealerships are exempt from receiving overtime under an exemption for “salesmen, partsmen, and mechanics” under the FLSA.  Encino Motorcars, LLC v. Navarro, No. 16-1362 (U.S. Sep. 28, 2017).  … Continue Reading

Fifth Circuit Grants Request to Delay Appeal on Federal Overtime Rule

The appeal regarding the validity of the federal overtime rule will not be fully briefed until May 1, 2017, according to an order issued by the Fifth Circuit on February 22, 2017, granting an unopposed request by the Department of Justice for an extension. When the Department of Labor first appealed the nationwide injunction issued … Continue Reading

Fifth Circuit Grants Government Request for Additional Time to State Position on Overtime Rule

Before the election the Department of Labor asked the Fifth Circuit Court of Appeals to expedite its appeal regarding the validity of the DOL’s Final Rule, which increased the salary level for the white collar exemptions.  Earlier this week, however, following the inauguration of President Trump, the Department of Labor made the opposite request, asking … Continue Reading

DOL Requests Additional Time to “Consider Issues” Before Filing Reply In Support of Salary Basis Rule

Earlier today, the Department of Labor filed an unopposed motion to extend the deadline for its next submission in support of its appeal of the salary basis rule injunction.  The motion for extension requested until March 2, 2017 to submit the Department’s reply brief to the Fifth Circuit, and expressly stated that the extra time … Continue Reading

State Plaintiffs Urge Fifth Circuit to Affirm Nationwide Injunction Blocking DOL Overtime Rule

In the latest round in the litigation between 21 States, led by the State of Nevada, and the Department of Labor regarding the Final Rule, the State Plaintiffs filed their appeal brief today with the Fifth Circuit, urging the Court to affirm the district court’s order, which issued a nationwide injunction blocking the rule.  “As … Continue Reading

Sen. Sanders, Other Members of Congress, File Amicus Brief in Support of DOL Salary Basis Regulation

Sen. Bernie Sanders, along with twenty-five other members of Congress, have filed an amicus brief in the Fifth Circuit Court of Appeals urging the Court to reverse the injunction issued by a Texas federal judge enjoining enforcement of the Department of Labor’s recent increase to the salary basis threshold for the white collar exemptions under … Continue Reading

DOL Requests Expedited Ruling on Appeal of Preliminary Injunction, But Appeal Will Not Be Decided Before Trump Administration Under Proposed Schedule

On December 2, one day after filing its appeal of the preliminary injunction blocking its new salary basis regulations, the DOL filed a request for expedited briefing and oral argument in the appeal.  The DOL has requested that the Fifth Circuit Court of Appeals set an expedited schedule whereby briefing would be complete on February … Continue Reading

Did the DOL Salary Basis Regulations Just Get Trumped?

Jackson Lewis Principal Eric Magnus contributed to this post. The U.S. Department of Labor regulations raising the required salary level for the white collar exemptions (executive, administrative, and professional) under the Fair Labor Standards Act are scheduled to become effective December 1, 2016.  Since the results of Tuesday’s election, some employers are considering whether to … Continue Reading

Congress Approves Puerto Rico’s Reprieve From Salary Basis Increase

As discussed in detail here, the Senate has approved the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”).  Among other provisions, PROMESA stays applicability of the new salary basis rule to Puerto Rico until the Comptroller General of the United States further analyzes the economic impact of such application, and the Secretary of Labor (taking the … Continue Reading

ESL Teachers At Private Learning Center FLSA “Teachers” Exempt from Overtime

Earlier this week, in a matter of first impression within the Second Circuit, Judge P. Kevin Castel of the Southern District of New York held that employees who teach English as a second language (“ESL”) at a privately-owned ESL learning center qualify for the professional exemption under the FLSA as “teachers.”  Fernandez v. Zoni Language … Continue Reading

DOL Announces Salary Threshold

News outlets are reporting that the new salary basis rule will take effect on December 1, 2016, and require a salary of $47,476 per year ($913/week).  Reports also indicate that the new rule will require an update of the salary threshold every three years, as opposed to annual increases.  This effective date provides employers a … Continue Reading

DOL Expected To Issue Final Regulation Regarding Overtime Exemptions On Wednesday

The Department of Labor is expected to issue its long-awaited Final Rule regarding the white collar exemptions on Wednesday, at an event in Ohio attended by Vice President Biden and Secretary Perez, Politico reports.  It is expected the Final Rule will increase the salary level requirement for white collar exemptions to approximately $47,000, and provide … Continue Reading

Wynn Marketing Executive Host Is Exempt Administrative Employee Due To Exercise of Discretion

Earlier this week, the U.S. Court of Appeals for the Ninth Circuit issued an unpublished decision affirming summary judgment in favor of Wynn Las Vegas with respect to overtime claims asserted by a Slot Marketing Executive Host.  Dannenbring v. Wynn Las Vegas, LLC, 2016 U.S. App. LEXIS 5715 (9th Cir. Nev. Mar. 28, 2016). Concluding … Continue Reading

New Jersey Court: Meal Preparation, Other Tasks Properly Part of “Companion” Duties Under Old Test

In 2013 the Department of Labor announced new regulatory language that substantially limited the scope of the Fair Labor Standards Act’s companionship exemption. Those regulations, of course, were challenged through litigation which remains ongoing, and their implementation by the USDOL was delayed until many months after the original effective date of January 1, 2015. Though … Continue Reading

SCOTUS to Resolve Circuit Split Regarding Whether “Service Advisors” Are Exempt From Overtime and Consider Deference Owed to USDOL

On Friday, the United States Supreme Court agreed to resolve the current split among the Circuit Courts regarding whether “service advisors” are exempt from overtime under the 213(b)(10) exemption, an exemption applicable to any “salesman, partsman, or mechanic” who is primarily engaged in “selling or servicing automobiles.” Both the Fourth and Fifth Circuits have held … Continue Reading

Caretakers’ Own Homes Were “Private Homes,” Rendering Them Exempt Companions

Though the USDOL’s new rule regarding overtime-eligibility for home care workers is currently in force, pending appeal, litigation continues over the prior rule. A new appellate ruling addresses the scope of the term “private home” for purposes of the prior rule, clarifying that the former exemption applies to caregiver work in the private homes of … Continue Reading

Contract Attorney “Practiced Law,” Not Entitled To Overtime

In the latest chapter in the ongoing saga regarding contract attorneys claiming to be overtime eligible, Judge Ronnie Abrams of the Southern District of New York ruled that a contract attorney reviewing documents for litigation firm Quinn Emanuel was “practicing law” and thus exempt from overtime pursuant to 29 C.F.R. § 541.304(a)(1). Henig v. Quinn … Continue Reading

Ohio Federal Court Rules Home Care Agency Not Required To Pay Overtime To “Companions” During Temporary Vacatur Of New Federal Rules

Providing much needed guidance to industry employers still wrestling with fallout from the United States Department of Labor’s drastic reduction to the scope of the companionship exemption, District Court Judge Sandra S. Beckwith held this week that a home care agency properly relied on the temporary vacatur of the DOL’s new federal regulations in electing … Continue Reading

Ohio Federal Court Rejects Challenge to Application of Companionship Exemption to Home Health Aide

Last week, an Ohio, a federal judge held that a home health aide failed to demonstrate that she performed general housework unrelated to the care of her patients, and therefore qualified as a provider of companionship services under the Fair Labor Standards Act’s previous formulation of the “companion” exemption. As such, the home health aide … Continue Reading

When Will The DOL Issue Final Regulations Increasing The Salary Basis Threshold?

Since the United States Department of Labor announced its intention, in response to the President’s directive, to more than double the salary basis necessary to qualify for the “white collar” exemptions from overtime, the business community has swung into action. Employers and associations have both been lobbying for a more modest increase to the minimum … Continue Reading

Home Care Fallout: Increased Institutionalization?

Five days into the DOL’s enforcement of the new rule rendering most home health aides eligible for overtime under the FLSA, questions abound regarding how state Medicaid and Medicare-funded programs will comply with the rule within their current budgets.  One new report cautions consumers of home health care and their advocates to be aware of … Continue Reading

DOL Enforcement of Home Care Rule to Commence November 12, Subject to “Prosecutorial Discretion”

Chief Justice Roberts’ denial of the Home Care Association of America’s request for stay of issuance of mandate confirms that the new rule rendering many home health aides overtime-eligible is effective, pending appeal. In response to that denial, Wage-and-Hour Administrator David Weil issued a new policy statement confirming that the Department’s “non-enforcement period” for the new rule will end on November … Continue Reading

Trauma Registrar Properly Classified As Exempt Administrative Employee Due To Exercise Of Discretion

Rejecting a claim that the position lacked “discretion and independent judgment,” an Indiana Federal Court recently found a trauma registrar for a Level III Trauma Center to be an exempt administrative employee. Brown v. Ind. Univ. Health Ball Mem’l Hosp., 2015 U.S. Dist. LEXIS 141921 (S.D. Ind. Oct. 19, 2015). In Brown, plaintiff was a … Continue Reading

Federal Court Finds Intrastate Travel Part of “Stream of Commerce,” Applies Motor Carrier Exemption to Truck Driver

Although applicability of the Motor Carrier Act (MCA) exemption from overtime is predicated on “interstate commerce,” interstate commerce can include wholly intrastate travel by a covered employee when shipped in a “practical continuity of movement” across state lines. A new opinion highlights this doctrine. Kennedy v. Equity Transp. Co., 2015 U.S. Dist. LEXIS 143565 (N.D.N.Y … Continue Reading
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