Tag Archives: Exemptions

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

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

Texas AFL-CIO Files Motion to Intervene in DOL Final Rule Lawsuit, Citing Trump Administration’s Anticipated Change of Course

The Texas AFL-CIO recently filed a motion to intervene as a defendant in the action filed against the Department of Labor (DOL) regarding its highly publicized regulation expanding overtime coverage. Fearing the DOL under President-Elect Donald Trump might abandon its appeal to the Fifth Circuit of a nationwide preliminary injunction issued by a Texas District … Continue Reading

DOL Appeals Preliminary Injunction Ruling to Fifth Circuit

On December 1, 2016, the Department of Labor appealed the district court’s preliminary injunction ruling.  It is expected that the DOL will request the Fifth Circuit to rule on the appeal quickly, but the Fifth Circuit may not grant this request, and the appeal may not be resolved prior to January 20, 2017.  If the … Continue Reading

Legislation To Delay Overtime Rule Passed By The House Of Representatives

The U.S. House of Representatives yesterday voted 246 to 177, largely along party lines, in favor of legislation which would delay the rule’s effective date by six months, from December 1, 2016, to June 1, 2017.  Prior to the anticipated late night vote on the bill in the House, Senator James Lankford (R-Okla.) introduced the legislation … Continue Reading

Legislation Introduced To Delay Overtime Rule

Following a pair of lawsuits aimed at blocking the Labor Department’s “white collar” overtime rule, House Subcommittee on Workforce Protections Chair Tim Walberg (R-Michigan) introduced legislation which would delay the rule’s effective date by six months, from December 1, 2016, to June 1, 2017.  The proposed legislation, entitled The Regulatory Relief for Small Businesses, Schools, and … Continue Reading

An Open Letter to the Department of Labor Concerning The Proposed Changes To Exemptions for White Collar Regulations

As employers prepare themselves for potentially unwelcome proposed revisions to the white collar regulations that are expected to pose operational, business and compliance challenges, we offer the following five suggestions to the Department for the purpose of assisting the agency with simplifying and streamlining the regulations consistent with the President’s directive: Address holistically the exempt … Continue Reading

USDOL Blog Post Signals Proposed Overtime Rules Will Narrow Exemptions

Despite the enumerated twin goals to “update” and “simplify” the overtime regulations governing exempt status identified in the President’s original 2014 directive to the Department of Labor, a new blog post from Secretary of Labor Thomas Perez indicates that the proposed rule now submitted to the Office of Management and Budget will focus on narrowing … Continue Reading

Joining Second Circuit, First Circuit Rejects Highly Compensated Workers’ Challenge to Salary Basis Test

The “highly compensated” regulation is designed to relax the exempt status tests for the white collar exemptions for individuals who make more than $100,000 per year in total compensation.  29 C.F.R. § 541.601(a).  Nevertheless, challenges to exempt classification of such workers can arise, with the employee claiming he or she still was non-exempt based on … Continue Reading

Restaurant General Manager Is Exempt Administrative Employee Based on Managerial Duties

A recent federal court decision reiterates that an employee whose primary duties are managerial in nature who wields discretion and independent judgment to make employment and business decisions qualifies for the administrative exemption under the Fair Labor Standards Act and New York Labor Law, in addition to eligibility for the “executive” exemption commonly applied to … Continue Reading

FLSA Coverage Extends to Majority of Home Care Workers

The Department of Labor continues carrying out its aggressive regulatory agenda, releasing the much-anticipated final rule extending FLSA minimum wage and overtime protection to direct care workers such as home health aides, personal care aides and certified nursing assistants working for home care agencies and other domestic services employers, and reversing the application of the … Continue Reading

Eighth Circuit: Vehicle Weight of “Motor Carrier” Determined By Manufacturer Ratings, Not Actual Weight

Of the FLSA’s many highly technical exemptions from overtime, one that can require a detailed regulatory and factual analysis to properly apply, is the motor carrier exemption. In a new decision highlighting one of technical aspects of the exemption, the United States Court of Appeals for the Eighth Circuit ruled that the proper measure of a … Continue Reading

Eleventh Circuit Finds Non-Executive “Manager” Is Exempt Administrative Employee

An employee holding a position involving some degree of managerial authority but not enough to qualify for the executive exemption, is sometimes classified as exempt under the administrative exemption. This classification is premised on, among other duties, these individuals making decisions concerning workflow, prioritizing tasks, and communicating with customers.  The Court of Appeals for the … Continue Reading

Fifth Circuit Upholds Outside Sales Classification

The FLSA’s “outside sales” exemption from minimum wage and overtime is among the more straightforward exemptions, in that it contains only two requirements: that the employee be “customarily and regularly” away from the employer’s place of business; and that the employee primarily be engaged in making sales. This simple-sounding test does not preclude disputes regarding its … Continue Reading

D.C. Circuit Strikes Down 2010 USDOL Administrator’s Interpretation Regarding FLSA Status of Loan Officers

In 2010, the Department of Labor announced it would cease its “opinion letter” practice, wherein employers could submit written questions regarding application of the FLSA and its implementing regulations, and receive guidance. Replacing the opinion letter structure were “administrator interpretations,” wherein the Department would simply issue an advisory opinion on its own volition.  Contemporaneous with announcing … Continue Reading

California Federal Court Finds Healthcare IT Worker Exempt From Overtime Pay Under Computer Professional Exemption

Changes in technology and technology-related jobs occur at warp-speed; the law, however, moves slowly. For this reason, regulations regarding exempt status of workers are sometimes drafted with broad language to capture future changes in duties and positions not in existence at the time the regulations are implemented.  Regulations regarding the exempt status of computer professional employees are … Continue Reading

Appellate Court Rejects Argument That Payment of Supplemental Compensation Defeats Salary Basis

Exempt status under the FLSA often requires payment of a fixed salary on the salary basis discussed in the DOL regulations. 29 C.F.R. § 541.602. An employee classified as exempt sometimes asserts that receipt of supplemental compensation beyond the fixed salary renders him a non-exempt employee. Courts, however, have rejected this argument, requiring only payment of the fixed … Continue Reading

Wage-Hour Picture Study of the Week: The “Crunch ‘n Munch Guy”

Dedicated wage-and-hour practitioners, like many attorneys, will often find wage-and-hour issues to analyze in everyday life. Take, for example, this recent article regarding former Fenway Park fixture and local legend the “Crunch ‘n Munch” guy. The article, in addition to providing the back story behind his meteoric rise to local sports stardom (and drastically increased compensation), mentions … Continue Reading

Specialty Importer’s Orders of Foreign Baked Goods From Overseas Were In The Stream of Commerce, Qualifying Delivery Employees For Motor Carrier Status

The highly technical application of the motor carrier exemption to the FLSA’s overtime payment requirement often requires an analysis of the goods being transported by the purported motor carrier. If the goods in question are still traveling in the “continuous stream of interstate travel,” triggering Department of Transportation jurisdiction over the motor carrier, the exemption may … Continue Reading

Alabama Federal Judge and Jury: Suspensions of City Employees Did Not Destroy Salary Basis

Among the most straight-forward components of the FLSA exemption analysis is the salary basis test, which requires that employees exempted pursuant to the “white collar exemptions” generally receive a fixed salary  of at least $455a week (higher under many state laws). At times, however, challenges arise based on certain deductions from the salary paid to such … Continue Reading

Eleventh Circuit Addresses Undocumented Workers Right to Unpaid Wages Under FLSA and Calculation of Overtime Owed to Salaried Workers

The Eleventh Circuit has found that an individual who is not authorized to work in the United States can recover alleged unpaid wages under the FLSA, rejecting an employer’s argument that Supreme Court’s decision in Quality Inn in Hoffman Plastic Compounds, Inc. v. NLRB, 535 U.S. 137 (2002), bars such claims. In so holding, the … Continue Reading

City Clerk Not Member of Elected Official’s “Personal Staff”, Not Exempt from FLSA

While rules governing compensation of public sector employees can differ from the private sector (and be more expansive), the general overtime provisions of the Fair Labor Standards Act applies to public sector employees since the Supreme Court’s seminal decision in Garcia v. San Antonio Metro. Transit Auth., 469 U.S. 528 (U.S. 1985).  Excluded, however, from … Continue Reading

Mississippi Court Finds Question of Fact as to “Vehicle” Status of Mobile Homes

One of the industry-specific overtime exemptions contained in 29 U.S.C. § 213(b) is the exemption from overtime applicable to sales employees engaged in selling “trailers, boats, or aircraft, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling trailers, boats, or aircraft to ultimate purchasers.”  Judge Carlton W. Reeves of … Continue Reading
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