Archives: Exemptions

Subscribe to Exemptions RSS Feed

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

Sixth Circuit Holds That Worm Farmers Exempt from Overtime Requirements of FLSA

The Fair Labor Standards Act exempts “employee[s] employed in agriculture” from its overtime requirement. Recently, the Court of Appeals for the Sixth Circuit applied this exemption to the operations of an employer who “moved to the United States from his native France in 1992 to grow worms,” and affirmed the district court’s decision holding that … Continue Reading

On Second Thought, Court Holds Underwriters Qualify For Administrative Exemption

Applicability of the technical FLSA exemptions can sometimes turn on subtle distinctions, a frustrating proposition for FLSA litigants. A new opinion highlights these subtleties, as, on a motion for reconsideration made ahead of a bench trial, a court reversed its earlier ruling denying summary judgment to defendant bank as to the applicability of the administrative … Continue Reading

DC Circuit Upholds DOL’s End to Companionship Exemption for Third-Party Agencies

The U.S. Court of Appeals for the D.C. Circuit today ruled that the U.S. Department of Labor’s decision to  reverse its prior position and extend the FLSA’s minimum wage and overtime protections to employees of third-party agencies who provide companionship services and live-in care within a home was a reasonable interpretation of the law.  The … Continue Reading

Ninth Circuit Finds That Insurance Claims Adjusters Are Exempt Administrative Employees Under California Law

Applying California’s administrative exemption test, the U.S. Court of Appeals for the Ninth Circuit recently concluded an insurance company properly classified its claims adjusters (who handled and processed disability claims) as exempt from the overtime provisions of the California Labor Code, notwithstanding the clerical duties the adjusters performed and their characterization of their work as … Continue Reading

Second Circuit Holds That Contract Attorney Properly Alleged Misclassification Claim

Reversing Judge Richard J. Sullivan’s 2014 decision, a panel of the Court of Appeals for the Second Circuit ruled today that a contract attorney who provided document review services on a multi-district litigation for a law firm through a third party staffing firm colorably alleged an FLSA violation based on his assertion that the document … Continue Reading

Liaison Responsible for Troubleshooting Invoice Failures Exempt Administrative Employee

A Tennessee federal court recently held that a “Print and Archive Vendor Liaison” responsible for coordinating with outside vendors to print and deliver customer invoices qualified for the administrative exemption notwithstanding the employee’s inability to deviate from employer policies or budgets.  See Boaz v. Fed. Express. Corp., 2015 U.S. Dist. LEXIS 70342 (W.D. Tenn. May … Continue Reading

Preview To Exemption Regulations: White House Announces Drastic Salary Basis Increase

White House coverage reports that the revamped white collar exemption regulations will be released this week, and will include a salary basis requirement more than double the current federal level. Reports peg the new salary basis requirement at $50,440 per year, or $970/week, with future adjustment linked to the 40th percentile of income. This news … Continue Reading

Third Circuit Upholds Ruling That Low Volume Of Interstate Travel By Employees Does Not Impact Application of Motor Carrier Exemption

Affirming a ruling from the Eastern District of Pennsylvania, the Court of Appeals for the Third Circuit last week confirmed that drivers for a motor coach company remained exempt under the motor carrier exemption, notwithstanding the relatively low volume of interstate transit and related revenue generated by the company’s interstate routes. Resch v. Krapf’s Coaches, … 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

Michigan Federal Court: Staffing Company’s Account Managers, Assistant Branch Manager, and Staffing Consultants Are Exempt Administrative Employees

In Michigan, a federal judge this week held that certain employees of a staffing company – namely account managers, senior account managers, assistant branch managers, staffing consultants, and senior staffing consultants – were administrative employees under the Fair Labor Standards Act, and therefore not entitled to overtime. Perry v. Randstad Gen. Partner (US) LLC, 14 … 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

Atlanta Federal Judge Finds Office Worker Exempt Pursuant to Administrative Exemption

Employees who support businesses performing office functions are often dubbed “administrative” employees, whether for wage-and-hour purposes or otherwise. The question under the Fair Labor Standards Act is whether they are administratively exempt from overtime. Answering that question in the affirmative, Judge William S. Duffey, Jr. recently found an office worker for an electrical services firm … Continue Reading

Ninth Circuit Creates Circuit Split Regarding FLSA Classification of Sales Advisor Position

Two Circuit Courts have held service advisers are exempt “salesmen” within the meaning of 29 U.S.C. 213(b)(10). But the Ninth Circuit thinks otherwise, deferring to USDOL guidance and finding the exemption inapplicable. Navarro v. Encino Motorcars, LLC, 2015 U.S. App. LEXIS 4773 (9th Cir. Mar. 24, 2015). Encino Motorcars concerned the exemption applicable to automobile … Continue Reading

Tenth Circuit: Isolated Deduction Does Not Defeat Salary Basis For Exempt Salaried Employees

Compliance with salary basis requirements is one pre-requisite for exempt status under the FLSA’s “white collar” exemptions.   A recent decision issued by the Court of Appeals for the Tenth Circuit analyzed this requirement and upheld the employer’s salary basis of payment, rejecting the Plaintiff’s claim that an isolated deduction from an exempt employee’s salary destroys … Continue Reading

Supreme Court Upholds DOL’s 2010 Interpretive Guidance Reversing Prior Position Regarding FLSA Classification of Loan Officers

Reversing the D.C. Circuit’s 2013 opinion, the Supreme Court today held that the U.S. Department of Labor did not violate the Administrative Procedure Act (APA) when, in 2010, it issued its Administrator’s Interpretation stating that mortgage loan officers generally do not qualify for the administrative exemption without first affording the public the opportunity for notice … Continue Reading
LexBlog