Tag Archives: exempt

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

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

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

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

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

North Carolina Judge Upholds Employer Classification of Employee as Exempt Computer Professional

The rapidly evolving world of information technology can give rise to disputes regarding the applicability of the FLSA’s 20+ year-old exemption for “computer professionals.”  A new decision reinforces that individuals whose job responsibilities require them to maintain large networks qualify for the exemption.  Campbell v. Kannapolis City Schs. Bd. of Educ., 2014 U.S. Dist. LEXIS … Continue Reading

Second Circuit Finds Audit Associates Are Exempt Professionals

Affirming a highly-publicized 2012 decision from Southern District of New York Judge Colleen McMahon, the Court of Appeals for the Second Circuit ruled last week that audit associates employed by “Big Four” accountancy KPMG qualified for the learned professional exemption from overtime under the FLSA.  Pippins v. Kpmg Llp, 2014 U.S. App. LEXIS 13997 (2d … Continue Reading

Ohio Judge: Mortgage Underwriters Properly Classified As Exempt Administrative Employees

The exempt status of loan officers continues to make headlines as the Mortgage Bankers Association presses for Supreme Court affirmance of its successful challenge to a DOL opinion regarding the applicability of the administrative exemption to those workers.  A new court decision highlights the fact intensive nature of exemption inquiries, and also the potentially misleading … Continue Reading

Following Seventh Circuit’s Lead, Pennsylvania Court Holds Insurance Claims Examiner To Be Exempt Administrative Employee

Though courts have generally disfavored such claims, from time to time insurance adjusters and examiners allege that the FLSA’s administrative exemption does not apply to their work because their work either: 1) does not relate to business operations of their employer; or 2) does not require the exercise of discretion and independent judgment.  Rejecting such … Continue Reading

Georgia Court Finds Rental Manager Exercised Discretion, Administratively Exempt

Administrative employees classified as exempt under the administrative exemption who function as a “one man department” at times challenge whether their work genuinely constitutes the exercise of discretion and independent judgment with respect to matters of significance.  They argue that without subordinates, the work must entail significant ministerial tasks.  Rejecting just such a challenge, a … Continue Reading

Virginia Judge Finds Loan Officer to Be Outside Salesman Exempt From Minimum Wage and Overtime

While much litigation has concerned the applicability of the administrative exemption to loan officers, culminating in the Court of Appeals for the D.C. Circuit’s invalidation of the Department of Labor’s interpretation that they do not qualify for that exemption, loan officers with appropriate job duties and responsibilities may also qualify for the outside sales exemption, … 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

District of Columbia Federal Court Rules Trade Association Not FLSA Enterprise

As we recently discussed, there are exceptions to the FLSA’s broad coverage provisions. One such FLSA exception pertains to organizations—often not-for-profits—which are not “enterprises”, defined as a person or persons performing related activities “for a common business purpose.” A recent decision from the United States District Court for the District of Columbia is instructive as the court … 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

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

Deductions Pursuant to Unpaid Leave Policy Offered Only In Full Day Increments Do Not Destroy Exempt Status

The United States District Court for the District of Maryland recently held that deductions from an exempt employee’s weekly salary for leave taken pursuant to an unpaid leave policy offering such leave only in full day increments did not impact the employee’s exempt status. Kulish v. Rite Aid Corp., 2012 U.S. Dist. LEXIS 176760 (D. Md. … Continue Reading

Southern District Judge McMahon: Junior Accountants Are Exempt “Professionals”

FLSA litigation generally moves from industry-to-industry, and, in the most recent wave of litigation, one of the hardest hit industries has been the accounting profession, particularly the “big four” accounting firms, which have been subjected to large-scale challenges of their classification of junior accountants as exempt. Typically, these individuals hold accounting degrees and work on massive … Continue Reading

Tenth Circuit Upholds Salary Basis (and Thus Exempt Status) Despite Deductions From PTO Bank

The more straightforward requirement in classifying an employee as exempt from overtime under the FLSA’s white collar exemptions is payment – on a “salary basis” – of a salary no less than $455/week (some states require a higher salary basis).  Employers must ensure this amount is paid to the employee for each and every workweek … Continue Reading

Florida District Court Rejects “Willful” Allegation, Dismisses Misclassification Claim

In Florida, where state law only obligates employers to pay minimum wage (but not overtime) and FLSA litigation remains rampant, the FLSA limitations period is of particular importance in overtime disputes, particularly in regard to whether the limitations period is extended from two to three years based on a finding that the violation was “willful.” 29 … Continue Reading

Court Upholds DOL’s “Administrative Interpretation” Concerning FLSA Status of Loan Officers

Following the DOL’s controversial 2010 Administrative Interpretation concluding that the administrative exemption to overtime does not apply to mortgage loan officers, numerous industry responses followed, including a Mortgage Bankers Association (MBA) lawsuit challenging the Interpretation. The MBA suit was initiated pursuant to the Administrative Procedure Act (APA) and sought a court ruling that the DOL violated … Continue Reading
LexBlog