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,
exempt
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…
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…
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 …
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…
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…
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…
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…
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…
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…