Tag Archives: exemption

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

Court Finds Commissioned Jewelry Salesman Qualifies For Outside Sales Exemption Based On His Own Complaint’s Allegations

Because most FLSA exemptions are affirmative defenses, their applicability is not often established by the Plaintiff’s Complaint, of which s/he is “master” and can shape to avoid addressing exemption-triggering duties. There are exceptions. In a recent opinion, a Manhattan federal district judge ruled that a commissioned salesman who traveled from his home office to conduct … 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

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

NMB Finds Medical Helicopter Service Subject to Railway Labor Act

The determination of whether an entity is covered by the Railway Labor Act impacts compensation strategy and potential liability as the FLSA exempts from its overtime requirement individuals employed by such air carriers.  The coverage determination is made by the National Mediation Board (NMB), which recently issued new opinion re-confirming the applicability of the Railway … Continue Reading

Eighth Circuit Affirms In Part District Court’s Rejection of Jury Finding That Managers Were Properly Classified as Exempt

Reviewing a decision of a trial judge reversing a jury’s finding that several lumber company managers were properly classified as exempt, the Court of Appeals for the Eighth Circuit ruled on the narrow issue of whether testimony that ownership solicited feedback from “all employees” could support a finding that the exempt managers’ recommendations were given … Continue Reading

Supreme Court Affirms Seventh Circuit: Donning of Protective Gear “Changing Clothes” Within the Meaning of FLSA Provision

Building on its prior rulings in so-called “donning and doffing” cases, the Supreme Court affirmed the Seventh Circuit’s 2012 decision holding that the donning of certain protective gear qualifies as “changing clothes” within the meaning of 29 U.S.C. § 203(o), and thus is susceptible to exclusion from the hours worked calculation under the terms of … Continue Reading

Eastern District of Virginia Judge Cacheris Expands Upon “Customarily and Regularly Away” Prong Of Outside Salesperson Analysis

Following-up on his decision on January 7th granting summary judgment to Prospect Mortgage regarding the applicability of the outside sales exemption to one loan officer, Judge James C. Cacheris of the Eastern District of Virginia has issued two more decisions on similar motions for summary judgment by the employer, granting a second one and denying … 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

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

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

Two Courts Analyze FLSA’s Establishment Test To Determine If Plaintiffs Are Entitled To Overtime Pay

General practitioners and non-attorneys may or may not be aware that the applicability of the FLSA’s overtime provision to various aspects of a business is not always uniform across the “establishment.” This is because the FLSA’s implementing regulations contemplate multiple distinct “establishments” even within the same physical premises. 29 C.F.R. § 779.305.Two new District Court decisions highlight … Continue Reading

Ohio Federal Court: USDOL’s “New” Interpretation of Loan Officer Status Was Proper

Much attention has been paid to the Department of Labor’s March 2010 Administrative Interpretation, which reversed prior DOL opinions and stated that mortgage loan officers do not qualify for the administrative exemption under the FLSA. The Mortgage Bankers Association has filed a lawsuit seeking to invalidate the interpretation as a violation of the Administrative Procedures Act. While … Continue Reading

Supreme Court Declines to Review Drug Reps Classification Issue

Despite the Circuit split created by this month’s decision from the Ninth Circuit, holding that pharmaceutical sales representatives are outside sales employees within the meaning of the FLSA, the Supreme Court has declined to take up Novartis’ appeal of the adverse ruling it received on this issue from the Second Circuit.  The Supreme Court’s ruling … Continue Reading

Lacking Circuit Court Guidance, District Court Adheres To Earlier Ruling That Pharmaceutical Sales Representatives Are Exempt Outside Salespersons

In the latest installment of the ongoing litigation over whether pharmaceutical sales representatives are exempt from overtime under the FLSA (see earlier post here), a district court in Indiana declined to reconsider its decision holding that PSRs do qualify for the outside sales exemption. See Schaefer-Larose v. Eli Lilly & Co., S..D. Ind. Docket No. 07-CV-1133, … Continue Reading

Minnesota Federal Court Discusses Applicability of White Collar Exemptions in the Financial Services Industry

On March 31, Magistrate Judge John Tunheim of the United States District Court for the District of Minnesota issued a lengthy opinion in several consolidated FLSA actions brought by a group of securities brokers who alleged they were misclassified as exempt under the FLSA.  In re Rbc Dain Rauscher Overtime Litig., 2010 U.S. Dist. LEXIS … Continue Reading
LexBlog