Exemptions

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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,…

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:

  1. Address holistically the

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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…

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…

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…

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 …

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…

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…

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…

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…