The FLSA’s learned professional exemption provides an exemption from overtime for employees who have academic credentials in a field of “science or learning customarily acquired prolonged academic instruction” and who utilize this formal educational training in the performance of their job duties. Typical examples include doctors, lawyers, and certified public accountants, and doctors and lawyers need
misclassification
California Court of Appeal Upholds Applicability of State Commission Exemption to Sales Consultant
As we have previously discussed, the FLSA contains an exemption for commissioned employees in the retail or service industry who meet certain parameters: colloquially referred to as the “7(i)” exemption. California has a similar exemption which the California Court of Appeal, Second Appellate District recently applied to a sales consultant, holding that Defendant’s payments qualified as…
Seventh Circuit Upholds Pro-Employer Method of Overtime Calculation for Misclassified Employees
The Fair Labor Standards Act requires employers to pay non-exempt employees one and one half times their regular rate of pay for any hours worked in a workweek in excess of 40. United States Department of Labor regulations, as set forth in 29 C.F.R. § 778.114(a), allow an employer to utilize the fluctuating workweek (“FWW”) method…
Different Circuit, Different Result: Fifth Circuit Upholds Independent Contractor Classification Under FLSA
As discussed here, here and here, the issue of independent contractor classification under wage, unemployment, tax and other laws is omnipresent, continuing to arise in litigation and legislative reform. In a rare victory for employers in this regard, this week the Fifth Circuit Court of Appeals (encompassing Texas, Louisiana and Mississippi) affirmed a district…
Ninth Circuit Decision Highlights Concerns With Independent Contractor Classification
In a decision reiterating important independent contractor issues for employers, the Ninth Circuit Court of Appeals last week reversed a lower court decision holding that certain delivery drivers were properly classified as independent contractors under various provisions of the California Labor Code. Narayan v. EGL, Inc., 2010 U.S. App. LEXIS 14279 (9th Cir. July…
Jackson Lewis Attends Wage and Hour Division Public Forum Articulating DOL Enforcement Agenda
On Friday, May 21, 2010, the Department of Labor, Wage and Hour Division held a public Stakeholder Forum, during which key members of the Wage and Hour Division (WHD) discussed WHD’s goals and regulatory agenda. Jackson Lewis attended the Forum.
After welcoming the crowd, Nancy Leppink, the WHD Deputy Administrator pointed out some of WHD’s accomplishments…
Court Allows Counterclaim To Set Off Fees Paid To Independent Contractors Alleging Misclassification
When an independent contractor alleges s/he was misclassified and seeks alleged unpaid minimum wage and overtime, a significant issue is whether a prevailing plaintiff can receive a windfall. Simply put, can an independent contractor alleging misclassification under the FLSA (or state law) keep fees for services already collected, and also collect a damages award for…
USDOL Officials Discuss Misclassification and Other Initiatives To Encourage Employer Compliance with FLSA
During the week of April 26, senior Labor Department officials discussed upcoming rules and initiatives. In a web chat, Nancy Leppink, deputy administrator of the Wage and Hour Division, stated that the agency will issue proposed rules covering numerous areas including companionship services, child labor and recordkeeping within the next 18 months. The proposed recordkeeping rules are…