Tag Archives: retail or service

Affirming Dismissal, Seventh Circuit Holds Window Washing Business Is a “Service” Establishment and Its Employees Are Paid on a “Commission” Basis, Bringing Clarity to Application of 7(i) and Sharply Criticizing DOL Regulations and Its Application of 7(i)

In one of the most comprehensive circuit court opinions to address application of Section 207(i) of the FLSA—the provision of the law that allows employers to comply with the overtime provisions of the FLSA by paying commissioned employees of a retail or service establishment at least 1.5 times the minimum wage, instead of their regular … Continue Reading

Applying Multiple Defenses, Federal Court Rejects Motorcycle Mechanic’s Overtime Claim

Identifying two separate bases for finding a motorcycle mechanic ineligible for overtime under the FLSA, Judge Federico A. Moreno granted summary judgment to the Ducati dealership where the mechanic worked, Ducati Miami.  Henriquez v. Total Bike, LLC, 2013 U.S. Dist. LEXIS 179592 (S.D. Fla. Dec. 20, 2013). In challenging his exempt status, Henriquez first alleged … Continue Reading

Texas Federal Court Rules Tax Consulting “Retail or Service” Within Meaning of 7(i) Overtime Exemption

The overtime exemption applicable to "retail or service" employees codified at 29 USC § 207(i) has three requirements, as we have discussed in this space, and two of the requirements are readily met in many cases: the employee must receive time-and-one-half the minimum wage (currently $10.88/hour under federal law) for all hours worked inclusive of … Continue Reading

District Court Judge Defers to USDOL’s Continued Narrow Reading of “Retail or “Service” for Purposes of 7(i) Exemption

“Retail or service” is a classic example of a phrase of which the apparent plain language meaning does not bear a strong relationship to its legal or practical meaning for purposes of application of the 7(i) exemption. In determining whether an employee works in an industry properly deemed “retail or service” (and accordingly establishing eligibility for … Continue Reading

Vermont Court Holds Cable Installer Received Bona Fide Commissions, But Additional Evidence Needed to Establish 7(i) Exemption

The “retail or service exemption” to the FLSA, sometimes referred to as the “7(i) exemption”, noting the location where it is codified, 29 U.S.C. Section 207(i), has three requirements. While the first requirement, to pay time and one-half the minimum wage for all hours of work, is straightforward, the other two prongs—that an employee receive 50% … Continue Reading

Court Holds Employees Who Handle Internet and Phone Sales Qualify for 7(i) Overtime Exemption

The 7(i) exemption from overtime is not limited to “local” retail or service establishments, and applies to employers who sell nationwide via phone or the internet, a Utah district court has held, rejecting DOL regulations, and finding them antiquated. See Selz v. Invest Tools, Inc., 2011 U.S. Dist. LEXIS 93604 (D. Utah, Jan. 27, 2011).  Plaintiffs … Continue Reading

District Court Finds Commercial Window Washing Company To Be a “Retail or Service Establishment”, But Questions Whether Compensation Received Is a “Commission”

Litigation regarding what constitutes a “retail or service establishment,” under the “7(i)” or “retail sales” exemption continues. We recently reported a district court decision applying the exemption to employees selling precious metals. See La Parne v. Monex Deposit Co., 2010 U.S. Dist. LEXIS 59768 (C.D. Cal. Apr. 29, 2010).  Just a couple of months later, another district … Continue Reading

Account Executives Responsible For Selling Precious Metals Exempt Under 7(i)

The Fair Labor Standards Act contains an exemption from overtime for employees of a “retail or service establishment” who earn at least 1.5 the minimum wage for all hours worked and more than 50% of their compensation from commissions. This exemption is often referred to as the “retail sales exemption” or “7(i) exemption,” referencing the section … Continue Reading
LexBlog