The definition of an “employer” under the FLSA is, like a number of FLSA provisions, not well defined, as set forth in a long and thoughtful opinion from Judge Manish S. Shah of the Northern District of Illinois. Schneider v. Cornerstone Pints, Inc., 2015 U.S. Dist. LEXIS 166993 (N.D. Ill. Dec. 1, 2015). However,
seventh Circuit
Trauma Registrar Properly Classified As Exempt Administrative Employee Due To Exercise Of Discretion
Rejecting a claim that the position lacked “discretion and independent judgment,” an Indiana Federal Court recently found a trauma registrar for a Level III Trauma Center to be an exempt administrative employee. Brown v. Ind. Univ. Health Ball Mem’l Hosp., 2015 U.S. Dist. LEXIS 141921 (S.D. Ind. Oct. 19, 2015).
In Brown,…
Commissioned Sales Employee Not Entitled To Commission Payment Under The Plain Language Of Incentive Compensation Plan
This blog has stressed (most recently here and here) the importance of carefully drafting incentive compensations plans to avoid unintentionally converting incentive compensation into earned “wages” protected under state law. Another recent decision, this one from the Court of Appeals for the Seventh Circuit reinforces the employer benefits of careful drafting. Lawson v. Sun…
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…
Seventh Circuit Rules Changing Time Before and After Meals Non-Compensable
In the latest in a series of appellate decisions addressing “donning and doffing” issues, the Court of Appeals for the Seventh Circuit ruled that time spent changing at the start and end of a non-compensable meal break is not compensable time under the FLSA. Mitchell v. JCG Indus., 2014 U.S. App. LEXIS 5099 (7th…
Seventh Circuit Rejects Claim For Alleged Unpaid Wages Finding Construction Firm Lacked Actual or Constructive Knowledge of Alleged Work
While the FLSA’s “suffer or permit” standard is broad, it is not without limit. Building on a prior decision, the Court of Appeals for the Seventh Circuit reviewed several purported justifications for imputing knowledge of alleged additional work asserted by a construction employee and rejected claims of alleged unpaid wages asserted by the former…
Seventh Circuit Finds Insurance Company’s Internal “Answer Man” Proper Classified as Exempt Administrative Employee
Continuing its line of common sense interpretations of the administrative exemption, the United States Court of Appeals for the Seventh Circuit has ruled that an insurance company employee tasked with maintaining an in-depth understanding of particular insurance products and training sales staff on those products was an administratively exempt employee. Blanchar v. Std. Ins. Co.…
Supreme Court Accepts Review In FLSA “Donning/Doffing” Case
On February 21, 2013, the United States Supreme Court granted another FLSA certiorari petition, in the matter of Sandifer v. United States Steel Corp. In the underlying litigation in Sandifer, the plaintiffs sought compensation under the FLSA for time spent donning and doffing certain protective gear. Although the time spent donning…
7th Circuit Joins 3rd Circuit in Finding PSRs Exempt Administrative Employees
While the pharmaceutical industry is focused on the Supreme Court’s upcoming decision in Christopher, as to whether the work performed by pharmaceutical sales representatives (PSRs) for GlaxoSmithKline qualified for the outside sales exemption, another circuit court has weighed in on the duties of PSRs and their FLSA status in the context of the administrative…
Seventh Circuit: Magistrate Improperly Denied Serial Filing Plaintiff’s Attorney His Fees In FLSA Case
One oft-invoked disincentive to employers’ litigating FLSA claims (specifically non-class or collective claims) is the statute’s fee shifting provision: when a plaintiff prevails (however nominally), he is entitled to have his “reasonable” attorneys’ fees paid by the employer defendant (however the principle does not apply to a defense victory). In such cases, the individual plaintiff’s damages may…