Category Archives: Exemptions

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What Is The Section 7(i) Exemption And Does It Apply To Auto Dealer Service Advisers?

Over the summer, the U.S. Supreme Court punted on the question of whether “Service Advisers” or “Service Writers” at auto dealerships fall within the Fair Labor Standards Act’s exemption for “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles.” For those outside of the auto industry, these are the people who greet you when … Continue Reading

The Supreme Court Shoots Down DOL Regulations, But Declines To Rule Whether Service Advisors are Exempt From Overtime Pay Requirements

Yesterday, the United States Supreme Court issued its long-awaited decision in the Encino Motorcars, LLC v. Navarro case, that many hoped would resolve the issue as to whether Service Advisors at auto dealerships are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA).  As we reported back in January 2016, the Supreme … Continue Reading

Top 5 Takeaways From Webinar on Final DOL Overtime Exemption Rule

Thank you to those who attended today’s webinar, “New DOL Overtime Exemption Rules – What You Really Need to Know Now.”  We hope that everyone enjoyed the presentation and learned information that will assist in getting your organization ready for compliance. A recording of the webinar is available here. For those unable to attend, here … Continue Reading

New Rules Announced: $47,476 Minimum Salary, Effective 12/1/2016

Late yesterday the White House and Department of Labor released key details of the new FLSA overtime exemption rules for white collar workers. The final rules themselves have just been released this morning.  We are still digesting 500-plus page final rules, but the key points are as follows: Effective Date: December 1, 2016. Note that this is … Continue Reading

Details of New Overtime Exemption Rules Begin To Emerge

Bloomberg BNA is reporting (subscription required) that according to a “source familiar with the situation,” the DOL’s new overtime exemption rules will take effect on December 1. The new minimum salary for exempt executive, administrative and professional employees will be $913 per week or $47,476 per year. That’s still more than double the current $455 per week, … Continue Reading

Can We Have Both Exempt and Non-Exempt Employees With The Same Job Title?

As employers try to figure out how to cope with the coming increase in the minimum salary for the executive, administrative and professional employees, some find themselves with job classifications where the salary scale straddles the new line between exempt and non-exempt. Can employers in this situation categorize employees whose compensation falls below the line … Continue Reading

Wage and Hour Basics Series: The "Fee Basis" and the Proposed FLSA Regulations

As we have discussed in the past, to be eligible for one of the “white collar” exemptions (executive, administrative, or professional) or as a highly compensated employee (HCE), Section 541.600 of the FLSA regulations requires employers to compensate employees on a salary basis (currently $455 for white collar exemptions, but likely rising to around $970, … Continue Reading

The New FLSA Regulations: What Changed, What Didn't, What's Next for Employers

Note: This post relates to the Department of Labor’s proposed rules issued in 2015. For a summary of the final rules issued May 18, 2016, please check out this post, and see this post for a link to the recording of our May 23, 2016 webinar. This morning, the Department of Labor’s Wage & Hour Division … Continue Reading

Is Your Volunteer Really an Employee? The Answer Might Surprise You [Part 2]

In our last post, we looked at the rules governing volunteers at for-profit entities. As we discussed, for-profit organizations have almost no latitude to accept volunteer services. However, nonprofit employers face a more relaxed regulatory scheme under the FLSA when it comes to volunteers. Unlike their for-profit brethren, nonprofit employers can accept volunteer services without … Continue Reading

Insurance Industry Wins Temporary FLSA Exemption for Insurance Adjusters in CRomnibus

On Tuesday, we discussed Congress’s passage of the Consolidated and Further Continuing Appropriations Act, 2015, nicknamed CRomnibus in the waning days of the 2014 legislative session. The omnibus spending bill avoided another government shutdown and funded most federal agencies (save for the Department of Homeland Security) through the end of the federal government’s  fiscal year … Continue Reading

White Collar Exemptions: Paying Employees Wages in Equity, Rather than Cash

The saying goes that “Cash is King.” However, entrepreneurs often quickly learn (sometimes in painful ways) that it is Cash Flow that is really King. Run a quick Google search for “accounts receivable” financing or factoring to get a sense of how important that market is for businesses. Working for a telecommunications manufacturer, I can … Continue Reading

Defense Appropriations "Wage Theft" Amendment May Bar Employers with FLSA Violations from Defense Contracts

Late last month, the Senate referred the Fiscal Year 2015 Defense Appropriations Act to the Senate Committee on Appropriations for consideration. The House of Representatives passed its version (H.R. 4870) on June 20 with substantial bipartisan support, 340-73, after considering 80 different amendments. Since this is a wage and hour blog, you can safely assume … Continue Reading

I'm an Executive, You're an Executive, We're All Executives! 8th Circuit Lowers the Bar for FLSA "Executive" Exemption

Last month, the U.S. Court of Appeals for the Eighth Circuit issued an opinion that essentially watered down the Fair Labor Standards Act (FLSA) overtime exemption for executives. This decision perhaps makes an unwitting case for President Obama’s intended overhaul of the FLSA’s white collar exemptions that we discussed recently. An employer must satisfy four … Continue Reading

Obama Calls for Revisions of "White-Collar" FLSA Overtime Exemptions

In an unexpected move, the Obama administration officially announced today that it will issue a Presidential Memorandum to the U.S. Department of Labor (DOL) instructing its Secretary to update regulations regarding overtime protection for workers under the FLSA. Any changes to the regulation would be the first since 2004, when the Bush administration increased the … Continue Reading

Compensating Non-Exempt Employees Webcast

Some of the most common questions we receive from clients involve how to properly compensate non-exempt employees. Join me on Thursday, November 29, 2012, at 11:00 a.m. CST, for a two-hour live webcast entitled “Understanding FLSA’s Compensable Time Requirements for Non-Exempt Employees.”  I will be serving on a panel in which we will address the … Continue Reading

Family Dollar Settles Store Manager Overtime Claim

On September 12, 2012, Family Dollar announced that it will pay up to $14 million to settle a class action in the Southern District of New York.  Similar to other class actions filed against Family Dollar over the years, New York store managers claimed that the Company failed to pay them overtime.  Although the agreement … Continue Reading

Are Summer Camp Staff Exempt? [Lesser Known Exemptions]

Most regular readers of this blog will be familiar with the most common exemptions to the overtime requirements of the Fair Labor Standards Act, those being the “white collar” exemptions for executive, administrative, and professional employees. However, the FLSA also contains a number of less well-known exemptions covering specific establishments or industries. In this post, … Continue Reading

Supreme Court Finds Pharmaceutical Representatives Exempt From Overtime

This morning the U.S. Supreme Court ruled 5-4 that pharmaceutical representatives are “outside salesmen” exempt from the overtime requirements of the Fair Labor Standards Act. Christopher v. Smithkline Beecham Corp. (.pdf).  This has been a hotly-contested issue in the courts and the subject of a split between the federal appellate courts, with the Ninth and … Continue Reading

Court Rejects Challenge to DOL's Interpretation That Mortgage Loan Officers are Non-exempt

I wanted to give our readers a quick update on the status of mortgage loan officers.  In Mortgage Bankers Ass’n v. Solis, a federal district court in Washington D.C. recently rejected a challenge to the March 2010 DOL administrator’s interpretation that mortgage loan officers do not generally meet the administrative exemption under the FLSA.   As previously … Continue Reading