Tag Archives: Exemption

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

New Salary Threshold May Be About $47,000

According to a report from Bloomberg BNA, unnamed DOL staffers have stated that the salary threshold in the hotly anticipated FLSA exemption rules will be about $47,000 per year, down slightly from the $50,440 level suggested by the proposed rules published last summer. This is  not an official announcement, so while the statement may well be … Continue Reading

New FLSA Exemption Rules - Coming In July?

Over the last few months we’ve been asked on an almost daily basis when the DOL will be publishing its hotly anticipated white collar exemption rules. The short answer is still, we don’t know. A few months ago, the word was “late 2016,” which made some sense due to the extremely high volume of comments the DOL … Continue Reading

New Exemption Rules May Be Delayed To Late 2016

Waiting is the hardest part.  Ever since the Department of Labor issued its proposal to substantially increase the minimum salary level needed to classify an employee as an exempt executive, administrative or professional employee, employers have been asking when the new rules will take effect. This is not an academic question: many organizations have long … Continue Reading

Many Home Companionship Workers No Longer Exempt

Agencies and other third-party employers of live-in household employees and home companionship providers, take note: the long-delayed regulations reclassifying many of these workers as non-exempt employees entitled to minimum wage and overtime under the FLSA are now in effect.  Since 1974, the FLSA has included an exemption for certain categories of domestic service workers, including … Continue Reading

DOL Will Not Extend Comment Period on Proposed Regulations

In July, we wrote about the Department of Labor’s proposed changes to the regulations governing the white collar exemptions of the Fair Labor Standards Act. The current regulations governing these exemptions—executive, administrative, and professional—include a salary basis test by which to determine if an employee meets one of these exemptions. The salary basis test currently … Continue Reading

Webinar Follow-Up: New DOL Overtime Exemption Rules and Independent Contractor Guidance

Thanks to all of our clients and friends for such a great turnout at today’s webinar on the new DOL overtime exemption rules and the Administrator’s Interpretation on independent contractors. In case you missed the webinar, or if you just want to go back and review the materials and recording, you can find both an … 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

New FLSA Regulations Released, Salary Threshold Doubled

UPDATED: For an updated entry, click here. Since last spring, we have been following developments in the oft-delayed Fair Labor Standards Act (FLSA) regulations rewrite by the Department of Labor (DOL). The Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) has now completed its review, and the Department of Labor finally … Continue Reading

9th Circuit Splits with 4th, 5th Circuits, Finds Auto Dealer Service Advisors Not Exempt Under FLSA

Reversing a district court decision, and declining to follow decisions from a number of other courts, including the Fourth and Fifth Circuits, the Ninth Circuit has deferred to the Department of Labor’s (DOL) “flip-flopped” view of whether the FLSA’s exemption for “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles,” applies to … Continue Reading

Hints About New FLSA Regulations Begin to Emerge: Minimum Salary May Double

Last spring, I made some predictions about what the new FLSA regulations would likely include when they were finally released. The regulations were delayed, but what we expect hasn’t changed, as I explained in November. On Twitter this past Friday (and you should be following @WageHourInsight, if you aren’t already), I highlighted an article that … 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

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

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

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
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