In a previous post in August, I questioned whether the pharmaceutical companies were losing the exemption battle as it related to pharmaceutical sales representatives and the outside sales exemption. The Supreme Court had declined to review the Second Circuit’s Novartis holding that pharmaceutical sales representatives do not qualify for the outside sales exemption because they
Am I Obligated to Pay a Pro Rata Bonus to Employees No Longer With The Company?
As the end of the year rolls around, we inevitably are asked questions related to the payment of bonuses, particularly for those employees who are terminated before annual bonuses are paid out. Of particular interest is whether an employee who has been terminated – voluntarily or involuntarily – is entitled to a pro rata share
What Do You Mean the Job May No Longer Be Considered Exempt?
My last blog entry on travel time only touched on one issue that may arise as we see more employees being asked to take on additional responsibilities and assignments in lieu of hiring new personnel. Indeed, consolidation of jobs or responsibilities can lead to a number of other potential wage and hour issues that can
Do Employers Have to Pay for Travel Time?
In this economy, we continue to see lay-offs and slow growth in hiring. As a result, more employees are being asked to take on additional responsibilities and assignments. These circumstances, coupled with the fact that some employers are properly re-classifying certain jobs as non-exempt, have led to an increase in work-related travel for non-exempt employees.
How to Calculate Overtime for Salaried Employees Who Also Receive Commissions [Wage & Hour FAQ]
Reading about a recent lawsuit filed against Groupon, I was reminded that even the most cutting edge businesses may not understand the nuances associated with calculating overtime and find themselves a target for running afoul of wage and hour laws. My colleague and fellow blogger, Bill Pokorny, wrote a helpful blog entry last week on
Can An Employer Pay An Exempt Employee Extra Compensation? [Wage & Hour FAQ]
Q. My Company anticipates embarking on a big project this fall that will have extreme importance to the Company’s future and require extra hours at the office. The Company wants to give a little extra pay to employees who work on this important project. A number of these employees are classified as exempt. May the
Are Pharmaceutical Companies Losing the Exemption Battle?
Recently, another group of pharmaceutical sales representatives successfully demonstrated that they are not exempt from overtime under the FLSA. Kuzinski, et al., v. Schering Corp Focusing on the administrative exemption, the District Court of Connecticut held that the sales representatives’ work was not directly related to Schering’s management or general business operations and they lacked
Tenth Circuit Rules Donning and Doffing Protective Equipment Held Not To Be Compensable
The question of whether to pay employees for putting on protective gear has plagued employers for years. While the federal courts are divided over this issue, at least five Appellate Courts – the Fourth, Sixth, Seventh, Eleventh and now the Tenth Circuits – have held that personal protective equipment is included within the meaning of
Simply Calling A Job An Unpaid Internship Does Not Make It So
As summer break is about to begin, there is a significant decrease in the number of paid summer jobs available for students. As an alternative, there are a number of students hoping to land internships in the private sector. Given the number of students vying for these positions and the country’s continued slow economic
Tip Credits: Twenty Percent Rule For Non-Tipped Duties Adopted
Recently, the Eighth Circuit Court of Appeals ruled that tipped employees who spend more than 20 percent of their time on non-tip-producing “related duties” must be paid at least the minimum wage for that time. Fast v. Applebee’s. This decision marks the first time an appellate court has expressly adopted the Department of Labor’s