Category Archives: Exemptions

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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

Pharmaceutical Sales Representatives Found to be Exempt by Seventh Circuit

The Seventh Circuit recently weighed in on whether pharmaceutical sales representatives are exempt under the FLSA in Susan Schaeffer-LaRose v. Eli Lilly & Company.  In this consolidated case, the Seventh Circuit focused on the administrative exemption in determining that the sales representatives were exempt.  Because the Court found that the sales representatives met the administrative … Continue Reading

Recent Settlements Agreeing to Pay Overtime for Misclassification of Employees

Misclassification of employees continues to bring a lot of headaches to employers.   I have worked with a wide variety of businesses on this issue – from Fortune 500 to “mom and pop” companies.  Each has its own way of doing things in this area and monitoring classification compliance is pretty low on the to-do list.  … Continue Reading

More Store Managers Found to Meet Executive Exemption

On April 3, 2012, a federal district court in South Carolina determined that two Dollar General store managers met the executive exemption from overtime pay under the FLSA.  Gooden v. Dolgencorp and Thomas v. Dolgencorp.  Granting summary judgment to Dolgencorp, the court held that Gooden’s and Thomas’s primary duties were managerial in nature based upon … Continue Reading

Do I Have To Pay An Exempt Employee Who Answers E-Mail Or Phone Calls While On FMLA Leave? [Wage & Hour FAQ]

Q. A salaried, exempt employee who recently returned from a week of unpaid FMLA leave claims that he is entitled to be paid his full salary for entire week because he responded to a number of work-related e-mails and telephone calls while he was out. Do we have to pay? A. Wage and hour law is … Continue Reading

Can We Suspend An Exempt Employee Without Pay? [Wage & Hour FAQ]

Q. One of our salaried exempt employees appears to have violated our sexual harassment policy. We would like to suspend him without pay for 3 days. Is this allowed under the FLSA? A. Maybe, but check your state’s laws as well.  With a few specific exceptions, employees whose duties qualify them as executive, administrative and … Continue Reading

Seventh Circuit Weighs In On Commonality Requirement in Class Actions

The Seventh Circuit recently applied the Supreme Court’s Wal-Mart Stores, Inc. v. Dukes decision to class certification in a wage and hour action, and affirmed the certification of two classes.  Ross v. RBS Citizens N.A. d/b/a Charter One.  The Seventh Circuit held that the district court did not abuse its discretion in certifying two classes … Continue Reading

"Right to Know" Rule Not Likely in 2012

For roughly the last two years, the U.S. Department of Labor has been contemplating (some would say “threatening”) revisions to the recordkeeping regulations under the Fair Labor Standards Act that would require an employer who classifies an employee as exempt to prepare a written justification of the basis for the exemption. This document would have … Continue Reading

Does Lady Gaga Owe Assistant OT?

Imagine you are the personal assistant for the world’s most famous artist, Lady Gaga.  You have the opportunity to travel the world, meet famous people and watch your boss hit the button to drop the “ball” in Times Square on New Years Eve.  What could be better?  Well, apparently, being paid overtime.  Recently, Lady Gaga’s … Continue Reading

Pharmaceutical Sales Representative Case Goes to Supreme Court

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 do not … Continue Reading

Does An Exempt Employee Who Calls In Sick The Day Before Thanksgiving Get Holiday Pay? [Wage & Hour FAQ]

Q. Our holiday pay policy says that employees must be at work the day before and the day after a holiday. Our office is closed Thursday and Friday for Thanksgiving. If an exempt employee works Monday and Tuesday but calls in “sick” on Wednesday, can we deny the employee holiday pay? A. Many employers have policies … Continue Reading

Exempt Employees, Paid Leave, and Partial Day Absences [Webinar Q&A]

Another in our series of answers to questions from our September 28 webinar on wage and hour law in higher education: Q. If an exempt employee only works a half day, i.e. they go home sick at noon, and they have both sick and vacation leave available, can we require that they use four hours of leave … Continue Reading

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 Company … Continue Reading

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 … Continue Reading
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