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.
Exemptions
Paying On a “Salary Basis” Requires Actual Payments
As we have discussed before, to be considered an exempt executive, administrative, or professional employee, most employees must be paid on a “salary basis,” meaning that they receive a fixed salary for each workweek regardless of the number of hours worked or the quality or quantity of work performed. In a ruling that at…
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…
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…
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…
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…
“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…
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…
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…
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…