Administrative Exemption

News & Analysis as of

No Wishes Granted for Aladdin—Class Cert Denied

In the Central District of California—often known as a magical kingdom for plaintiffs in wage-hour lawsuits—Judge Fernando Olguin brought everyone back to reality by denying class certification. Plaintiff Aladdin Zackaria...more

Supreme Court Ruling Makes Mortgage Loan Officers Eligible for Overtime Pay

Federal agencies now have the authority to interpret their own rules. On March 9, 2015, in Perez v. Mortgage Bankers Ass’n, No. 13-1041, slip op. (U.S. Mar. 9, 2015), the United States Supreme Court effectively gave...more

U.S. Supreme Court Holds Agency Interpretations Are Not Subject To Notice-and-Comment Rulemaking Requirement

In 2004, the DOL revamped its regulations regarding the Fair Labor Standards Act (FLSA) administrative exemption. In 2006, the Bush DOL issued an opinion letter finding that mortgage loan officers qualified for the...more

Mortgage Loan Officers are Not Exempt Employees per the DOL and the Supreme Court Says that is Okay

The legal ping-pong match between the Department of Labor (DOL) and the Mortgage Bankers Association (MBA) over whether mortgage loan officers are eligible for overtime appears to be at an end. The Supreme Court recently...more

Who Needs Rules? The DOL Wins Supreme Court Battle In Mortgage Loan Officer Administrator Interpretation vs. Rule Making

When a federal agency deviates significantly in its historic interpretation of a regulation – in this case, doing a complete 180° on whether mortgage loan officers are exempt from overtime under the Fair Labor Standards Act –...more

D.C. Circuit Sanctions Labor Agency 'Flip-Flop' on Overtime Requirements for Mortgage Loan Officers

The U.S. Court of Appeals for the District of Columbia Circuit recently vacated a 2010 interpretation of federal wage and hour law in which the Department of Labor (DOL) had concluded that mortgage loan officers do not...more

No Administrative Exemption Under California Law Where Worker Did Not Receive Fixed Salary

Negri v. Koning & Associates, No. H037804 (May 16, 2013): In a recent decision, a California Court of Appeal held that an insurance claims adjuster was not an exempt employee under the administrative exemption of Industrial...more

Sixth Circuit Affirms Defense Verdict In FLSA Case Involving Insurance Investigators

Is It Time To Deep-Six The “Administration-Production” Dichotomy? There is a very funny set of books under the title “Unuseless Japanese Inventions” by Kenji Kawakami. The books depict, in a matter-of-fact fashion, a...more

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