Exempt-Employees

News & Analysis as of

Highly Compensated Employee Cannot Claim FLSA Violation Based on Employer's Wage Withholding

In order to claim most exemptions from overtime and minimum wage requirements under the Fair Labor Standards Act, employers must pay a guaranteed salary. Employers can only deduct from such salaries in very limited...more

Supreme Court Update: Rjr Nabisco, Inc. V. European Community (15-138), Encino Motorcars, Llc V. Navarro (14-415), Kingdomware...

Having cleared some near-blockbusters off the table on Friday (everything's relative this term), we've still got an eight-case backlog to get through before the final decision day of OT15 on Monday. Since we've got an even...more

Hospitalitas Newsletter - Summer 2016

In this issue: - Controversial Overtime Rule Comes in For a Landing - What You Need to Know About Hospitality REITs - The Legal Implications of Restaurant-Designed House Brand Craft Beers - FDA Finalizes Revisions...more

"Nondiscretionary" Pay And The 90%/10% Approach

Once the U.S. Labor Department's revised definitions for the federal Fair Labor Standards Act's Section 13(a)(1) "white collar" exemptions take effect, employers will be allowed to: - Pay as little as 90% of the new $913...more

Jocks and Docs: Classifying Postdocs and Coaches Under the DOL’s New Rules

On May 18, 2016, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued its final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer...more

Putting the Brakes on the DOL: USSC Finds that DOL Not Entitled to Deference on Service Manager Overtime Regulation

Yesterday, in Encino Motorcars v. Navarro, No. 15-415, the U.S. Supreme Court vacated a Ninth Circuit ruling that had deferred to a Department of Labor 2011 regulation that auto service advisors were nonexempt and should...more

Supreme Court Calls “Do Over” On FLSA Service Advisor Exemption Rule

In a 6 to 2 decision, the U.S. Supreme Court today continued the flip-flop-flip on determining whether an automobile dealership’s service advisors are exempt from the FLSA’s overtime requirements. The Court vacated and...more

Car Dealership’s Service Advisors’ Overtime Controversy Stalls in the Supreme Court

On June 20, 2016, the Supreme Court of the United States issued a ruling regarding the Fair Labor Standards Act’s (FLSA) overtime exemption for “any salesman, partsman, or mechanic primarily engaged in selling or servicing...more

Supreme Court Declines to Give Chevron Deference to Agency Regulation that Departed from Prior Agency Practice

On June 20, 2016, the U.S. Supreme Court issued a 6-2 opinion in Encino Motorcars, LLC v. Navarro et al., holding that the U.S. Department of Labor (Labor Department) was not entitled to receive Chevron deference with respect...more

The Supreme Court Shoots Down DOL Regulations, But Declines To Rule Whether Service Advisors are Exempt From Overtime Pay...

Yesterday, the United States Supreme Court issued its long-awaited decision in the Encino Motorcars, LLC v. Navarro case, that many hoped would resolve the issue as to whether Service Advisors at auto dealerships are exempt...more

U.S. Department of Labor’s New Overtime Rules Announced

That rumbling you may have felt this week wasn’t another Oklahoma earthquake. It was the reaction of employers to the new overtime regulations just released by the U.S. Department of Labor (“DOL”). Set to take effect December...more

DOL's final rule increases minimum salary for overtime exemptions

The Fair Labor Standards Act (FLSA) generally requires employers to pay employees at least the federal minimum wage and overtime compensation for all hours worked over 40 in a workweek. Overtime pay must be at least 1½ times...more

New Overtime Rule Could Raise Benefit Plan Issues for Employers

On May 18, 2016, the U.S. Department of Labor (DOL) issued the final version of a highly anticipated new rule revising overtime regulations of the Fair Labor Standards Act (FLSA). The new rule, taking effect on Dec. 1, 2016,...more

Q&A on the FLSA’s Changes to Overtime Exemptions

Last month, we discussed the U.S. Department of Labor’s (DOL) recently published final rule making changes to the so-called “white collar” overtime exemptions under the Fair Labor Standards Act (FLSA). We also presented a...more

Best in Law: Act Now on New OT Rule

The U.S. Department of Labor recently updated the regulations governing which executive, administrative and professional employees (“white collar workers”) are entitled to the Fair Labor Standard Act’s minimum wage and...more

Struggling with the New Overtime Rule?  Here is One Compensation Option for Newly Non-Exempt Employees

In response to the final overtime rule, which increases the minimum salary level to qualify for the white collar exemptions under the Fair Labor Standards Act (“FLSA”), employers must begin to evaluate and alter their current...more

Why Ontario Employers Should Take Another Look at Who They Treat as Exempt From Overtime

One of the most common problems employers face in today’s workplace—where technology and the demand for employee responsiveness blur the line between work and non-work time—is determining which employees are entitled to be...more

The New Overtime Regulations: How Will They Affect Your Workplace? (Part 2)

New overtime regulations unveiled by the U.S. Department of Labor (DOL) on May 18, 2016 will affect approximately 4.2 million currently “exempt” workers. Unless their salaries are increased to at least $913/week, these...more

FAQs on Department of Labor’s New FLSA Overtime Rule

As we reported on May 18, 2016, the U.S. Department of Labor (DOL) published its new final rule regarding the overtime regulations of the federal Fair Labor Standards Act (FLSA). The following are key FAQs coming out of our...more

Have Exempt Employees? If So, There’s Some Big Changes in the Forecast

April showers brings May flowers…or so goes the saying. For California employers, April showers brought a May deluge. On April 4, 2016, California Governor Jerry Brown signed legislation to raise the statewide minimum wage,...more

Employment Law Commentary, May 2016

The New Federal Overtime Regulations: Are You Ready? - On May 18, 2016, the U.S. Department of Labor (DOL) issued its Final Rule updating its regulations to increase the salary threshold required to qualify for the...more

Employment Law Roundup: Summary of Recent Changes Affecting New York Employers

Private employers in New York should be aware of a number of employment law changes over the past year that affect background checks (both credit and criminal history), anti-discrimination protections and reasonable...more

U.S. Department Of Labor Issues Final Overtime Exemption Rule

On May 18, 2016, the United States Department of Labor (DOL) published its final overtime rule, which significantly changes the nature of who will qualify as salaried exempt employees under the executive, administrative, and...more

FLSA Morale Nightmare: Dealing With The “New Non-Exempt”

My first job out of college was as a non-exempt clerical, and I wasn’t a very “good fit.” The work aside, I chafed at the rigid rules about start times-stop times-breaks-lunch hours-quitting times. If there was some work that...more

Employer Concerns About The New Overtime Exemption Rules Aren't A Myth

Every economist knows that there’s no such thing as a free lunch. That’s as true in the labor market as in any other area of the economy, but you’d hardly know that by reading the DOL’s publications promoting its new overtime...more

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