News & Analysis as of

Southern District Magistrate Judge Clarifies FLSA “Computer Professional” Exemption

In an April 2014 decision in the Southern District of New York, Olorode v. Streamingedge, Inc., No. 11 Civ. 6934 (GBD) (AJP) (S.D.N.Y. Apr. 29, 2014), employers were given some clarification on the Computer Professional...more

The Commissioned Salesperson Exemption Just Got More Difficult to Establish

Many California employers rely on California's commissioned salesperson exemption from overtime for their inside sales employees. That exemption, however, is becoming increasingly difficult to establish. A recent decision...more

Peabody Decision Tightens Requirements for Commission Payments and Exempt Status

State and federal law create an exemption from overtime compensation for employees engaged in sales who satisfy specific criteria. Although the requirements under each set of laws are not identical, each generally provides...more

Supreme Court Agrees To Hear Trade Group Challenge To Mortgage Loan Officer Compensation Guidance

On June 16, the U.S. Supreme Court consolidated and agreed to hear two related cases regarding the Department of Labor’s (DOL) 2010 interpretation of its regulations under the Fair Labor Standards Act that mortgage loan...more

New Department of Labor Rule to Limit Live-In Employees Eligible for Exempt Status

The Fair Labor Standards Act (FLSA) has long provided an exemption for overtime wages to employees engaged in "companionship services," such as in-home caretakers who sleep at their patients' homes. Recently, however, the...more

Supreme Court to Review Cases Involving Overtime Exemption for Mortgage Loan Officers

On Monday, the U.S. Supreme Court accepted review of two lower court decisions of significant importance to the banking and financial services industries. The cases involve the question of whether mortgage loan officers are...more

Fenwick Employment Brief - June 2014

No Liability for Off-the-Clock Work Absent Employer Knowledge - A California appeals court refused to hold Kaiser Foundation Health Plan liable for alleged off-the-clock overtime about which it lacked knowledge. In...more

California Supreme Court Issues Favorable Decision for Employers in Duran v. U.S. Bank

The California Supreme Court has issued its long-awaited decision in Duran v. U.S. Bank. In a significant victory for employers, the Court unanimously agreed to overturn a $15 million judgment in a wage and hour class action...more

A closer look at the expansion of overtime

Last week’s announcement by President Obama of a planned increase to the number of employees who would be entitled to receive overtime pay set off a barrage of reactions. Now, let’s take a closer look at what it is all about....more

Many Exempt Employees With Salaries $30,000 To $50,000 May Soon Be Entitled To Overtime

On March 13, 2014, President Obama signed a memorandum directing the United States Department of Labor to revise the regulations concerning employees' eligibility for overtime pay under the Fair Labor Standards Act ("FLSA")....more

President Obama Directs DOL To Overhaul Federal Overtime Regulations

Ordinarily, changes to federal overtime regulations get very little notice in California since our State’s overtime laws are far more protective of employees than the federal Fair Labor Standards Act (FLSA). But President...more

Wages for Furloughed Employees

As the government shutdown winds on, many government contractors and clients have faced stop work orders from the government. Contractors have in turn furloughed their own idle employees. While this is a reasonable and...more

California Wage/Hour Update No. 3, July 2013: Court Clarifies Impact Of Multi-Tasking On Exempt Status

The salaried exemptions remain an actively litigated area in employment litigation. In order to be exempt from overtime and related regulations governing timekeeping and meal and rest periods, it’s not enough that an...more

Employment Law -- Jun 19, 2013

Exempt or Nonexempt, That is The Question - Employers who believe in multitasking could be facing unpaid overtime suits from managers after the California Court of Appeal ruled that a grocery store manager could not...more

It’s the Hours, Stupid: California Applies Quantitative Analysis to Exempt-Nonexempt Determination

In Heyen v. Safeway, the California Court of Appeal put the nail in the coffin of the federal approach to analyzing wage and hour issues in California. Because of Heyen, California employers and employees need to focus on...more

Second Circuit Overturns Class Certification Order in Assistant Branch Manager Overtime Case

On May 29, 2013, the United States Court of Appeals for the Second Circuit issued its opinion in Cuevas v. Citizens Financial Group, Inc. and RBS Citizens, N.A., Case No. 12-2832, reversing the Eastern District of New York’s...more

Did You Know…“Primary Purpose” Is The Appropriate Test To Determine Exemption Status Of An Employee

In Heyen v. Safeway, Inc., an action to recover unpaid overtime pay by a former assistant manager, the Court of Appeal affirmed the trial court’s award of overtime pay to Heyen, even though she was classified as an exempt...more

USDOL Still Barred From Challenging "Service Writer" Exemption

Readers will recall that, in April 2011, the U.S. Labor Department declined to adopt an interpretation proposed in 2008 that would have acknowledged the federal Fair Labor Standards Act overtime-exempt status of employees...more

New Jersey DOL Clarifies Overtime Exemption For Employees Of Common Carriers Of Passengers By Motor Bus

Under current state law, employees of a common carrier of passengers by motor bus are exempt from overtime. N.J.S.A. 34:11-56a4. However, the term “common carrier of passengers by motor bus” was never defined in the...more

Labor Letter - April 2013: Count The Cost Before Waging The War

When Sun Tzu wrote “The Art of War” in the sixth century B.C., he probably wasn’t thinking about how his advice would apply to employment law litigation in the 21st century, but he might as well have. One of his most famous...more

Misclassification of Workers: An Attempt to Save Could Cost Your Business A Bundle

In recent months, many business owners have noticed that their classification of workers is being closely scrutinized by a variety of federal and state regulatory agencies. Whether a worker is classified as an “employee” as...more

Courts Aren't Buying USDOL's "Service Writer", "Service Advisor" Comments

In April 2011, the U.S. Labor Department disavowed its 24-year-long acknowledgment that the federal Fair Labor Standards Act's Section 13(b)(10)(A) overtime exemption applies to automobile-dealership employees doing the...more

New California Law Affects Commission-Paid Employees

Beginning January 1, 2013, a new California law requires that employees who are paid on commission must be provided a written contract which sets forth the method by which the commission shall be computed and paid. This new...more

Key Issues to Evaluate When Conducting an Internal Wage and Hour Audit

In our last blog post in this series on the “Anatomy of a DOL Audit,” we discussed tips for conducting an effective internal wage and hour audit. Now we consider some key issues to evaluate during that process....more

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