Unpaid Overtime

News & Analysis as of

California Appellate Court Reverses Trial Court, Grants Motion To Compel Arbitration

A state appellate court in California reversed a trial court’s decision to deny defendant Santa Lucia Preserve Company’s (“Santa Lucia”) motion to compel arbitration, holding that plaintiffs failed to prove that the...more

Will DOL's Overtime Rule Revisions Fix the Outside Salesperson Exemption?

The Department of Labor’s long-anticipated revisions to its Part 541 overtime exemption regulations await Office of Management and Budget review before issuance in proposed form. The new rules follow President Obama’s...more

Prepare Now for New FLSA “White-Collar” Exemption Regulations

The U.S. Department of Labor’s proposed regulations dramatically reducing the number of employees who qualify for the white-collar overtime exemptions to the federal Fair Labor Standards Act are expected to be announced...more

California Legislative Update

The end of the first week of June is the deadline for California bills to pass out of their house of origin. The following are significant bills affecting private-sector employers in the Golden State that have advanced to...more

Spring Regulatory Agenda Sets Forth New Deadlines, Proposals

In keeping with past practice, federal agencies released their spring regulatory agendas on the eve of a holiday weekend. These semiannual reports list all of the federal agency regulations currently under development or...more

Court Puts the Brakes on Overtime for Drivers—No Interstate Trips? No Problem!

The Third Circuit put a screeching halt to the contention that drivers must actually cross state lines to be exempt from overtime under the Motor Carrier Act (“MCA”). In Resch v. Krapf’s Coaches, Inc., the court ruled that...more

Wage-Hour Audits: Lessons Learned From Chipotle’s Heartburn

Beloved burrito-maker Chipotle Mexican Grill has found itself in a situation messier than the finger foods that brought the company more than $4 billion in revenue last year. A magistrate judge in Scott v. Chipotle Mexican...more

Avon Calling: Employees Allege Overtime Exemption Misclassification

Avon categorizes all of its district service managers (DSMs) under the “administrative” exception of California law that requires employers to pay overtime wages. DSMs are the Avon employees who recruit and train the...more

Supreme Court Declines to Hear Severance Agreement FLSA Collective Action Waiver Case

The Supreme Court has declined to grant review of a Sixth Circuit decision that cast significant doubt on the effectiveness of an employee’s waiver of Fair Labor Standards Act (FLSA) collective action rights. Last summer, the...more

DOL Sends New FLSA Regulations to OIRA for Final Review Before Draft Publication

Since last spring, we have been following developments in the oft-delayed Fair Labor Standards Act (FLSA) regulations rewrite by the Department of Labor (DOL). Yesterday, we received word that the DOL has completed a draft of...more

April 2015 Independent Contractor Compliance and Misclassification News Update

The leading news in the area of independent contractor compliance and misclassification in April 2015 is the settlement by Macy’s and its logistics company in New Jersey with the delivery drivers and their helpers used by...more

FLSA Exemption Changes: More On Salaried-Employee Alternatives

Our April 27 post gave an example of how to reduce the financial impact of a previously-exempt employee's becoming subject to the federal Fair Labor Standards Act's overtime requirement. The illustration had to do with the...more

Overtime Changes Threaten the Exempt Status of Retail and Hospitality Managers

The National Retail Federation’s (NRF) Committee on Employment Law held its spring meeting last week, and one of the hottest topics on the minds of the attendees concerned the impact that the U.S. Department of Labor’s...more

Oil Field Employers Post-McMaster: Still Searching for Clarity on the TCA’s Impact on the Motor Carrier Act Exemption

In McMaster v. Eastern Armored Services, Inc., No. 14-1010 (March 11, 2015), the Third Circuit Court of Appeals issued one of the first federal appellate court opinions discussing the SAFETEA-LU Technical Corrections Act of...more

Eleventh Circuit Scraps Employer’s Defense in FLSA Claim for Overtime Wages

May an employee recover under the Fair Labor Standards Act for unpaid overtime even if it was his own fault that the overtime was unpaid? The Eleventh Circuit recently answered “Yes,” in the case of Bailey v. Titlemax of Ga.,...more

Brace Yourselves: Major Overtime Regulations Coming Soon

The Department of Labor has been promising an overhaul of the white collar exemption regulations for over a year. The regulations were originally planned to be released in the Fall of 2014, but were pushed back to February...more

Ninth Circuit Finds Auto 'Service Advisors' Not Exempt Under FLSA

In Navarro v. Encino Motorcars, LLC (9th Cir. Mar. 24 2015), the U.S. Court of Appeals for the Ninth Circuit addressed an issue of first impression in the Circuit: whether individuals who worked for automobile dealerships as...more

Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership "Salesman" Exemption; Section 7(i) Exemption Is Still...

The Ninth Circuit U.S. Court of Appeals (with jurisdiction over the states of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington) has ruled in Navarro v. Encino Motorcars, LLC that Service...more

Court Rejects Kentucky Wage-Hour Representative Actions

The Kentucky Wages and Hours Act provides the mechanism for pursuing redress for minimum-wage or overtime violations under that law. KRS 337.385 provides, in pertinent part, that "[s]uch action may be maintained in any court...more

"Comp Time" is Attractive to Many Employers, but Serves as a Trap for the Unwary

Many employers seek to avoid paying overtime compensation by providing compensatory time off, or “comp time,” to non-exempt employees who work more than eight hours in a day or more than 40 hours per week. Although...more

New FLSA Regulations Set to be Released in First Quarter of 2015 Likely to Change America’s Overtime Pay Landscape

In March 2014, President Obama issued an Executive Order directing the Secretary of Labor to “update and modernize” the overtime exemption rules under the Fair Labor Standards Act (FLSA), (the “Act”), 29 U.S.C. 201 et seq., a...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

Employment Status of Cosmetology Students Is Not So Cut and Dry

The issue of whether "interns" are employees entitled to wages has been at the forefront of employment litigation over the past couple of years. Similar to interns, cosmetology students are now filing suits against their...more

Third Circuit Rules That Drivers Of Vehicles Weighing Less Than 10,000 Pounds Must Be Paid Overtime Under FLSA

In a new decision, the first on the subject by a federal appellate court, the Third Circuit has ruled in McMaster v. Eastern Armored Services Inc. that drivers who spend a portion of their work driving “covered” commercial...more

Federal Wage Claims? That's The Easy Part!

Retailers are all too familiar with collective actions filed under the Fair Labor Standards Act (FLSA) making claims for unpaid overtime based on alleged misclassification of employees as exempt, working off the clock, or not...more

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