Exempt-Employees

News & Analysis as of

Attn. General Counsel: Big Changes are Coming to Wage-and-Hour Law

The White House has already taken steps to propel no less than three significant changes in wage-and-hour law, all of which could have wide-ranging effects on employers of all sizes. The likely changes include an increase in...more

Claims Handlers: It’s Time to Adjust Our Claims!

Many insurers have a longstanding practice of paying claims adjusters a set weekly salary, regardless of the number of hours they actually work. The practice has support in federal labor regulations; the regulations...more

Third Circuit: Federal Court Should Decide Whether An Arbitration Clause Authorizes Classwide Arbitration – Not The Arbitrator

The Third Circuit recently was presented with the question of whether, in the context of an otherwise silent contract, the availability of classwide arbitration is to be decided by a court rather than an arbitrator. The...more

Fair Warning: 10 Common Mistakes to Avoid under the Fair Labor Standards Act

Most healthcare employers have probably heard of the Fair Labor Standards Act ("FLSA") and most probably think it is pretty simple. Doesn't that law just deal with prohibiting child labor and paying overtime wages to hourly...more

FLSA Exemptions And "Overtime Rights"

We continue to follow developments relating to President Obama's directive that the U.S. Labor Department "modernize and streamline" its regulations governing the federal Fair Labor Standards Act's Section 13(a)(1) executive,...more

Partial-Day Leave Deductions Lawful for Exempt Employees

A California court of appeal recently confirmed that employers may require exempt employees to use accrued leave for partial-day absences, even if shorter than four hours. In Rhea v. General Atomics, plaintiff Lori Rhea, on...more

Fenwick Employment Brief - August 2014

Partial-Day Leave Deductions Lawful for Exempt Employees - A California court of appeal recently confirmed that employers may require exempt employees to use accrued leave for partial-day absences, even if shorter than...more

Employers May Deduct from Vacation Pay for Exempt Employee's Partial Day Absences of Less than Four Hours

An employee’s exempt status under both federal and California law is dependent on the employee’s duties falling within one of the exemptions (administrative, professional, executive) and the employee being paid on a “salary...more

FLSA Collective Action Waivers In Separation Agreements May Not Be Valid In 6th Circuit

Employees discharged as part of a company restructuring can participate in a collective action lawsuit for unpaid overtime wages under the Fair Labor Standards Act (FLSA) despite waiving their collective action rights in...more

Feds Get Technical! Technical! (Sung to Olivia Newton John’s “Let’s Get Physical” of course)

We already know that California’s exempt/non-exempt classification scheme is a complicated system of checks and balances that takes most employers the help of an attorney to traverse. Well, just so we don’t get overly...more

California Supreme Court Clarifies Commissioned Employee Exemption

Peabody v Time Warner Cable, Inc. (July 14, 2014, No. S204804) 2014 Cal Lexis 4755, came to the California Supreme Court from the Ninth Circuit, through a certification procedure that is used when a question can determine the...more

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

Third Circuit: Availability of Classwide Arbitration is an Issue for the Courts – Not Arbitrators – Unless the Parties Agreed...

Wednesday, the Third Circuit held that the determination of whether an agreement allows classwide arbitration is a question of arbitrability for the courts “unless the parties unmistakably provide otherwise.” Opalinski v....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

Court Endorses PTO Use for Exempt Employee Partial-Day Absences

Employers often confuse the strict rules limiting the docking of exempt employees’ salary with different rules relating to partial-day deductions under vacation or “paid time off” (PTO) policies. A California appellate court...more

Employers May Require Exempt Employees to Use Accrued Leave for Absences Shorter Than Half a Day

On July 21, 2014, a California Court of Appeal held that overtime exempt status is not undermined by requiring employees to use accrued leave for absences of less than half a day. ...more

Captain Obvious Issues Most Obvious FLSA Decision of 2014 (So Far...)

If you have been anywhere near a TV or radio over the past few months, you have probably seen or heard the ads for Hotels.com featuring Captain Obvious. If you’re from the Midwest, and Indiana in particular, it has probably...more

California Law Does Not Prohibit Employers From Deducting From Exempt Employees' Vacation Leave Credits Even For Absences Of Less...

On July 21, 2014, the California Court of Appeal's Fourth Appellate District, Division One, affirmed the trial court's decision in Rhea v. General Atomics (July 21, 2014, D064517 ) ---- Cal.App.4th ---). In reaching its...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

California Supreme Court Limits Application of Commissioned Employee Exemption

On July 14, 2014, the California Supreme Court held in Peabody v. Time Warner Cable, Inc. that employees qualify for the California “commissioned employee” exemption in a pay period only if they receive “earnings [that]...more

Department of Labor to Revise Federal Regulations Interpreting the Right to Receive Overtime Pay under the Fair Labor Standards...

In a March 2014 Memorandum, President Obama directed the Department of Labor to “modernize and streamline” the regulations that dictate when an employer may lawfully designate an employee as exempt from overtime pay under the...more

California Supreme Court Clarifies Requirements of Commissioned Employee Exemption

In recent years there has been substantial litigation regarding whether and how employers may satisfy California minimum wage requirements for compensation plans involving commissions. In Peabody v. Time Warner Cable, Inc.,...more

When Numbers Lie: The Limits of Statistical Methodology in California Class Action Management

Courts that oversee class actions can use class sampling and other statistical methods to manage litigation involving large numbers of plaintiffs and the vast amount of data associated with them. In California, however, those...more

Federal Courts Continue To Find Claims Adjusters Exempt

We have previously discussed how, over the past 10+ years, courts have increasingly recognized that insurance claims adjusters are exempt under the Fair Labor Standards Act (FLSA). The recent cases of Estrada v. Maguire Ins....more

California Supreme Court: Newspaper Carriers Can Proceed With Class Action Challenging Independent Contractor Status

On June 30, 2014, the California Supreme Court issued a decision addressing how trial courts should determine the appropriateness of class certification in cases where workers claim they were improperly classified as...more

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