Exempt-Employees

News & Analysis as of

9th Circuit Splits with 4th, 5th Circuits, Finds Auto Dealer Service Advisors Not Exempt Under FLSA

Reversing a district court decision, and declining to follow decisions from a number of other courts, including the Fourth and Fifth Circuits, the Ninth Circuit has deferred to the Department of Labor's (DOL) "flip-flopped"...more

Must Management Justify Treating Exempt Employees As Non-Exempt?

For years, The Big Corporation has treated its Department Supervisors as meeting all of the requirements for the executive exemption from the federal Fair Labor Standards Act's minimum-wage and overtime requirements. However,...more

Ninth Circuit Defers to DOL View that Automobile Service Advisors Have No Industry Overtime Exemption

When taking in your car to the dealership for repairs, you are usually greeted by a service advisor. Service advisors compile information needed for the mechanic to diagnose and repair the vehicle. They also provide cost...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

Employment Flash - March 2015

In This Issue: - Supreme Court Rejects Sixth Circuit Yard-Man Vested Benefits Presumption - Supreme Court Revives Pregnancy Discrimination Light Duty Case - NY Wage Theft Protection Act Amended - Senate...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

Still Waiting for Those New Proposed FLSA Overtime Regulations

You may recall that over a year ago, President Obama directed the Secretary of Labor to “modernize and streamline” the existing Fair Labor Standards Act (FLSA) overtime regulations, specifically with respect to the “white...more

Everything Must Go? Dealership's Service Advisors Not Exempt from Overtime

Classifying employees as exempt or non-exempt can prove to be an arduous task for some employers. For others, however, the classification is easy, particularly where the state or federal authorities expressly spell out the...more

Proposed FLSA Exemption Changes Still In Limbo

Employers await with bated breath the release of the U.S. Labor Department's proposed new definitions for the federal Fair Labor Standards Act's Section 13(a)(1) executive, administrative, professional, outside-sales, and...more

Exempt or Not? Service Advisors

The Fair Labor Standards Act (“FLSA”) requires payment of a minimum hourly wage and overtime, unless an employee fits within one of many exemptions. In some parts of the United States, courts had ruled that automobile service...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

U.S. Supreme Court Weighs in on Labor Department’s Interpretation of Overtime Rules for Mortgage Loan Officers

We know that many of you are aware of the U.S. Supreme Court's decision in Perez v. Mortgage Bankers Association. The Court held that the U.S. Department of Labor was not required to follow notice and comment procedures in...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

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

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

Potential New Salary Minimum for Exempt Employees

The test for classifying employees as exempt from the Fair Labor Standards Act’s overtime requirements may be briefly summarized as follows: the employee must be paid on a salary basis (i.e., receive the same base salary...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

Can Mortgage Loan Officers Still be Exempt from FLSA Overtime Requirements?

On March 9, 2015, the United States Supreme Court issued an opinion upholding a 2010 Department of Labor (DOL) interpretative rule finding that mortgage loan officers are generally not administratively exempt from Fair Labor...more

Supreme Court Sides with DOL and Overturns Longstanding DC Circuit Ruling Under Administrative Procedure Act

Perez v. Mortgage Bankers Assn., No. 13 1041: On Monday, March 9, 2015, the Court ruled that a longstanding decision from the DC Circuit under the Administrative Procedure Act (“APA”) was incorrectly decided in contravention...more

Supreme Court Sides with the DOL Regarding Interpretative Rules

In a unanimous decision on Monday, March 9, 2015, the United States Supreme Court gave the Department of Labor (DOL) broad discretion to revise interpretive guidance with little notice. ...more

Supreme Court Update: Perez V. Mortgage Bankers ASS'n (13-1041), Dep't Of Transportation V. ASS'n Of American Railroads (13-1080)...

It's been a great week for admin-law junkies; maybe not so much for the D.C. Circuit, which suffered two unanimous reversals in Perez v. Mortgage Bankers Ass'n (13-1041) and Dep't of Transportation v. Ass'n of American...more

Repaid Deduction Saves Day

The Fair Labor Standards Act requires employees to be paid on a salary basis, not hourly, to be exempt under the so-called white collar exemptions, e.g. for executive or administrative employees. ...more

Blizzards, Hurricanes, and That Dreaded TORCON Index

Many “it was the worst day of my life” stories begin with a weather event. I will never forget sitting with a client in an early April morning mediation several years ago when she received a call on her cell phone. She was...more

The Merry-Go-Round Continues

The Supreme Court says federal agencies may reverse their legal interpretations, without giving notice to the public of a proposed change and considering comments on the proposal. Perez v. Mortgage Bankers Association, No....more

Workplace Challenges in 2015, Part 4 of 5: Monitoring Wage and Hour Compliance Remains Paramount for Employers Seeking to Avoid...

Recently, Mintz Levin held a seminar in New York City that addressed some of the major challenges employers are facing in the New Year. Our program contained segments on New York City’s paid sick leave law, effective...more

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