Wage and Hour Exempt-Employees

News & Analysis as of

Two Good Reasons to Keep Your Company's Job Descriptions Current and Accurate

Job descriptions often fall to the bottom of the human resource “to do” list. An audit of almost any company’s job descriptions will reveal job descriptions that are outdated, vague and carried forward from the company’s...more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

No Wishes Granted for Aladdin—Class Cert Denied

In the Central District of California—often known as a magical kingdom for plaintiffs in wage-hour lawsuits—Judge Fernando Olguin brought everyone back to reality by denying class certification. Plaintiff Aladdin Zackaria...more

Third Circuit Upholds the Motor Carrier Exemption for Drivers Who Did Not, But Reasonably Could Have Been Expected to, Cross State...

Are drivers of a motor carrier who rarely or never drive the carrier's interstate routes covered by the motor carrier exemption of the Fair Labor Standards Act?  Yes, according to the U.S. Court of Appeals for the Third...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

Timekeeping For Exempt Employees

Should an employer keep records of the time worked by employees who qualify for a federal Fair Labor Standards Act minimum-wage and/or overtime exemption? At the risk of giving the proverbial "lawyer's answer", it depends. Is...more

Proposed Rule Expected for White-Collar FLSA Overtime Exemptions

Secretary of Labor Thomas Perez announced yesterday that the U.S. Department of Labor has submitted a proposed rule on the white-collar FLSA overtime exemptions to the Office of Management and Budget (OMB)....more

FLSA Exemption Revisions Sent To OMB

U.S. Secretary of Labor Tom Perez has announced that proposed new definitions for the federal Fair Labor Standards Act's Section 13(a)(1) executive, administrative, professional, outside-sales, and derivative exemptions have...more

DOL “Springs” Its Part 541 Proposal for Review

On Tuesday, May 5, 2015, the U.S. Department of Labor (DOL) announced that it had sent its draft proposed part 541 overtime regulations to the Office of the Information and Regulatory Affairs (OIRA) at the Office of...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

Wage and Hour Basics Series: Penalties for FLSA Non-Compliance

Periodically this year, we have discussed some of the fundamentals of wage and hour law, starting with a general review of the white collar exemptions. We will continue to periodically review some of the more fundamental...more

A Win for Employers: Court Denies Class Certification of Rest Break Claim Where Plaintiff Alleged Employer Did Not Have a Rest...

A recent federal district court decision denying a motion for class certification of wage-and-hour claims reflects continuing disagreement among courts in California regarding the suitability for class treatment of meal and...more

The Big and Small Implications in Perez v. Mortgage Bankers Association

There are two important takeaways from Perez v. Mortgage Bankers Association, one with a broad scope and the other much narrower. The broader ruling exempts agency interpretations of laws and regulations from any notice and...more

FLSA Exemption Changes: Some Compensation Alternatives For Salaried Employees

No one knows when the U.S. Labor Department will eventually implement revised definitions of the federal Fair Labor Standards Act's Section 13(a)(1) exemptions (we have covered these developments earlier). But whenever this...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

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

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

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

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

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