News & Analysis as of

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

Top franchise matters of 2014

DLA Piper IPT partners Barry Heller, John Verhey and John Hughes recently conducted a webinar reviewing 2014’s top franchise decisions. Three significant 2014 matters are summarized below. 1. In Patterson v. Domino’s...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

FLSA Claims Were Properly Dismissed At Pleadings Stage

Greg Landers, who was employed as a cable services installer, brought suit individually and on behalf of other similarly situated persons, alleging that Quality failed to pay him and the other employees minimum and overtime...more

DOL Secretary Tells Congress New FLSA Regulations Are Delayed, Outlines Department Priorities

Last week, Secretary of Labor Thomas Perez testified during a hearing held by the House Education and Workforce Committee to discuss President Obama’s budget proposal for the Department of Labor. Secretary Perez’s testimony...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

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

FLSA lawsuits on the rise

Statistics released earlier this month by the Administrative Office of the U.S. Courts show an 8.8% increase in the number of Fair Labor Standards Act (“FLSA”) cases in the year ending in September 2014 as compared to the...more

U.S. Supreme Court Upholds Validity of Department of Labor’s Interpretation on Overtime Pay for Mortgage Loan Officers

For the past several years, an action by the Mortgage Bankers Association has been brewing in the courts challenging the U.S. Department of Labor (“DOL”) for issuing contradictory opinion letters on whether mortgage loan...more

2015 Employment Law Issues Tournament: Second Round Results and Recaps

If you thought the Round of 64 was wild, then wait until you see what happened during the second round. Let’s just say that some shocking upsets left many a bracket busted wide open....more

Supreme Court Ruling Validates DOL’s 2010 Interpretation Regarding FLSA Status of Mortgage-Loan Officers

The Supreme Court recently rejected a challenge to the validity of a 2010 interpretation by the U.S. Department of Labor (the “DOL”), which had concluded that the administrative exemption of the Fair Labor Standards Act...more

Workers Win $185 Million for Retailer's Wage and Hour Violations in Understaffed Stores

The Pennsylvania Supreme Court recently upheld a $185 million judgment against a national retailer for state wage-and-hour violations, highlighting the risks employers face when they try to maximize profits at the expense of...more

Supreme Court Holds Notice-and-Comment Rulemaking Not Required to Change An Interpretive Rule

When federal agencies change their interpretive rules, they are exempt from the formal notice-and-comment rulemaking requirements of the Administrative Procedures Act (APA), says the Supreme Court in its recent ruling in...more

Supreme Court Rules That Agency Interpretive Rules Are Not Subject to Notice-and-Comment Rulemaking

Recently, the Supreme Court issued a unanimous judgment that government agency "interpretive rules" are not subject to notice-and-comment rulemaking, but cautioned that those same rules do not carry the "force and effect of...more

Supreme Court Confirms That Agency Interpretative Rules Do Not Require Notice and Comment

In a March 9, 2015, decision in Perez v. Mortgage Bankers Ass'n., the U.S. Supreme Court unanimously held that an interpretative rule issued by an administrative agency does not require notice and opportunity for comment,...more

Too Many People Using Social Media?

Well, maybe there aren’t too many people using social media in general. But, perhaps, that is the lesson to be taken from a recent federal court decision that addressed the intersection of one statute’s purpose and the...more

Third Circuit Says Trucker Entitled to Overtime

Professional motor carriers generally are exempt from overtime payment under the Fair Labor Standards Act (“FLSA”). ...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

D.C. DOES Provides Additional Guidance On The D.C. Wage Theft Prevention Amendment Act And Reveals New “Zip Code” Program For D.C....

On Thursday, March 12, 2015, the District of Columbia Department of Employment Services (“DOES”) hosted its first Webinar regarding the D.C. Wage Theft Prevention Amendment Act (the “Act”), and its subsequent amendments. ...more

U.S. Supreme Court Notice, Comment Not Required for Federal Agencies Interpreting Regulations

The U.S. Supreme Court decided in Perez v. Mortgage Bankers Association that federal agencies are not required to use the Administrative Procedure Act's (APA) notice and comment procedures when issuing or making changes to...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

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

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

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

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