White-Collar Exemptions

News & Analysis as of

Highly Compensated Employee Cannot Claim FLSA Violation Based on Employer's Wage Withholding

In order to claim most exemptions from overtime and minimum wage requirements under the Fair Labor Standards Act, employers must pay a guaranteed salary. Employers can only deduct from such salaries in very limited...more

Supreme Court Punts on Whether Service Advisors Are Exempt from FLSA Overtime Premium Pay

The United States Supreme Court recently issued its long awaited decision in Encino Motorcars, LLC v. Navarro. At issue in the case was whether “service advisors” employed by car dealerships are exempt from the Fair Labor...more

Supreme Court Passes Automobile Dealership Service Advisor Exemption Issue Back to Lower Court

On June 20, 2016, the U.S. Supreme Court declined to provide a definitive opinion on a pay issue that has concerned automobile dealerships for years. The question involves whether dealership service advisors fall under the...more

Insights Newsletter - June 2016

TO SUFFER OR PERMIT: How The Broad Scope Of The Fair Labor Standards Act Is Increasing The Risk Of Doing Business - 2016 is shaping up to be a troubling one for employers subject to the provisions of the Fair Labor...more

SCOTUS Says DOL Needs to Explain Itself If It Wants Deference to its Regulations

This week, the Supreme Court dealt a blow to the Department of Labor’s rulemaking procedures, criticizing the agency for explicitly changing its long-standing treatment of automobile service advisors as overtime exempt while...more

Five Key Issues Facing Employers in the Hospitality Industry

Hospitality employers, like employers in many other service-related industries, are challenged by having to persistently focus on staying competitive and increasing profits in oversaturated markets. However, focusing on these...more

Higher Education Highlights - Summer 2016

On March 21, 2016, the U.S. Department of Health and Human Services, Office for Civil Rights (“OCR”), announced the launch of the 2016 Phase 2 Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Audit...more

Supreme Court Criticizes Labor Department for Arbitrary Overtime Regulations

The Supreme Court ruled on June 20, 2016, that the U.S. Department of Labor’s (“DOL”) 2011 regulation removing a long-standing exemption to overtime pay for auto service advisors was “procedurally defective.” In a 6-2...more

Supreme Court Rejects Deference to DOL Regulation on FLSA Exemption Due to Failure to Provide Reasoned Explanation for Change

The Supreme Court granted certiorari in Encino Motorcars, LLC v. Navarro, No. 15-415 (June 20, 2016), to resolve a circuit court split regarding whether “service advisors” are exempt from receiving overtime pay under the Fair...more

Jocks and Docs: Classifying Postdocs and Coaches Under the DOL’s New Rules

On May 18, 2016, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued its final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer...more

Labor & Employment E-Note - June 2016

The scope of the federal Defend Trade Secrets Act enacted on May 11, 2016 extends well beyond employment issues. However, its impact on an employer's asset protection and enforcement program is quite significant. Please...more

Controversial Overtime Rule Comes in For a Landing

After two years of wait, debate and overall angst for employers across the country, the new overtime rules were announced on May 18, 2016, and published in the Federal Register on May 23, 2016. As we discussed in an earlier...more

Supreme Court Calls “Do Over” On FLSA Service Advisor Exemption Rule

In a 6 to 2 decision, the U.S. Supreme Court today continued the flip-flop-flip on determining whether an automobile dealership’s service advisors are exempt from the FLSA’s overtime requirements. The Court vacated and...more

Car Dealership’s Service Advisors’ Overtime Controversy Stalls in the Supreme Court

On June 20, 2016, the Supreme Court of the United States issued a ruling regarding the Fair Labor Standards Act’s (FLSA) overtime exemption for “any salesman, partsman, or mechanic primarily engaged in selling or servicing...more

Supreme Court Declines to Give Chevron Deference to Agency Regulation that Departed from Prior Agency Practice

On June 20, 2016, the U.S. Supreme Court issued a 6-2 opinion in Encino Motorcars, LLC v. Navarro et al., holding that the U.S. Department of Labor (Labor Department) was not entitled to receive Chevron deference with respect...more

The Supreme Court Shoots Down DOL Regulations, But Declines To Rule Whether Service Advisors are Exempt From Overtime Pay...

Yesterday, the United States Supreme Court issued its long-awaited decision in the Encino Motorcars, LLC v. Navarro case, that many hoped would resolve the issue as to whether Service Advisors at auto dealerships are exempt...more

The Spirit of the FLSA Haunts a Highly Paid Employee

As we’ve discussed on this blog before, the Supreme Court’s decision in Christopher v SmithKline Beecham Corp. had many layers. In holding that pharmaceutical sales representatives were subject to the FLSA’s outside sales...more

Dol Fumbles…Scotus Punts

On June 20, 2016, the U.S. Supreme Court issued its latest decision (read, “non-decision”) in Encino Motorcars, LLC v. Navarro. The case involves a decades-old question of whether auto dealership “service advisors” are exempt...more

The Employment Law Authority - May/June 2016

The minimum salary threshold to qualify for the executive, administrative, and professional exemptions to the Fair Labor Standards Act (FLSA) will more than double on December 1, 2016, from $23,660 per year to $47,476 per...more

Supreme Court Decides Encino Motorcars, LLC v. Navarro

On June 20, 2016, the U.S. Supreme Court decided Encino Motorcars, LLC v. Navarro, holding that a Department of Labor formal regulation that reversed the Department’s longstanding informal position exempting service advisors...more

U.S. Department of Labor’s New Overtime Rules Announced

That rumbling you may have felt this week wasn’t another Oklahoma earthquake. It was the reaction of employers to the new overtime regulations just released by the U.S. Department of Labor (“DOL”). Set to take effect December...more

Construction E-Note - June 2016

In a Q&A published on May 13, 2016 by the Orlando Business Journal, Peter Vilmos provides insight on Orlando’s biggest construction challenges and offers solutions to the various issues facing the industry. Among those...more

DOL's final rule increases minimum salary for overtime exemptions

The Fair Labor Standards Act (FLSA) generally requires employers to pay employees at least the federal minimum wage and overtime compensation for all hours worked over 40 in a workweek. Overtime pay must be at least 1½ times...more

Employment Law Reporter - June 2016: New Higher “White Collar” Exemption Salary Thresholds Take Effect on December 1st

Effective December 1, 2016, the minimum salary threshold to qualify as exempt from overtime under the executive, administrative, and professional exemption of the Fair Labor Standards Act (“FLSA”), often referred to as the...more

Changes to the Fair Labor Standards Act May Affect Employee Benefits

The United States Department of Labor recently issued a Final Rule updating the Fair Labor Standards Act (the “FLSA”) that includes an increase in the standard salary level and that will take effect December 1, 2016. Under...more

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