After years of litigation, including two trips to the U.S. Supreme Court, on whether service advisors who work in an automobile dealership are exempt from overtime under the Fair Labor Standards Act (FLSA), the Court finally...more
4/4/2018
/ Appeals ,
Automotive Industry ,
Car Dealerships ,
Congressional Intent ,
Exempt-Employees ,
Fair Labor Standards Act (FLSA) ,
Legislative History ,
Navarro v Encino Motorcars ,
Over-Time ,
Reversal ,
Salespersons ,
SCOTUS ,
Service Advisors ,
Statutory Construction Test ,
Wage and Hour
An amendment to the Fair Labor Standards Act (FLSA) in the omnibus budget bill, “Consolidated Appropriations Act, 2018,” passed by Congress and signed by President Donald Trump on March 23, 2018, provides that an employer...more
Mistakes happen. But when those mistakes result in a violation of the Fair Labor Standards Act, what is an employer to do? Pay twice the amount of wages owed to cover both back wages and an amount equal to liquidated...more
Last week the Supreme Court heard – for the second time – oral argument in Encino Motorcars, LLC v. Navarro. At issue is whether “service advisors” at dealerships are covered by what’s known as the “automobile dealer”...more
The Department of Labor has decided to align its analysis under the Fair Labor Standards Act (FLSA) of the intern-vs.-employee determination with that of the majority of federal appellate courts to have addressed the issue,...more
Employers would be expressly permitted to require servers and other tip-earning employees to share their tips with employees working in the kitchen and other “back of the house” employee, but only when the employer does not...more
After effectively “punting” on the issue last year, the U.S. Supreme Court has again granted certiorari to resolve a circuit split regarding whether “service advisors” at automobile dealerships are exempt from receiving...more
Finding it wholly inconsistent with the statute and the regulation it purports to interpret, the Ninth Circuit has held invalid the United States Department of Labor’s “80/20” tip credit rule, or “20% Rule,” which limits the...more
As anticipated following last week’s decision by the U.S. District Court for the Eastern District of Texas, striking down the Department of Labor’s May 2016 Final Rule regarding the FLSA’s “white collar” overtime exemptions,...more
The Department of Labor’s May 2016 Final Rule, which would have more than doubled the minimum salary necessary to satisfy the “executive, administrative or professional” (the “EAP” or “white collar”) overtime exemptions under...more
Former cosmetology students are not employees entitled to pay under the FLSA and various state laws, the Seventh Circuit holds, rejecting the Department of Labor’s six-factor test but declining to adopt any bright-line test....more
In a case of first impression in the Second Circuit, a court in the U.S. District Court for the Southern District of New York has held private settlements under the FLSA entered into prior to a lawsuit being filed do not...more
The City of Chicago lacked either actual or constructive knowledge that members of the Chicago Police Department were performing after-hours work on their smartphones, the Seventh Circuit Court of Appeals has ruled, affirming...more
As a preliminary step to replacing the December 1, 2016, Fair Labor Standards Act “white collar” exemptions Final Rule, the Department of Labor has issued a Request for Information (RFI) seeking public comment on a wide...more
Mortgage underwriters do not qualify for the Fair Labor Standards Act’s administrative exemption because they are more appropriately characterized as “production” employees, according to the U.S. Court of Appeals for the...more
The government has asked the Fifth Circuit Court of Appeals to reverse a Texas District Court Judge who issued a nationwide preliminary injunction blocking the Department of Labor’s Final Rule which would have more than...more
The U.S. Department of Labor announced today that it will reinstate the Department’s long-standing practice of issuing opinion letters to employers and employees regarding application of the Fair Labor Standards Act. The...more
Private-sector employers soon may be able to grant compensatory time in lieu of overtime pay to employees.
On May 3, 2017, the House of Representatives passed the Working Families Flexibility Act (H.R. 1180, S. 801) by a...more
Before the election the Department of Labor asked the Fifth Circuit Court of Appeals to expedite its appeal regarding the validity of the DOL’s Final Rule, which increased the salary level for the white collar exemptions. ...more
In the latest round in the litigation between 21 States, led by the State of Nevada, and the Department of Labor regarding the Final Rule, the State Plaintiffs filed their appeal brief today with the Fifth Circuit, urging the...more
The U.S. Supreme Court in 2016 granted certiorari in Encino Motorcars, LLC v. Navarro to resolve a circuit split regarding whether “service advisors” at automobile dealerships are exempt from receiving overtime under the Fair...more
1/10/2017
/ Car Dealerships ,
Certiorari ,
Chevron Deference ,
Department of Labor (DOL) ,
Exempt-Employees ,
Fair Labor Standards Act (FLSA) ,
Navarro v Encino Motorcars ,
Over-Time ,
SCOTUS ,
Service Advisors ,
Wage and Hour ,
White-Collar Exemptions
When two lawsuits were filed in Texas seeking to block the Department of Labor’s new overtime rule, which more than doubles the required salary level to qualify for the Fair Labor Standards Act “white collar” exemptions, few...more
For more than three hours on November 16, 2016, Obama-appointed Judge Amos L. Mazzant, III, of the U.S. District Court for the Eastern District of Texas – Sherman Division, heard oral argument on the preliminary injunction to...more
Twenty-one states, led by Texas and Nevada, have filed a lawsuit against the Department of Labor seeking a preliminary and permanent injunction declaring unlawful the DOL’s Final Rule amending the overtime exemption for...more
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