News & Analysis as of

Wage and Hour Administrative Exemption

Fisher Phillips

Is Your AI Prompt Engineer Exempt From Overtime Pay? An Employer’s 5-Step Guide to Avoiding Misclassification Mistakes

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As the AI revolution takes hold, employers are hiring for jobs we never imagined just a few years ago. This may leave you in the dark when trying to figure out if your new hires, including Prompt Engineers, will truly meet...more

Fox Rothschild LLP

The Murky FLSA Administrative Exemption Gets Clarification From The First Circuit, If Such A Thing Is Possible?

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Of the three white collar exemptions, the administrative exemption is the vaguest and the hardest for an employer to prove. In an important case, the First Circuit has weighed in on when that exemption applies and held that...more

Parker Poe Adams & Bernstein LLP

Administrative Exemption under FLSA Excludes Revenue-Generating Positions

When we review an employer’s overtime exemption classifications for various jobs, we frequently raise questions over whether employees qualify as exempt administrative workers under the Fair Labor Standards Act. Many...more

Fox Rothschild LLP

What To Do Before The White Collar FLSA Salary Level Changes-Don’t Be Caught Unawares!

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As is common knowledge, and as I wrote last week, the USDOL has proposed to raise the minimum salary required for exempt status for the Part 541 white collar exemptions to more than $1000 per week. Although that will...more

Fisher Phillips

Top Workplace Law Stories You May Have Missed from January 2023

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years — and this past...more

Fisher Phillips

Wage and Hour Update: Federal Appeals Court Introduces “Relational Analysis” Test for FLSA Administrative Exemption

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Employers operating in certain states should note that the 1st U.S. Circuit Court of Appeals just provided some clarity on the Fair Labor Standards Act’s (FLSA’s) administrative exemption. A federal appeals court held that...more

Fox Rothschild LLP

The Quagmire Of The Administrative Exemption: The Saga Of White Collar Production Workers

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Of the three so-called white collar exemptions, the administrative is the grayest and the most difficult for an employer to prove. This is because such a worker does not usually supervise anyone, which eliminates the...more

Bowditch & Dewey

The First Circuit Takes a Deeper Look into Employee Exemption Decisions

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On January 11, 2023, the First Circuit (the federal Court of Appeals covering MA, RI, NH, ME and Puerto Rico) issued its decision in Walsh v. Unitil Service Corp., which scrutinized an employer’s evaluation of whether its...more

Fox Rothschild LLP

Property Damage Investigators Do Not Meet FLSA Administrative Exemption Test: Another Lesson For Employers On This Grayest of Gray...

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As I have written numerous times, the administrative exemption is the grayest and most difficult for an employer to prove The tension between whether duties involve skill and experience or “discretion and independent...more

Foley & Lardner LLP

Eleventh Circuit Reminds Employers – Administrative Exemption Requires More than Just Exercising Discretion Over Significant...

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A recent case decided by the United States Court of Appeals for the Eleventh Circuit (covering Alabama, Georgia, and Florida) analyzed whether property damage investigators were appropriately classified as overtime-exempt...more

Littler

Eleventh Circuit Concludes that Property Damage Investigators Do Not Fall Under FLSA’s Administrative Exemption

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In Fowler v. OSP Prevention Group, Inc., the U.S. Court of Appeals for the Eleventh Circuit relied on Department of Labor guidance to conclude that property damage investigators do not qualify for the Fair Labor Standards...more

Jackson Lewis P.C.

Property Damage Investigators Are Non-Exempt “Production” Employees, 11th Circuit Holds

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Employees whose job it was to investigate and determine the likely cause of damage to the equipment of broadband service providers were misclassified as exempt by their employer, the Eleventh Circuit Court of Appeals recently...more

Fox Rothschild LLP

Business Development Managers Exempt Under Administrative Exemption: A Case Study Of This Nuanced, Vague Exemption

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I am always interested in administrative exemption cases because they are the hardest to prove for an employer. In an interesting case that illustrates the parameters of this exemption, the Eleventh Circuit has ruled (in...more

Littler

Eleventh Circuit Holds FLSA Administrative Exemption Applies to Business Development Managers Who Drove Business to Car...

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On April 1, 2022, the U.S. Court of Appeals for the Eleventh Circuit, in Brown v. Nexus Business Solutions, LLC affirmed a district court’s decision that business development managers who solicited and sold General Motors...more

Fox Rothschild LLP

FLSA Misclassification Case Highlights The Vagaries Of The Administrative And Professional Exemptions

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There are certain industries or fields where misclassification issues are prevalent because the nature of the duties of the workers “seems” to smack of exempt work but then there is a doubt as to whether they truly meet all...more

Seyfarth Shaw LLP

De-Muddying the Waters: WHD Addresses Exempt Status of Account Managers

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Seyfarth Synopsis: On January 8, the U.S. DOL’s Wage & Hour Division issued an opinion letter confirming the exempt status of Account Managers at a life sciences manufacturing company under the FLSA’s administrative...more

Proskauer - Law and the Workplace

DOL Issues Opinion Letters on Administrative Exemption and Ministerial Exception

The U.S. Department of Labor’s Wage and Hour Division (WHD) issued two new opinion letters on January 8, 2021, bringing the number of “lame duck” wage and hour opinion letters—issued since Election Day 2020—to six....more

Fisher Phillips

California Financial Advisors Lacking Fixed And Predetermined Salary Not Subject To Administrative Salaried Exemption

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In California, all employees are presumed to be entitled to overtime, meal periods, and other wage-and-hour regulations unless an employer can prove that its employees “plainly and unmistakably” fall within the terms of an...more

Payne & Fears

Commission-Only Compensation Plan Fails California's Salary Basis Test

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Under California law, employers must pay their employees overtime rates unless an exemption applies. One such exemption, the “administrative” exemption, excludes from state overtime requirements an employee primarily engaged...more

Jackson Lewis P.C.

Pennsylvania Expands Overtime Pay Beyond Federal Thresholds

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This past weekend, Governor Tom Wolf’s new legislation went into effect, expanding Pennsylvania’s Minimum Wage Act (MWA) regulating overtime pay. The legislation increases the minimum salary an employee can earn and still be...more

Fox Rothschild LLP

USDOL States It Will No Longer Routinely Seek Liquidated Damages In Administrative Investigations: A Return To Normalcy

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The last several years have been quite worrisome to me, as a management side practitioner, on the issue of USDOL agency-initiated liquidated damages assessments. It used to be that only when the USDOL took an entity to court...more

Seyfarth Shaw LLP

An Employee Not Actually Engaged in the Company’s Core Function—its Primary Revenue Generator—Can Be Administrative Exempt

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Seyfarth Synopsis: In a clarification of the administrative/production dichotomy, the U.S. Circuit Court of Appeals for the Seventh Circuit has held that whether a duty is exempt under the FLSA’s administrative exemption may...more

Fisher Phillips

3 Critical Wage And Hour Questions For Every Hospitality Employer

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The hospitality industry is an increasingly popular target for enforcement actions by government agencies, not to mention lawsuits by plaintiffs’ attorneys. To help avoid three common wage and hour issues that come up too...more

Blank Rome LLP

PA Raising Salary Threshold for White Collar Exemptions—Déjà Vu All Over Again … or Worse?

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Here we go again, Pennsylvania employers, but this time on the local front, rather than nationally. Following up on Governor Wolf’s announcement in January that Pennsylvania needed to “modernize” its outdated wage and hour...more

Fox Rothschild LLP

Renaissance Of USDOL Opinion Letters Is An Encouraging Development

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I have often blogged about the usefulness of USDOL (or any DOL) Opinion Letters and I have lamented that this procedure was stopped under President Obama. I hailed that the new Secretary of Labor was going back to it. Well,...more

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