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Wage & Hour – Development & Highlights To Highlight Recent and Noteworthy Developments In Cases And Regulations on Wage and Hour Laws That Affect Large and Small Businesses

Tag Archives: exemption

Proposed Rule Change By the Department of Labor Could Negatively Affect The Elderly and Disabled

Posted in Exemptions

The National Association of Medicaid Directors (“NAMD”) is challenging the proposed rule to extend minimum wage and overtime protections to home health care workers.  Currently, home health care workers are exempt from the minimum wage and overtime requirements under the Fair Labor Standards Act.  Pursuant to the proposed change, any home health care work assigned… Continue Reading

State Exemptions Need Not Mirror Federal Exemptions

Posted in Exemptions

The federal motor carrier exemption applies to drivers, mechanics and other employees whose duties affect safety and who work in interstate commerce.  This exemption applies to truck companies and bus companies.  Any state is free to adopt this exemption, in toto, or to modify it or, in fact, not adopt it at all. The New… Continue Reading

Just In Time For Tax Season–Auditors Test Professional Exemption Against Price Waterhouse in Yet Another Class Action

Posted in Class Actions, Exemptions

I have noticed that there are not many lawsuits (e.g. class actions) brought that test the limits of the professional exemption.  That exemption, geared towards anyone with an advanced degree (lawyer, doctor, CPA, engineer) is fairly well defined and a lawsuit easily defended.  That rule, however, has its exceptions, as demonstrated by the granting of… Continue Reading

Validity of USDOL 2010 White Paper On Loan Officers Being Challenged: Let’s Start The New Year Off On The Right Note!

Posted in Exemptions

The status of employees in the financial services industry has been the subject of numerous lawsuits and controversies.  The “new” FLSA regulations (from 2004) even postulate that a financial services employee can fit the administrative exemption, if their main job duty is not the selling of financial products.  Then, in March 2010, the US Department… Continue Reading

Professional Exemption Defense Dooms Large FLSA Collective Action Against KPMG

Posted in Class Actions, Exemptions

A federal judge has dismissed a FLSA class action lawsuit where the theory was the group of employees was improperly classified as exempt.  There were more than one thousand current and former KPMG LLP employees who could have potentially been class members.  The liability would have been, to put it mildly, geometric.  The case is… Continue Reading

Large Damages Award In Starbucks Tip Pool Case Demonstrates (Again) Danger of Managers Sharing In These Pools

Posted in Class Actions, Exemptions

I have written before on these tip pool cases involving Starbucks and other restaurants where the tip credit (which allows an employer to pay a sub-minimum wage) is destroyed.  This happens because “improper” people (i.e. managers) share tips along with rank-and-file employees.  Suffice to say that the liability in these cases can be astronomical, because… Continue Reading

Dollar Tree Wins De-Certification of FLSA Class Due To Need For Individual Scrutiny

Posted in Class Actions, Exemptions

Maybe a trend is developing.  Maybe employer-defendants are starting to turn the tide of what seems like an incessant trend towards the granting of conditional certification in FLSA cases and the maintenance of those classes in the face of motions to de-certify.  I say this because a federal district court in Alabama recently decertified a… Continue Reading

Nationwide Nursing Home Chain Hit With FLSA Collective Action That Targets The Nature of The “Fee Basis” Of Payment

Posted in Class Actions, Exemptions

The health care industry seems to draw more than its fair share of class action lawsuits.  In another example of this trend, home-health workers have filed a FLSA class action in federal court, alleging that their employer misclassified them as exempt and thus improperly denied them overtime.  The case is entitled Cook v. Amedisys, Inc…. Continue Reading

“Relationship Bankers” May Find New Relationship With Overtime Monies In Off Beat FLSA Collective Action

Posted in Class Actions, Exemptions

There have been literally dozens and dozens of cases involving the exempt status of bankers, loan officers and other similar job classifications.  In a scenario that I find somewhat off beat, a HSBC Bank employee has filed a proposed collective FLSA action.  The category of employee are so-called “relationship bankers,” which is not the traditional… Continue Reading

The Danger In Docking The Pay of Exempt Employees

Posted in Class Actions

Last week, the Southern District of Texas denied a motion by Power Line Services Inc. (“Power Line”) to dismiss a class action alleging that the company improperly docked employee paychecks.  The claim arises out of a company policy permitting Power Line to make payroll deductions for any charges made on a corporate credit card for which an… Continue Reading

Fifth Circuit Rules Severance Payments Cannot Offset Back Wages Under The FLSA

Posted in Exemptions

In an interesting case, the Fifth Circuit has addressed the issue of whether an employer may take, as an offset, severance payments that were given to an employee under a severance agreement, against an allegation that the employee is due overtime pay.  The Court rejected the employer’s attempt for offset, holding explicitly that such attempts,… Continue Reading

Unlicensed Law Clerks Found to Be Exempt Employees

Posted in Exemptions

Last week, a California appeals court ruled that a former law clerk who had graduated from law school but not yet passed the bar, was exempt from overtime pay as a professional employee.  The former law clerk, Matthew Zalesko-Barrett, sued Brayton Purcell LLP alleging that the law firm denied him overtime, waiting time penalties, and… Continue Reading

A Pleasant Surprise for Loan Companies — Mortgage Loan Officers Found to Be Exempt from Overtime

Posted in Class Actions

On March 17, 2011, a Michigan jury returned a verdict in favor of loan company, Quicken Loans Inc., in a class action lawsuit alleging that Quicken had failed to pay them overtime under the Fair Labor Standards Act (“FLSA”).  The jury found that the loan officers had been properly classified as exempt employees under the… Continue Reading

Further Confusion — The Split in Authority Regarding the Exempt Status of Pharmaceutical Sales Representatives

Posted in Exemptions

In early January, I posted an entry regarding the exempt status of pharmaceutical sales representatives. In the past several months, there have been several significant developments with respect to this issue. On February 14, 2011, the Ninth Circuit affirmed the District of Arizona’s ruling in Christopher, et al. v. SmithKline Beecham Corp., that a proposed… Continue Reading