The fundamental premise of being an exempt employee is that the worker is paid by a “salary” as that term is defined in the FLSA regulations. Even paying someone an exorbitant amount of money, if it is not (at least in part) a salary, means, by definition, that the person is non-exempt. The Fifth Circuit
Case In Trucking Industry Explores The Murky Parameters Of The FLSA Administrative Exemption And Gives Warnings For All Employers To Take Heed
Another administrative exemption case, this time in the trucking industry, tests the contours of that vague, nuanced exemption and to what occupations it applies. In this case, a group of Logistics Coordinators contend they are not within the exemption because their primary duty was making sales and they were not paid on a salaried basis,
Defendant Cannot Disprove “Willfulness” in FLSA Class Action So Plaintiffs Get a Third Year: Should Never Happen!
When I, as a management-side practitioner, defend a FLSA class action, the contingency I fear is that a court might find that the violation was “willful,” thereby extending the two-year statute of limitations to a third year. A recent case shows just how hard a defendant will fight against that third year. In this case,
Health Care Client Service Managers Win Final Certification In FLSA Overtime Class Action: A Shame!
The issue of misclassification of workers as exempt when they might not be has been around for a very long time. Another class of such workers has been certified in the health care industry. The federal Judge has granted final certification to two classes of workers claiming they are entitled to overtime. The classes will
Warning—Calling Someone A Manager Or Sous Chef Does Not Automatically Make Them Exempt From Overtime Under The FLSA
The New York City restaurant industry has, over the last several years, been hit with a flood of lawsuits. Many of these have focused on illegal tip pools but many have also alleged that employees were misclassified as exempt. These cases often generate large liabilities for employers and must be avoided. A recent example of
FLSA Misclassification Case Highlights The Vagaries Of The Administrative And Professional Exemptions
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 of the elements of the exemption(s). A recent example of this tension is the FLSA collective
Doctrine of Practical Continuity Tested Again In Case Involving FLSA Motor Carrier Exemption
I have always been interested in the Motor Carrier Act (MCA) exemption of the Fair Labor Standards Act, 29 USC 213(b)(1), especially in the doctrine of “practical continuity” which is one of the ways that interstate commerce is determined and have defended a number of cases where we had to rely on practical continuity for
Second Circuit Takes Hard Line On FLSA Willfulness Standard: Defense Practitioners Given A New Weapon!
Every time a plaintiff files a FLSA lawsuit, they seek a third year, one longer than the usual two year statute of limitations, claiming that the violations were “willful.” It has become a matter of course and defendant attorneys must begin any settlement negotiations knowing that the amount claimed has been artificially inflated with a
Health Care Industry FLSA Collective Action Focuses On Exempt Status Of Care Coordinators
Another exemption lawsuit has been filed. What else is new? This time, a group of nurses and care coordinators determine who analyze requests for coverage from health care providers have claimed they are entitled to overtime because they are non-exempt. They have filed a collective action under the Fair Labor Standards Act. The case is
USDOL Opening Door (A Little) On Section 7(i) Commission/Retail Exemption After Rescission Of Outdated Lists
There has been a lot of action lately from the USDOL on the issue of the Section 7(i) exemption from overtime (29 USC 207(i), the so-called commission exemption. One of the basic requirements for an employer trying to claim this exemption is that it must be in a “retail business.” Until May 2020, this was