News & Analysis as of

Exempt-Employees

Littler

Sixth Circuit Finds Employee’s Guaranteed Weekly Salary Was Based on Daily Rate, Defeating Exempt Classification

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Despite an employee’s being highly compensated, the Sixth Circuit reversed a summary judgment order from the district court, finding that even though the pipe inspector was highly compensated, his pay was calculated on a...more

Vedder Price

Sixth Circuit Clarifies Requirements for a Salaried Employee to Be “Paid on a Weekly Basis” Under the FLSA.

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On April 1, 2025, the U.S. Court of Appeals for the Sixth Circuit issued an important decision in Pickens v. Hamilton-Ryker IT Solutions, LLC regarding what it means to be paid on a “weekly basis” for purposes of the...more

Foley & Lardner LLP

Supreme Court’s E.M.D. Sales v. Carrera Decision: A Victory for Employers Navigating FLSA Exemptions

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A January 15, 2025, U.S. Supreme Court opinion brought welcome news for employers defending claims of worker exempt status misclassification under the Fair Labor Standards Act (FLSA). In the case at issue, E.M.D. Sales, Inc....more

Kaufman & Canoles

[Event] 41st Annual Employment Law Update - May 15th, Hampton, VA

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Managing risk in the employment law circus isn’t always easy when the rules change like they are contortionists. The 41st Annual Employment Law Update will highlight recent changes to the law and how employers can most...more

Ice Miller

The Highly Compensated Employee Exemption Under the FLSA - Misclassification of Highly Compensated Employees Can be Costly

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Classification of employees under the Fair Labor Standards Act (FLSA) remains a high-risk area where employers can easily misstep, potentially incurring thousands of dollars in overtime pay, liquidated damages, attorneys...more

McGuireWoods LLP

Employers Note: Virginia Bans Noncompetes for All Overtime-Eligible Workers

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Beginning July 1, 2025, Virginia will prohibit noncompete agreements for all employees eligible for overtime pay. The new law builds on previous prohibitions for “low-wage employees” in the Commonwealth....more

Saul Ewing LLP

More States Narrow the Use of Restrictive Covenants: Updates from Virginia, Arkansas, and Wyoming

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Continuing a nationwide trend, three states recently enacted new legislation further restricting the enforceability of non-compete provisions in employment agreements. Starting in July, these new regulations are set to take...more

Woods Rogers

Virginia Extends Ban on Non-Competes

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Virginia lawmakers extended the state’s ban on non-compete agreements to cover all non-exempt employees. This new law affects how employers can enter non-compete agreements with even more of their employees and goes into...more

Parker Poe Adams & Bernstein LLP

Can Part-Time Employees Qualify for FLSA Overtime Exemptions?

Sometimes a salaried exempt employee reduces their workload to part-time status. Does this change mean that the employer must reclassify that worker as non-exempt under the Fair Labor Standards Act? ...more

Rumberger | Kirk

No Extra Hurdles for Employers Claiming Overtime Exemptions: High Court Rules FLSA Does Not Require Stricter Evidence Standards

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In a unanimous opinion decided January 15, 2025, E.M.D. Sales, Inc., v. Carrerra et al., the U.S. Supreme Court ruled that the less stringent preponderance of evidence standard, instead of the clear and convincing evidence...more

Fisher Phillips

4 Tips for Employers After Appeals Court Says Highly Compensated Employee is Entitled to OT Pay

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An appeals court just ruled that a pipe inspector who earned more than $270,000 a year was entitled to overtime pay because he was not paid on a “salary basis.” In its April 1 decision, the 6th Circuit joined the 5th Circuit...more

Constangy, Brooks, Smith & Prophete, LLP

Paid $270,400 per year and still owed overtime? Another court says yes.

On April 1, a U.S. appeals court showed that the salary basis requirement is alive and well, regardless of how highly compensated an employee might be. The decision is a reminder to businesses that simply paying a guaranteed...more

Epstein Becker & Green

Virginia Expands Non-Compete Restrictions Beginning July 1, 2025

At the end of March, Governor Glenn Youngkin signed SB 1218, which amends Virginia’s non-compete ban for “low-wage” workers (the “Act”) to include non-exempt employees under the federal Fair Labor Standards Act (the “FLSA”)....more

Offit Kurman

Keeping Up with Exemption Threshold Regulations

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Join attorneys Sarah Sawyer and Russell Berger from Offit Kurman on this week's episode of OK at Work as they delve into the intricacies of the salary basis test for overtime exemptions under the FLSA. They discuss the...more

Parker Poe Adams & Bernstein LLP

Supreme Court Will Not Review Challenge to Overtime Exemption Rules

On Monday, the U.S. Supreme Court declined review of a First Circuit Court of Appeals decision rejecting a facial challenge to the way the Department of Labor and federal courts determine exempt versus non-exempt duties under...more

ArentFox Schiff

Arzate v. ACE American Insurance Company: Employer Not Required to Initiate Arbitration in Defense of Itself

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On June 18, 2021, a group of ACE American Insurance Company employees filed a class action suit alleging that ACE misclassified them as exempt employees....more

Venable LLP

Supreme Court Clarifies Burden of Proof for FLSA Exemptions

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On January 15, 2025, the U.S. Supreme Court clarified the burden of proof employers must satisfy when questions arise concerning employee classification under the Fair Labor Standards Act ("FLSA"). ...more

Butler Snow LLP

SCOTUS Confirms Lower Standard of Proof for Employers Claiming FLSA Exemptions

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Last month the United States Supreme Court (“SCOTUS”) delivered a pro-employer ruling on the standard of proof required under certain provisions of the Fair Labor Standards Act (FLSA). In E.M.D. Sales, Inc. v. Carrera, the...more

Lerch, Early & Brewer

Supreme Court Clarifies Burden for Employers Seeking to Establish That Employees are Exempt From Minimum Wage Requirements

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In a decision which should provide some comfort to employers, the Supreme Court recently held in E.M.D. Sales, Inc., et. al. vs. Carrera, et. al. that employers do not have a higher burden of proof demonstrating that an...more

Seyfarth Shaw LLP

Seyfarth’s SCOTUS Employment Law Roundup: A Win for Employers Defending Exemptions Under the FLSA, and Two Other Cases to Watch

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In an important opinion for employers defending against misclassification claims, the Supreme Court has issued its first major employment law decision of the current term in EMD Sales v. Carrera, with two other marquee...more

Fisher Phillips

The Auto Dealer’s Guide to FLSA Exemptions: An Inventory of Commonly Used Categories + Your Maintenance Plan to Stay Compliant

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Auto dealerships employ a wide range of workers and often maintain a variety of complex pay plans, which can make compliance with federal wage and overtime rules extra challenging. Since violations of the Fair Labor Standards...more

Fisher Phillips

Workplace Law Update: 10 Essential Items on Your February To-Do List

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It’s hard to keep up with all the recent changes to labor and employment law, especially given the rapid pace at which the White House acted in the first days of President Trump’s second term. In order to ensure you stay on...more

Tucker Arensberg, P.C.

U.S. Supreme Court Clarifies Lower Burden for Employer to Prove FLSA Overtime Exemption

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The Supreme Court recently clarified that an employer seeking to prove an exemption from overtime requirements under the Fair Labor Standards Act (“FLSA”) must meet the “preponderance of the evidence” standard, and not the...more

Mintz - Employment Viewpoints

Employer Win on FLSA Exemption Issue – Heightened Pleading Standard Rejected by High Court

The United States Supreme Court recently held in E.M.D. Sales, Inc. v. Carrera that the “preponderance of the evidence” burden of proof applies in determining whether an employee is exempt under the federal Fair Labor...more

Dechert LLP

Supreme Court Unanimously Rejects Stricter Standards for Minimum Wage and Overtime Exemptions

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The United States Supreme Court held that employers seeking to prove an employee is exempt from minimum wage and overtime pay provisions of the Fair Labor Standards Act must only satisfy a preponderance of the evidence...more

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