News & Analysis as of

Exempt-Employees Over-Time Sales Commissions

Constangy, Brooks, Smith & Prophete, LLP

“Workin’ 9 to 5.” Is that still a thing?

If you answered no, then you’d better have the records needed to prove the number of overtime hours worked by your employees and the rates paid for them. If you don’t have the records, then borrowing a rhyme from the legal...more

Jackson Lewis P.C.

Cable Technicians Were Exempt Commissioned Employees, Fifth Circuit Concludes

Jackson Lewis P.C. on

Although the plaintiff cable technicians, who were paid by the completed job and not by the hour, were covered employees under the Fair Labor Standards Act (FLSA), they nonetheless were bona fide commissioned employees and...more

Constangy, Brooks, Smith & Prophete, LLP

Think Your Commission-Only Plan Is Good?

Two of the more complicated areas of California wage-and-hour law involve commission plans and overtime exemptions. Commission plans are complex animals – long gone are the days where Joey gets 5 cents for each widget he...more

Littler

New DOL Guidance Expands Eligibility for the Commissioned Employee Overtime Exemption

Littler on

Under the Fair Labor Standards Act, retail or service establishment employees can be exempt from overtime pay requirements if they are paid more than one and a half times the minimum wage and more than half of their...more

Bradley Arant Boult Cummings LLP

Window Washers and Telegraph Operators Beware: DOL Eliminates Specific Retail and Non-Retail Examples Under Overtime Exemption...

For those of you craving a non-COVID-19 issue to chew upon, the Department of Labor opened the floodgates of debate by withdrawing the partial lists of establishments that could either be “recognized as retail” or “having no...more

Kilpatrick

DOL Issues Important Overtime Update for Commission-Based Retail and Service Industry Employees

Kilpatrick on

On Monday, May 19, the Department of Labor (“DOL”) withdrew the non-exhaustive lists of establishments that were potentially eligible for or excluded from the retail or service establishment exemption to overtime under...more

Foley Hoag LLP

U.S. Department of Labor Expands Commission Sales Exemption to Federal Overtime Requirements

Foley Hoag LLP on

On May 18, 2020, the Wage and Hour Division of the U.S. Department of Labor (DOL) issued a final rule eliminating a list of businesses prohibited from taking advantage of the commission sales exemption to the overtime...more

Proskauer - Law and the Workplace

Wage and Hour Division Modifies Rules For FLSA’s Retail Sales Exemption

On May 19, 2020, the United States Department of Labor’s Wage and Hour Division (WHD) implemented a final rule withdrawing partial lists of establishments that it previously interpreted as either having “no retail concept” or...more

Spilman Thomas & Battle, PLLC

DOL Adopts New Salary Threshold for White Collar Overtime Exemption

The Department of Labor (“DOL”) has revised its Overtime Rule that updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (“FLSA”) minimum...more

Hutchison PLLC

Changes to Overtime Exemptions under the Fair Labor Standards Act

Hutchison PLLC on

In 2015, the U.S. Department of Labor introduced a proposed rule which would, in part, double the salary threshold required under the Fair Labor Standards Act (“FLSA”) to maintain exempt status under the “white-collar”...more

Bricker Graydon LLP

DOL Finalizes New Overtime Rule For White-Collar Exemptions: 1.3 Million Additional Workers Will Be Eligible For Overtime Pay...

Bricker Graydon LLP on

On September 24, 2019, the United States Department of Labor (DOL) issued its final rule revising the overtime exemptions that cover employees designated as executive, administrative and professional – the so-called...more

Hogan Lovells

DOL Finalizes New Rule That Will Potentially Make Millions of Employees Eligible For Overtime Pay In January 2020

Hogan Lovells on

On September 24, 2019, the U.S. Department of Labor (DOL) announced a final rule that, effective January 1, 2020, will increase the salary threshold, by approximately 50%, that so-called “white collar” employees must be paid...more

Sheppard Mullin Richter & Hampton LLP

It’s Here: The DOL’s Final Overtime Rule has Been Released

After years of uncertainty, on September 24, 2019, the Department of Labor released a Final Rule making changes to the Fair Labor Standards Act (“FLSA”) overtime regulations. BACKGROUND - Since 2004, there had been no...more

Proskauer - Law and the Workplace

The New Federal Overtime Rule: What You Need to Know

The U.S. Department of Labor issued its final rule amending the overtime regulations today, without any significant changes from the proposed rule the agency issued in March 2019.  Here’s the bottom line....more

Proskauer - Law and the Workplace

Retail Salespeople Paid on Commission Are Entitled to Overtime and Sunday Pay, Massachusetts SJC Says

On May 8, 2019, Massachusetts’ highest court held that retail salespersons who are paid entirely on a commission or draw basis, may nevertheless be entitled to additional overtime or pay for work on Sundays. The Supreme...more

Proskauer - Law and the Workplace

Proposed Overtime Rule Published; Public Comment Period Open Until May 21

The U.S. Department of Labor’s proposed new overtime rule was published in the Federal Register on March 22nd. As described in our earlier post, the proposed new rule would...more

Orrick - Employment Law and Litigation

Auto Dealership Sells Supreme Court on Service Advisor OT Exemption

On Monday, the U.S. Supreme Court ruled that service advisers at car dealerships are exempt from the Fair Labor Standards Act (FLSA). In Encino Motorcars v. Navarro, the majority, Chief Justice John Roberts and Justices...more

Constangy, Brooks, Smith & Prophete, LLP

FLSA Overtime Exemptions: SCOTUS Takes Its Thumb Off The Scales Of Justice

When it comes to exemptions from overtime under the Fair Labor Standards Act, courts have traditionally plopped a big thumb on the scale against employers: the exemptions have been construed “narrowly” in favor of a right to...more

Tonkon Torp LLP

U.S. Supreme Court Restores Status Quo For Automobile Service Advisors

Tonkon Torp LLP on

On April 2, 2018, the United States Supreme Court, in a 5-4 decision, resolved a circuit split by concluding that auto dealership service advisors are exempt from the overtime requirements under the federal Fair Labor...more

Akerman LLP

Vehicle Dealers Service Advisors Are Exempt From Overtime

Akerman LLP on

Vehicle dealerships may have a bit more flexibility in determining which employees are exempt from overtime following a U.S. Supreme Court ruling issued this week that specifically rejected the decades-old principle that...more

Holland & Knight LLP

Supreme Court Rejects Narrow Interpretation of FLSA Statutory Exemptions

Holland & Knight LLP on

• In Encino Motorcars, LLC v. Hector Navarro, et al., the U.S. Supreme Court decided 5-4 that service advisors at car dealerships are exempt from overtime pay under the Fair Labor Standards Act (FLSA). • The Court held...more

Faegre Drinker Biddle & Reath LLP

Supreme Court Decides Encino Motorcars, LLC v. Navarro

On April 2, 2018, the Supreme Court decided Encino Motorcars, LLC v. Navarro, No. 16-1362, holding in a 5-4 decision that the Fair Labor Standards Act (FLSA) exempts service advisors at car dealerships from the Act’s...more

Faegre Drinker Biddle & Reath LLP

Supreme Court Rejects "Narrow Construction Principle" in Cases Interpreting Fair Labor Standards Act Exemptions

In a case analyzing a limited-use exemption to the overtime requirements of the Fair Labor Standards Act (the exemption at issue applies to salesmen and mechanics primarily engaged in selling or servicing automobiles), the...more

BakerHostetler

Supreme Court Exemption Decision Could Have Broader Repercussions

BakerHostetler on

Need FLSA exemptions be narrowly construed? On April 2, the United States Supreme Court issued its decision on the issue of whether the Fair Labor Standards Act’s (FLSA) exemption for those selling or servicing automobiles...more

Seyfarth Shaw LLP

Big Commissions & FLSA Omissions: How Employers Could Be Required to Pay Six-Figure Earners Overtime Wages

Seyfarth Shaw LLP on

Seyfarth Synopsis: A recent decision highlights why the FLSA is not always the remedial statute created to protect low-income workers by holding that four commission-based sales representatives, each earning six figures, were...more

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