Category Archives: Exempt

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Federal Court Strikes Down Department of Labor’s Overtime Rule

On August 31, 2017, Judge Amos Mazzant in the United States District Court for the Eastern District of Texas issued an order granting a group of twenty-one states’ and fifty-five business associations’ motion for summary judgment in consolidated cases seeking declaratory and injunctive relief against a May 23, 2016 Department of Labor rule drastically increasing … Continue Reading

Update: New York State Department of Labor Proposes Increases to Overtime Exempt Salary Threshold

[UPDATE] On December 29, 2016, the New York State Department of Labor (“NYSDOL”) adopted its proposed rule increasing overtime exempt salary thresholds for New York employees. The new rule is set to take effect in just two days on December 31, 2016. The NYSDOL made no changes to the version of the proposed rule published … Continue Reading

Texas Federal Court Blocks New Salary Restrictions for Exempt Employees

On November 22, 2016, a federal court in the Eastern District of Texas issued a preliminary injunction blocking the Department of Labor from enforcing new regulations that would have drastically reduced the number of white collar employees who are exempt from overtime.  The disputed regulations were set to take effect on December 1.… Continue Reading

New York State Department of Labor Proposes Increases to Overtime Exempt Salary Threshold

[UPDATE] On December 29, 2016, the New York State Department of Labor (“NYSDOL”) adopted its proposed rule increasing overtime exempt salary thresholds for New York employees. The new rule is set to take effect in just two days on December 31, 2016. The NYSDOL made no changes to the version of the proposed rule published … Continue Reading

Governor Brown Signs Bill Clarifying Wage Statement Requirements for Exempt Employees

On July 22, 2015, Governor Brown signed AB 2535 that clarifies which employees for whom an employer must track hours worked and record those hours on their wage statements.  The bill will become effective January 1, 2017. Prior to this amendment, Labor Code section 226 required that an employee’s paystub include hours worked for all … Continue Reading

DOL Makes Last-Minute Tweaks to New Overtime Exemption Rules

In March 2014, President Obama signed an executive order directing the Department of Labor to revise its aging rules governing overtime pay for white collar employees.  The Department solicited comments from the public on an earlier draft in July 2015.  Yesterday, the Department of Labor released the final version of the new rules.  The new … Continue Reading

60-Day Public Comment Period Commences On Proposed FLSA Overtime Exemption Rule Changes

On Monday, July 6, 2015, in response to a March 2014 executive order signed by President Obama, the Department of Labor (“Department”) published a Notice of Proposed Rulemaking (“NPRM”) that will more than double the minimum salary necessary for a worker to be classified as “exempt” from the Fair Labor Standards Act (“FLSA”) overtime regulations.  … Continue Reading

U.S. Supreme Court Holds Agency Interpretations Are Not Subject To Notice-and-Comment Rulemaking Requirement

In 2004, the DOL revamped its regulations regarding the Fair Labor Standards Act (FLSA) administrative exemption.  In 2006, the Bush DOL issued an opinion letter finding that mortgage loan officers qualified for the administrative exemption.  In 2010, the Obama DOL withdrew the 2006 opinion letter and issued an Administrator’s Interpretation finding that mortgage loan officers … Continue Reading

California Supreme Court Limits Application of Commissioned Employee Exemption

On July 14, 2014, the California Supreme Court held in Peabody v. Time Warner Cable, Inc. that employees qualify for the California “commissioned employee” exemption in a pay period only if they receive “earnings [that] exceed one and one-half (1-1/2) times the minimum wage” in that two-week pay period.  The Court held that an employer … Continue Reading

Plaintiffs Must Offer “Significant Proof” Of A Common Policy Or Practice To Satisfy Commonality Under Rule 23 Post-Dukes

By Thomas Kaufman and Jason Guyser On January 28, 2013, Hon. George King of the United States District Court for the Central District of California issued an order in Pedroza v. PetSmart, Inc. denying class certification of exempt misclassification claims brought by a former PetSmart store manager. The opinion is interesting in that it contains … Continue Reading

U.S. Supreme Court Sides With Employers on the Outside Sales Exemption

By Thomas Kaufman (follow me on Twitter) On June 18, 2012, the U.S. Supreme Court issued a 5-4 decision Christopher v. SmithKline Beecham, holding that pharmaceutical sales representatives ("pharma reps") generally meet the FLSA’s outside sales exemption. While there are differences between California and the FLSA concerning the elements of the outside sales exemption, this case dealt with … Continue Reading

Ninth Circuit Attempts to Clarify Learned Professional Exemption’s Educational Requirement

Last week, the Ninth Circuit issued a decision in Solis v. State of Washington, Department of Social and Health Services, wherein it attempted to clarify the learned professional exemption’s "specialized intellectual instruction" requirement. In Solis, the U.S. Department of Labor filed a complaint against the State of Washington, Department of Social and Health Services ("DSHS") … Continue Reading

Unlicensed Accountants Are Not Categorically Excluded From Potential Exempt Status

On June 15, 2011, the Ninth Circuit issued its long-awaited decision in Campbell v. PricewaterhouseCoopers, LLP, No. 09-16370 (June 15, 2011). In its ruling, the Ninth Circuit reversed the district court’s holding that unlicensed junior accountants could never meet the professional or administrative exemptions under California law, concluding that there is a triable issue of … Continue Reading

Amendment to Computer Software Employee Overtime Exemption Approved by Governor

On September 30, 2008, Governor Schwarzenegger approved AB 10, which amends the computer software employee exemption from California’s overtime pay requirements.  The bill, which is codified in Section 515.5 of the California Labor Code, is urgency legislation that will take effect immediately.  As amended, Section 515.5 will permit California employers to pay certain computer software … Continue Reading

CALIFORNIA’S COMPUTER- RELATED EXEMPTION IS MODIFIED

California Labor Code Section 515.5 provides that employees in the computer software field who perform specific computer-related duties are exempt from the overtime requirements in Labor Code Section 510. In addition to a duties test, computer professionals must earn a statutorily specified minimum pay rate to be considered exempt. When Labor Code Section 515.5 was initially enacted, … Continue Reading

Post- Sav-On Cases Indicate Bar for Class Certification May Remain High

In June 2005, two trial Courts denied class certification on the grounds that common issues did not predominate. In Dunbar v. Albertson’s, plaintiff alleged misclassification of Albertson’s Grocery Managers as exempt employees. While the Court determined that the plaintiff satisfied the acertainability, numerosity, typicality and adequacy requirements of a class action, the Court determined that … Continue Reading
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