District Court Holds 7(i) Exemption Applies to Cellular Phone Retailer

A Pennsylvania company that sells Sprint cellular phones, service plans, and cell-phone accessories is a “retail or service establishment” under the 7(i) exemption, a Pennsylvania district court holds, granting partial summary judgment to the employer.  Haskins v. VIP Wireless LLC 300, 2010 U.S. Dist. LEXIS 106205 (W.D. Pa. Oct. 5, 2010).  A sales representative employed by … Continue reading District Court Holds 7(i) Exemption Applies to Cellular Phone Retailer
October 11, 2010

Lacking Circuit Court Guidance, District Court Adheres To Earlier Ruling That Pharmaceutical Sales Representatives Are Exempt Outside Salespersons

In the latest installment of the ongoing litigation over whether pharmaceutical sales representatives are exempt from overtime under the FLSA (see earlier post here), a district court in Indiana declined to reconsider its decision holding that PSRs do qualify for the outside sales exemption. See Schaefer-Larose v. Eli Lilly & Co., S..D. Ind. Docket No. 07-CV-1133, … Continue reading Lacking Circuit Court Guidance, District Court Adheres To Earlier Ruling That Pharmaceutical Sales Representatives Are Exempt Outside Salespersons
October 5, 2010

Ninth Circuit: Newspaper’s Reporters Are Not “Creative Professionals”

The FLSA’s professional exemption has two subcategories: the “learned professional” (those who perform work requiring the use of advanced knowledge customarily acquired through prolonged academic instruction), and its sibling, the “creative professional” (those engaged in the “performance of work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor"). See 29 … Continue reading Ninth Circuit: Newspaper’s Reporters Are Not “Creative Professionals”
September 30, 2010

Eleventh Circuit Clarifies Scope of FLSA Enterprise Coverage

As FLSA and other wage lawsuits continue to be prevalent, one threshold issue that often arises with small and/or local businesses, as well as non-profit entities, is whether the employer is an enterprise covered by the FLSA. This issue is relevant because in order for the FLSA to be applicable, either the individual employee must be … Continue reading Eleventh Circuit Clarifies Scope of FLSA Enterprise Coverage
September 10, 2010

Third Circuit Affirms Application of 7(i) Overtime Exemption To Sales Associates

As discussed here and here, the FLSA provides an exemption for employees who 1) are employed by a “retail or service establishment”; 2) earn at least 1.5 the minimum wage for all hours worked; and, 3) earn more than 50% of their compensation in a representative period from commissions. In July 2009, a federal district court … Continue reading Third Circuit Affirms Application of 7(i) Overtime Exemption To Sales Associates
September 9, 2010

Close, But No Discretion: District Court Holds Insurance Investigators Ineligible for Administrative Exemption

Recently, a federal judge in Minnesota analyzed whether the confounding administrative exemption applies to investigators employed by a “full-service investigative firm specializing in insurance defense investigations.” Ahle v. Veracity Research Co., 2010 U.S. Dist. LEXIS 88250 (D. Minn. Aug. 25, 2010). In an opinion which addressed numerous other issues in the litigation, including rejecting the applicability of … Continue reading Close, But No Discretion: District Court Holds Insurance Investigators Ineligible for Administrative Exemption
September 7, 2010

Circuit Court Confirms That Bonus Structure Based On Hours Worked Did Not Negate Employer’s Compliance With Salary Basis Test

The “salary basis” test is by far the most straightforward component of the white collar overtime exemptions, requiring only a fixed salary of $455/week (subject to state law) paid in compliance with the requirements of 29 CFR § 541.602. However, an employer’s use of an unusual compensation or bonus structure can still result in allegations that … Continue reading Circuit Court Confirms That Bonus Structure Based On Hours Worked Did Not Negate Employer’s Compliance With Salary Basis Test
August 30, 2010

New York Federal Court Finds Gas Station and Convenience Store Manager To Be An Exempt Executive

The subject of many FLSA actions is store managers and whether they are properly classified as exempt employees. In a recent victory for the employer community, Judge Glenn Suddaby of the Northern District of New York held as a matter of law that Express Mart properly classified its store manager in Cato, New York as exempt. Guinup … Continue reading New York Federal Court Finds Gas Station and Convenience Store Manager To Be An Exempt Executive
August 27, 2010

California’s Highest Court Rules That Employees Do Not Have A Private Right of Action Under Tip Misappropriation Statute

As analyzed in more detail  here, the California Supreme Court recently ruled that the California labor code provision prohibiting employers from taking or sharing in tips left for employees by customers – Cal. Lab. Code § 351 (“Section 351”) – does not provide  private litigants with a right to sue their employers directly for alleged … Continue reading California’s Highest Court Rules That Employees Do Not Have A Private Right of Action Under Tip Misappropriation Statute
August 17, 2010

Federal Court Finds Time Spent On-Premises On-Call During Lunch Breaks Non-Compensable

The FLSA requires that employers pay employees for all work time, as well as for any time that the employee is “engaged to wait.”  An employee is “engaged to wait” when the employee is idle, but is constrained with respect to engaging in personal activities. Thus, the employee’s time is deemed to be “for the benefit” … Continue reading Federal Court Finds Time Spent On-Premises On-Call During Lunch Breaks Non-Compensable
August 16, 2010

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