New York Federal Court Denies Early Summary Judgment Motion as to Exempt Status of Financial Analyst

One commonly held misconception in wage-and-hour law is that all investment professionals in the financial industry are categorically exempt from overtime pay. In a decision contrary to such assumption, Judge Denise Cote of the Southern District of New York recently denied summary judgment to a boutique investment bank as to the exempt status of a financial … Continue reading New York Federal Court Denies Early Summary Judgment Motion as to Exempt Status of Financial Analyst
July 8, 2010

District Court Finds Commercial Window Washing Company To Be a “Retail or Service Establishment”, But Questions Whether Compensation Received Is a “Commission”

Litigation regarding what constitutes a “retail or service establishment,” under the “7(i)” or “retail sales” exemption continues. We recently reported a district court decision applying the exemption to employees selling precious metals. See La Parne v. Monex Deposit Co., 2010 U.S. Dist. LEXIS 59768 (C.D. Cal. Apr. 29, 2010).  Just a couple of months later, another district … Continue reading District Court Finds Commercial Window Washing Company To Be a “Retail or Service Establishment”, But Questions Whether Compensation Received Is a “Commission”
July 6, 2010

Store Managers Are Always Exempt – Aren’t They?

In a case involving retailer Dollar General, another federal judge has refused to hold as a matter of law that a retail store manager is an overtime-exempt “executive” for purposes of the FLSA.  Judge James Jones denied summary judgment to Dollar General in Hale v. Dolgencorp, Inc., 2010 U.S. Dist. LEXIS 62584 (W.D. Va. June 23, … Continue reading Store Managers Are Always Exempt – Aren’t They?
July 1, 2010

NYSDOL Update: New Hire Notification and Permissible Wage Deductions

Employers with New York State operations must ensure they understand the New York State Department of Labor’s current position as to new hire notices and wage deductions. New Hire Notices As previously reported here, since October 26, 2009, New York state employers have been obligated to notify all new hires in writing of their hourly … Continue reading NYSDOL Update: New Hire Notification and Permissible Wage Deductions
June 29, 2010

Account Executives Responsible For Selling Precious Metals Exempt Under 7(i)

The Fair Labor Standards Act contains an exemption from overtime for employees of a “retail or service establishment” who earn at least 1.5 the minimum wage for all hours worked and more than 50% of their compensation from commissions. This exemption is often referred to as the “retail sales exemption” or “7(i) exemption,” referencing the section … Continue reading Account Executives Responsible For Selling Precious Metals Exempt Under 7(i)
June 25, 2010

Connecticut Supreme Court Rules Discretionary Bonus Not Subject to Wage Statute

As discussed here, Connecticut’s highest court has clarified that discretionary bonuses are not subject to that state’s wage claim statute, Conn. Gen. Stat. 31-72, et seq.  See Ziotas v. The Reardon Law Firm, P.C., SC 18292 (Conn., June 8, 2010). Ziotas concerned a law firm associate employed pursuant to an at-will employment agreement which included a … Continue reading Connecticut Supreme Court Rules Discretionary Bonus Not Subject to Wage Statute
June 21, 2010

NY Appellate Court Holds That World Yacht Applies Retroactively

In Samiento v World Yacht, 10 NY3d 70 (2008), the New York Court of Appeals held that whether a labeled service charge is a “gratuity” for purposes of N.Y. Labor Law § 196-d that must be distributed to service staff depends on the “reasonable customer’s” understanding. One of the many questions unanswered by the decision is … Continue reading NY Appellate Court Holds That World Yacht Applies Retroactively
June 21, 2010

Federal Court Reiterates That Banquet Servers Can Satisfy Section 7(i) Exemption

Among the many ambiguities in the FLSA’s often-confusing overtime exemption for commissioned employees of retail or service establishments (known as the “7(i)” exemption), is courts’ varying interpretations of what constitutes a “commission.” This has long been particularly vexing for the banquet industry, where it is customary to charge a mandatory service charge, then distribute that service … Continue reading Federal Court Reiterates That Banquet Servers Can Satisfy Section 7(i) Exemption
June 18, 2010

USDOL Issues Second Pro-Employee “Administrator’s Interpretation”

As discussed previously, the USDOL Wage and Hour Division has ceased issuing Opinion Letters in response to specific requests for guidance from the public, but rather has decided to issue more general “Administrator’s Interpretations” of its own volition on topics of the DOL’s choosing. As with the first such Interpretation, which set forth the Division’s current … Continue reading USDOL Issues Second Pro-Employee “Administrator’s Interpretation”
June 17, 2010

Court Denies Claim For Alleged Unpaid Overtime Despite Employer’s Failure To Maintain Required Records

As discussed here, an employer’s maintenance of accurate records of hours worked by employees is not only a substantive requirement of the FLSA, but an essential component to defending against “off the clock” claims. But what happens if an employee brings such a claim and the employer has not maintained records? Is the employer defenseless? The … Continue reading Court Denies Claim For Alleged Unpaid Overtime Despite Employer’s Failure To Maintain Required Records
June 16, 2010

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