When I saw that the U.S. Supreme Court had ruled that service advisors at automobile dealerships were exempt employees under the Fair Labor Standards Act (FLSA), I have to admit I was not very excited. That would be a narrow ruling, and I don’t represent any car dealerships.
But, there is something important in the decision – the five conservative justices of the court (Justices Thomas, Roberts, Kennedy, Alito and Gorsuch) expressly rejected the idea that the FLSA exemptions are to be narrowly construed. This is a big change from how the FLSA has been applied by the Department of Labor. The other four justices (Justices Ginsberg, Breyer, Sotomayor, and Kagan) sharply dissented.
An exempt employee is not entitled to overtime pay and, in a few limited professions, the employee is also exempt from minimum wage requirements. The case, Encino Motorcars, LLC v Navarro, ___ S. Ct. ___ (2018), will be helpful to employers when they defend the exempt status of an employee. This case may also provide insight into the high court’s rulings in future employment cases.
However, employers located in Michigan, Ohio, Kentucky and Tennessee are also subject to the rulings of the U.S. Court of Appeals for the Sixth Circuit which requires employers to bear a “heightened” burden of proof, more than a preponderance (or a mere tipping of the scales of justice), when proving an employee is an exempt employee. So, while the exemption itself is no longer to be narrowly construed, the burden of proof still remains high for employers in the Sixth Circuit.
Job descriptions should be reviewed every few years because duties change and positions morph. For example, a manager who was previously classified as exempt under the executive exemption may now only manage one full time employee and is no longer eligible for the exemption. Some positions are easily assigned the status of exempt or non-exempt, but some are more difficult. Those positions should always be reviewed with experienced employment counsel.
- Of Counsel
An of counsel attorney in the firm’s Detroit office, Claudia D. Orr exclusively represents and advises employers and management in employment and labor law matters.
Ms. Orr has an ever-growing practice in Alternative Dispute ...
Add a comment
Subscribe
RSSTopics
- Employment Liability
- Labor Law
- Employment Discrimination
- Human Resources
- Fair Labor Standards Act (FLSA)
- Wage & Hour
- National Labor Relations Act
- National Labor Relations Board
- Employment Agreement
- Americans With Disabilities Act (ADA)
- Equal Employment Opportunity Commission (EEOC)
- COVID-19
- Department of Labor (DOL)
- Minimum Wage
- Coronavirus
- Whistleblower Protection Act
- Accommodations
- First Amendment
- Family Medical Leave Act (FMLA)
- Paid Medical Leave Act (PMLA)
- Regulatory Law
- Unemployment Benefits
- OSHA Issues
- Title VII
- Public Education
- Retaliation
- Sick Leave
- At Will Employment
- Workplace Harassment
- Contracts
- Hostile Work Environment
- Business Risk Management
- Noncompete Agreements
- Transgender Issues
- ERISA
- Workers' Compensation
- Department of Justice
- Medicare Issues
- Cannabis
- LGBTQ
- Class Actions
- Sexual Harassment
- Garnishments
- Civil Rights
- Social Media
- Retail Liability
- RICO
- Emergency Information
- Uniformed Services Employment and Reemployment Rights Act (USERRA)
- Department of Education (DOE)
- Title IX
- Tax Law
- Medical Marijuana
- Right to Work
- Health Insurance Portability and Accountability Act (HIPAA)
- Diversity
- Union Organizing & Relations
Recent Updates
- U.S. Supreme Court Bolsters Right of Employees to Request Religious Accommodations
- U.S. Supreme Court Rules Website Designer Free to Refuse Services Under First Amendment
- NLRB Restores FedEx II Standard When Factoring Workers’ Entrepreneurship
- Sixth Circuit Adopts New “Similarly Situated” Employees Evaluation Standard for Issuing Court-Approved Notice of FLSA Suits
- Unanimous Supreme Court Finds Lip Service not Good Enough for Disabled Student
- Michigan Senate Votes to Repeal 2012 Right-to-Work Law
- Michigan Appellate Court Overturns Decision on Minimum Wage, Paid Sick Leave Requirements
- Michigan Supreme Court Ruling Could Result in High Exposure Claims Against Employers
- FTC Proposes Ban on All Employer Noncompete Agreements
- Court Delays Ruling on Fate of Michigan’s Paid Sick Leave, Minimum Wage Laws Until February 2023