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.
Add a comment
Subscribe
RSSTopics
- Employment Liability
- Human Resources
- Labor Law
- Equal Employment Opportunity Commission (EEOC)
- Department of Labor (DOL)
- Family Medical Leave Act (FMLA)
- Fair Labor Standards Act (FLSA)
- Employment Agreement
- Wage & Hour
- Employment Discrimination
- At Will Employment
- Minimum Wage
- National Labor Relations Act
- Noncompete Agreements
- Civil Rights
- National Labor Relations Board (NLRB)
- COVID-19
- Contract Employees
- Americans With Disabilities Act (ADA)
- National Labor Relations Board
- Coronavirus
- Tax Law
- Whistleblower Protection Act
- Regulatory Law
- Paid Medical Leave Act (PMLA)
- OSHA Issues
- Title VII
- Federal Trade Commission
- Civil Litigation
- Settlements
- Retaliation
- Sick Leave
- Unemployment Benefits
- Workplace Harassment
- Contracts
- Transgender Issues
- Accommodations
- First Amendment
- Hostile Work Environment
- Business Risk Management
- Public Education
- ERISA
- Workers' Compensation
- Cannabis
- Department of Justice
- Medicare Issues
- LGBTQ
- Class Actions
- Sexual Harassment
- Garnishments
- Social Media
- Retail Liability
- RICO
- Emergency Information
- Uniformed Services Employment and Reemployment Rights Act (USERRA)
- Department of Education (DOE)
- Title IX
- Medical Marijuana
- Right to Work
- Health Insurance Portability and Accountability Act (HIPAA)
- Diversity
- Union Organizing & Relations
Recent Updates
- Implementing the Pregnant Workers Fairness Act: Key Insights for Employers
- Federal Court Throws out DOL’s Attempt to Rewrite White Collar Overtime Rules
- Civil Rights Litigation Filed by Christian Employers Gets New Life Following Federal Appellate Court Ruling
- Michigan Supreme Court Clarifies Minimum Wage Decision
- Judge Strikes Down Federal Ban on Non-compete Agreements
- Michigan Employers Can Legally Resist Union Organizing Efforts
- Michigan Supreme Court Decision Reinstates Previous Versions of Wage Laws
- Union Power in Michigan: Is it Real or Imagined?
- Employers Should act Now to Address Rising DOL Salary Thresholds for Exempt Employees
- Is This the end of the Employee Non-Compete Clause?