exemption – ManagEase

Fifth Circuit: Clarity on Highly Compensated Employee Exception to FLSA Overtime Requirements

December 4, 2019/0 Comments/in HR Alerts /by ManagEase

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All Employers with LA, MS, and TX Employees

EFFECTIVE

August 21, 2019

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In Faludi v. U.S. Shale Solutions, the Fifth Circuit Court of Appeal confirmed that an employee’s guaranteed day rate satisfied the Fair Labor Standard Act’s (FLSA) highly compensated employee (HCE) exemption, even though the employee was only paid twice monthly. The HCE threshold—which currently requires the employee to be paid more than $100,000 per year and at least $455 a week on a salary or fee basis—only requires that the employee “regularly receive[s]” the predetermined amount on a weekly or less frequent basis. There is no requirement that the cash amount be calculated on weekly or less basis.

In addition, the Fifth Circuit also stated that the amount the HCE is paid is not required to bear a “reasonable relationship” to the amount actually earned. Employers should take care when setting highly compensated exempt employee pay to ensure compliance with FLSA requirements.

Action Items

Have highly compensated exempt employee pay reviewed for consistency with this ruling.
Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

Expanded Moral Exemptions to ACA’s Contraception Mandate Struck Down Again

September 27, 2019/0 Comments/in HR Alerts /by ManagEase

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All Employers Subject to the ACA

EFFECTIVE

July 12, 2019

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(888) 378-2456

In Commonwealth of Pennsylvania v. President of the United States, the Third Circuit Court of Appeal stated that the Trump administration’s rules expanding employer exemptions to the contraceptive mandate for religious or moral objections were not enforceable. Specifically, the final rules failed to follow the proper administrative procedures for enacting rules, because no public comment period was offered. Additionally, the court stated that the rules were not authorized by law, making them arbitrary, capricious, and an abuse of discretion.

Second Circuit Refines the Definition of the Outside Salesperson Exemption

November 7, 2018/0 Comments/in HR Alerts /by ManagEase

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All Employers with CT, NY, and VT Employees

EFFECTIVE

September 19, 2018

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(888) 378-2456

In Flood v. Just Energy Mktg. Corp., the Second Circuit Court of Appeal recently addressed what qualifies an employee for the outside sales exemption under the Fair Labor Standards Act (FLSA). Generally, the outside sales exemption is based on an employee’s primary duties – making sales or obtaining orders for contracts or services, while customarily and regularly engaged away from the employer’s place of business.

Third Circuit: WARN Notice Requirements Apply if Layoff is “Probable,” Not “Possible”

September 10, 2017/0 Comments/in HR Alerts /by ManagEase

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All Employers with DE, NJ, PA, and Virgin Islands Employees

EFFECTIVE

August 4, 2017

QUESTIONS?

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(888) 378-2456

The Third Circuit Court of Appeal recently joined other courts in stating that employers must obey the notice requirements required under the Worker Adjustment and Retraining Notification (“WARN”) Act when a layoff is “probable,” that is, more likely than not to occur. A layoff or business closure being simply “possible” does not necessarily trigger the notice requirements of the WARN Act.

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