Total Articles: 4
New Jersey Appellate Court Defers to State Wage and Hour Division's Longstanding Interpretation of Exemption
On November 16, 2011, the New Jersey Appellate Division affirmed a finding that registered nurses who were paid on an hourly basis were exempt from the overtime requirements of the New Jersey Wage and Hour Law (“NJWHL”), even though the regulation applicable at the time only extended the “professional” exemption to employees compensated on a “salary or fee basis.”
NJ Inadvertently Eliminates Its Exemption for Commissioned Sales Employees
There has been an important change in New Jersey law which may require employers to take immediate action: In recent amendments to its overtime regulations, New Jersey eliminated the exemption for sales employees paid on commission, which closely tracked an exemption in Section 7(i) of the Fair Labor Standards Act (sometimes known as the “inside sales” exemption). Because New Jersey law is now more protective than the FLSA, at present, it appears likely that employers cannot classify commissioned inside sales employees as exempt from overtime pay.
New New Jersey White Collar Overtime Exemptions Regulations Follow Federal Regulations
The New Jersey Department of Labor and Workforce Development (“NJDOL”) has adopted the federal regulations regarding white collar overtime exemptions, repealing existing state regulations and eliminating inconsistencies between the two regulatory schemes. This will provide employers with greater certainty regarding proper worker classifications and puts New Jersey in line with the majority of states that track certain federal overtime exemption requirements. The new regulations are effective immediately.
Spring Forward: New Jersey May Adopt Federal Regulations on Overtime Exemptions
New Jersey has taken the first step towards bringing the State’s regulations on overtime exemptions in line with federal law. The New Jersey Department of Labor and Workforce Development (“NJDOL”) on March 21, 2011, proposed to adopt the federal regulations regarding overtime exemptions and repeal the existing State regulations. The move would eliminate needless inconsistencies between the two regulatory schemes and provide greater certainty to employers and employees regarding appropriate worker classifications. The current proposal comes on the heels of the NJDOL’s adoption of federal regulations regarding practices in rounding employees’ wages.
