Recently the U.S. Department of Labor (DOL) responded to a request for an opinion clarifying how tipped employees can meet the 7(i) exemption. While the Fair Labor Standards Act (FLSA) requires nonexempt employees (including tipped employees) to be paid at least minimum wage for all hours worked and overtime (at
Articles Discussing Overtime Exemptions Under The FLSA.
DOL Opinion Letter Offers Reminders on Exempt Classification Decisions
DOL Opinion Letter Offers Reminders on Exempt Classification Decisions
On January 5, 2026, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2026‑1, addressing whether an employer may classify an employee as non‑exempt even when the employee satisfies the educational and job duties requirements of the Fair Labor Standards Act’s
FLSA Misclassification is Common, Costly, and Completely Avoidable
Correctly classifying employees as exempt or nonexempt under the Fair Labor Standards Act (FLSA) is more than a compliance checkbox, it’s a critical step in managing wage and hour risk.…
Court of Appeals Upholds $9.3 Million Award for Nurses Misclassified as Independent Contractors by Healthcare Staffing Agency
DOL Proposes Rule to Return Home Healthcare Agency Workers to FLSA Exempt Status
On July 2, 2025, the U.S. Department of Labor (DOL)’s Wage and Hour Division (WHD) issued a proposed rule that would allow third-party home healthcare providers to rely on the domestic service exemption that existed under the Fair Labor Standards Act (FLSA) implementing regulations issued before 2013, and expanding the
Fifth Circuit Decision Clarifies Application of Highly Compensated Employee Overtime Exemption
TakeawaysA recent decision by the Fifth Circuit Court of Appeals clarifies how courts should apply the highly compensated employee exemption under the Fair Labor Standards Act.For the exemption to apply, an employee must perform at least one exempt duty set forth in the standard executive, administrative, or professional exemptions — a simpler duties test to meet.The court’s analysis provides practical guidance for employers evaluating overtime exemptions for technical and field-based roles.Related link
Hold that Paycheck! Navigating Unpaid Suspensions for Exempt Employees
On those (hopefully) rare occasions when a supervisor or other exempt employee must be suspended without pay for disciplinary reasons, employers should take special care to ensure that the unpaid suspension does not result in loss of the employee’s exempt status. Loss of exempt status could be costly to an employer, who may then be required to pay overtime to an employee who is typically not entitled to overtime wages.
Trump Administration Halts Appeal Over DOL’s Overtime Exemption Rule for White-Collar Workers
The Trump administration is seeking to pause appeals over two rulings that blocked the U.S. Department of Labor’s (DOL) April 2024 overtime rule, which sought to increase the minimum salary for overtime exemptions for white-collar employees. The move raises doubts that the administration will continue litigation to revive the overtime
Reprieve Extended? DOL to Halt Efforts to Restore 2024 Minimum Salary Rule for Exempt Employees
TakeawaysThe Trump DOL has officially notified the Fifth Circuit that it intends to reconsider the 2024 final rule raising the FLSA salary level for “white collar” exemptions.It has asked for a litigation stay pending the agency’s further reconsideration of the rule. District courts had enjoined the 2024 final rule, but the Biden DOL appealed the case to the Fifth Circuit.Related links
Sixth Circuit Finds Employee’s Guaranteed Weekly Salary Was Based on Daily Rate, Defeating Exempt Classification
Sixth Circuit Finds Employee’s Guaranteed Weekly Salary Was Based on Daily Rate, Defeating Exempt Classification
Despite an employee’s being highly compensated, the Sixth Circuit reversed a summary judgment order from the district court, finding that even though the pipe inspector was highly compensated, his pay was calculated on a daily
The Burden of Proof for Wage-Hour Claims
The U.S. Supreme Court recently issued an interesting employment law decision, E.M.D. Sales, Inc., et al. v. Carrera. As with the California Wage Orders and Labor Code, the FLSA contains several overtime exemptions. It is the
Supreme Court Clarifies Standard of Proof for FLSA Exemptions
The U.S. Supreme Court unanimously ruled last week that employers do not face an unusually high standard to prove exemptions under wage and overtime laws, ending the Fourth Circuit’s stricter approach for employers in five Southeastern and mid-Atlantic states.
High Court Reaffirms Preponderance-of-the-Evidence Standard for FLSA Overtime Exemptions
On January 15, 2025, the U.S. Supreme Court ruled that disputes over the applicability of overtime exemptions under the Fair Labor Standards Act (FLSA) are governed by the preponderance-of-the-evidence standard. In so doing, the Court rejected the heightened “clear and convincing” level of proof that the Fourth Circuit had required
SCOTUS Resolves Circuit Dispute on FLSA Evidence Standards, Clarifying Lower Evidentiary Burden for Employers
In a unanimous decision issued on January 15, 2025, the Supreme Court of the United States ruled that the “preponderance of evidence” standard applies to employers seeking to prove an employee exemption from overtime pay under the Fair Labor Standards Act (FLSA).
Employers Need Only Use ‘Preponderance of Evidence’ Test to Show Workers Are Exempt From FLSA, Supreme Court Rules
On January 15, 2025, the Supreme Court of the United States held that employers need only demonstrate that an employee is exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA) by a preponderance of the evidence, rejecting a higher evidentiary standard used by some