Renewed Increases to the White Collar Salary Threshold on the Horizon

Gray, Kristin - 300dpi
Kristin Gray

In 2016, as employers scrambled to prepare to comply with the U.S. Department of Labor’s (“DOL”) “final rule,” which more than doubled the minimum salary threshold needed to meet the “white collar” exemptions by, the U.S. Court of Appeals for the Fifth Circuit issued an injunction blocking it.  Now, the DOL is expected to issue a new Notice of Proposed Rulemaking—possibly this month—increasing the salary threshold for these exemptions.  Continue reading

Recent Case Provides Food for Thought on “Primary Duty” of FLSA Overtime-Exempt Managers

Prendergast, Mike - 300dpi
Mike Prendergast

In Clendenen v. Steak N Shake Operations, Inc., Case No. 4:17-cv-01506-JAR, 2018 U.S. Dist. LEXIS 167101 (E.D. Mo. Sept. 28, 2018), the U.S. District Court for the Eastern District of Missouri recently granted conditional class certification under the Fair Labor Standards Act (“FLSA”) to Steak ‘n Shake restaurant managers challenging their classification as overtime-exempt under the FLSA’s executive and administrative exemptions.  Conditional certification is the first step toward maintaining an FLSA collective action.  The Clendenen court found evidence to support conditional certification, including evidence that the managers’ duties were “largely the same as the non-exempt employees they supervised.”  Continue reading

Inching Closer to a New Overtime Rule?

Adams, Julie 300dpi
Julie Adams

In 2016, the U.S. Department of Labor (“DOL”) modified 29 C.F.R. § 541 – which regulates  the Fair Labor Standards Act’s (“FLSA”) white-collar exemptions (administrative, executive, professional, computer, and outside sales) – often referred to as the “Overtime Rule.”  Among other changes, the new Overtime Rule increased the salary threshold for white-collar employees from $23,660 to $47,476.  Before the new Overtime Rule took effect, Judge Amos Mazzant, a federal district judge in Texas, temporarily blocked the rule by entering an injunction in Nevada v. United States Dep’t of Labor, 227 F. Supp. 3d 696 (E.D. Tex. 2017).  Rather than appeal Judge Mazzant’s decision and pursue implementation of the revised 2016 rule, the DOL elected, instead, to proceed with a new rulemaking.  Continue reading