Its ruling turns less on the amount of time such assistants spend on certain tasks than on what the primary purpose of their jobs is. Sections 3 through 12 of the orders 3 through 11 for order 162001 do not apply. In a move that could substantially impact businesses employing drivers and treating them as exempt from federal overtime requirements, the u. Recently, a california appeals court sent shockwaves through the staffing industry when it ruled in pellegrino v. Drivers of these vehicles were generally exempt from the federal law prior to august 2005 if they carried goods across state lines, or if the goods originated out of state. The fair labor standards act flsa establishes, among other things, overtime pay for fulltime and parttime workers in the private sector and in federal, state, and local governments. Learn who is exempt under the fair labor standards act flsa.
As expected, the compensation adjustments mandated by the new rules require substantial effort to balance. An exempt administrator is primarily engaged 51%plus in high level deskbound planning. Learn about special issues in applying the flsa to police and fire employees such as the option to define an extended workweek, flsa application to small departments, different ceilings on accrual of compensatory time, and rules for volunteer versus paid oncall fighters. Motor carrier exemption overtime law blog flsa decisions. New york limo driver exempt from overtime under motor carrier. Apr 07, 2015 one potential caveat to this rule is an flsa exception for ministers and clergy, the socalled ministerial exception. The new flsa exemption rules and higher education wage. Before we delve into state overtime exemption, lets explore the new overtime requirements under the fair labor standards act flsa. When an employee performs a combination of exempt duties that fall under the executive, administrative, professional, outside sales and. But that does not mean fire marshals are automatically exempt from overtime either. Many executive and administrative assistants are entitled to overtime. However, section a1 of the flsa provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. The administrative exemption under the fair labor standards act flsa is one of the classifications of jobs that are excluded from minimum wage, overtime regulations and other rights and protections given to nonexempt employees.
When an exemption applies, the position is said to be exempt and the employee is not entitled to overtime pay even at. The motor carrier overtime exemption does not apply to employees who work as drivers, driver s helpers, loaders, or mechanics on certain small vehicles. Applying the threepart test for the administrative exemption set forth in regulations adopted by the department of labor dol, 3 the court noted that the exemption only applies when. A shipping clerk is normally permitted to decide the method of packing and the mode of shipment of small orders, and a bookkeeper may decide whether he will post first to one ledger rather than another. On march 11, 2015, the third circuit court of appeals affirmed that the motor carrier exemption to the overtime requirements of the fair labor standards act flsa did not apply to a truck driver who operated vehicles lighter than 10,000 pounds, even though she spent more than half her time operating vehicles weighing 10,000 pounds or more. The exemptions provided by flsa section a1 apply only to whitecollar employees who meet the salary and duties tests set forth in the part 541 regulations. Did meeting the flsa administrative exemption get easier.
Section b1 of the flsa provides an overtime exemption for employees who are within the authority of the secretary of transportation to establish qualifications and maximum hours of service pursuant to section 204 of the motor carrier act of 1935, except those employees covered by the small vehicle exception described below. Department of labor the dol has narrowed its view of the motor carrier exemption the mce to the fair labor standards act the flsa, as set forth under 29 u. In addition, the dol published more detailed guidance for higher education institutions. The flsas overtime provisions do not apply to employees subject to the motor carrier exemption found in section b1 of the act. We now turn to the fair labor standards act flsa administrative exemption, the second of the whitecollar overtime exemptions explained in this blog series. Flsa exemption determination checklist administrative exemption. The flsa requires employers to pay an employee overtime 1 and 12 times his or her regular rate of pay if that employee works more than 40 hours per week. Many employers and employees struggle to analyze its various requirements and make a classification decision as to whether an employee is exempt. Exemption for outside sales employees under the fair labor standards act flsa this fact sheet provides information on the exemption from minimum wage and overtime pay provided by section a1 of the f lsa as defined by regulations, 29 c. It applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the. Exemption for administrative employees under the fair labor standards act flsa this fact sheet provides information on the exemption from minimum wage and overtime pay provided by section a1 of the f lsa as defined by regulations, 29 c. The next blue collar exemption to the flsa is the taxicab exemption. Exemption for outside sales employees under the fair. The flsa exempts workers from the minimum wage and overtime rules under section a1, regulations 29 cfr, part 541.
Administrative assistants only rarely are exempt from overtime pay. The california administrative exemption bowles law. Department of labors flsa regulations define this element of the administrative exemption as meaning to perform work directly related to assisting with the running or servicing of the business, as distinguished, for example, from working on a manufacturing production line or selling a product in a retail or service establishment. Administrative exemption laws, regulations, analysis hr. Dol drives down the flsas motor carrier exemption wage. Many truck drivers are exempt from the overtime law which means they are not entitled to overtime pay. For the professional exemption, there is no minimum salary requirement under state law, but the federal fair labor standards act flsa has a minimum. Drivers, drivers helpers, loaders or mechanics whose duties affect the. The federal fair labor standards act flsa and state law require that employees who work more than 40 hours in a workweek be paid 1.
Motor carrier overtime exemption flsa employment law. Nov 15, 2017 a more in depth look at the administrative exemption from overtime will be posted in a follow up article. Aug 03, 2012 to qualify for the administrative exemption, dol regulations require that an executive assistant or administrative assistant to a business owner or senior executive of a large business perform his or her duties without specific instructions or prescribed procedures and that he or she be delegated authority regarding matters of. Section a1 and section a17 also exempt certain computer employees. Drivers, drivers helpers, loaders, and mechanics are exempt from overtime payments. The flsa overtime pay requirements do not apply to any employee of an air carrier that is subject to the provisions of the federal railway labor act.
Must meet salary basis, salary level, and duties tests for exemption. Third circuit finds motor carrier exemption to overtime. Some employees are exempt from the overtime pay provisions, some from both the minimum wage and overtime pay provisions and some from the child labor provisions of the fair labor standards act flsa. Mar 11, 2015 the motor carrier exemption is found at 29 u.
Executive, administrative and professional employees. Under the motor carrier act, drivers, driver s helpers, loaders, or mechanics whose duties affect the safety of operation of motor vehicles in interstate commerce are not required to be paid overtime wages this exemption applies to overtheroad drivers since they transport goods across. Comparing administrative exemption ca law and flsa. Flsa motor carrier exemption horton law pllc management law.
Before sharing sensitive information, make sure youre on a federal government site. This exemption is set forth in section b17 of the flsa, and covers any driver employed by an employer engaged in the business of operating taxicabs. Section b1 of the flsa provides an overtime exemption for employees. The flsa has always included exemptions for certain executive, administrative, professional and outside sales workers. However, overtime protection does not extend to an administrative employee who is. Place an x in each box that applies to this position. Since many staffing firms classify their recruiters as exempt administrative employees, there was concern that this decision could.
Third circuit rules bus driver exempt from fair labor standards act. Which employees are exempt from overtime payments under the flsa. The motor carrier exemption under the fair labor standards act. Mar 14, 2017 we now turn to the fair labor standards act flsa administrative exemption, the second of the whitecollar overtime exemptions explained in this blog series. The administrative exemption is one of several exemption categories in the flsa that are commonly referred to as the white collar exemptions. The flsa section a1 exemptions are often referred to as the whitecollar. However, flsa regulations exempt certain kinds of jobs from the overtime pay laws if the employees are paid on a salary basis and receive at least a. Learn about special issues in applying the flsa to police and fire employees such as the option to define an extended workweek, flsa application to small departments, different ceilings on accrual of compensatory. The 4th circuit appeals court recently tackled the question of whether assistants to highlevel executives qualify for the administrative exemption from the fair labor standards act flsa. The motor carrier exemption under the fair labor standards act flsa section b1 of the flsa provides an overtime exemption for employees who are within the authority of the secretary of transportation to establish qualifications and maximum hours of service pursuant to section 204 of the motor carrier.
Colorado minimum wage and overtime exemptions employment. This is particularly true with respect to the topic of this articlethe flsas administrative exemption. In this case, most new york employers would be required to meet the flsas minimum salary requirement for the professional exemption in addition to meeting the federal and state duties tests. However, there are exemptions to this general rule. This is particularly true with respect to the topic of this articlethe flsa s administrative exemption. The exemptions do not apply to manual laborers or other bluecollar workers who perform work involving repetitive operations with their hands, physical skill and energy. To qualify as an administrative employee, an individual must. Motor carrier overtime exemption flsa employment law handbook.
Jan 15, 20 the federal fair labor standards act flsa and state law require that employees who work more than 40 hours in a workweek be paid 1. Outside sales employees exemption from overtime pay werman. The flsa requires certain employees be paid overtime pay at a rate of one and onehalf times the employees regular rate of pay for all hours. Exemption for administrative employees under the fair labor standards act flsa this fact sheet provides general information on the exemption from. One of the most commonly applied, and also most frequently misapplied, is the exemption for administrative employees. Other, less commonly used flsa exemptions, are listed after this section.
The others are the executive exemption, the professional exemption, the computer employee exemption, the highly compensated employee exemption, and the outside. The employees primary duty must be making sales as defined in the flsa, or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer. Flsa overtime exemptions the administrative exemption. Rhode island exempts bona fide administrative employees from its overtime requirements. The california administrative exemption under california labor laws, certain provisions of the industrial welfare commission iwc wage orders including california overtime law and meal and rest period premiums do not apply to persons employed in an exempt administrative capacity. Among the various exemptions from the overtime compensation requirements of the fair labor standards act flsa are administrative employees. Give specific and detailed answers to the questions asked. Under the fair labor standards act flsa and many state wage and hour laws, most employees must be paid overtime when they work more than 40 hours in a workweek. Shuttle bus drivers who drove tourists between their hotels and the miami airport and transported them to other locations within florida were exempt from the overtime requirements of the fair. This means that an employer must pay employees who work on small vehicle overtime for all hours worked over 40 in a workweek, as required by the flsa.
Under both the federal flsa and other federal laws applicable to public works projects, employers must pay overtime to employees who work in excess of 40 hours per week. Jul 10, 2017 the next blue collar exemption to the flsa is the taxicab exemption. In many ways, this is the most complicated of the whitecollar exemptions, and the line between an administrative employee and a non administrative employee is not always clear. Want to know whether it specialists are exempt from overtime. To qualify for the outside sales employee exemption, all of the following tests must be met. It also prohibits employment of minors in oppressive child labor. Many employers are faced with the question of whether their managers or assistant managers meet the requirements for one of the exemption classifications as promulgated by the fair labor standards act flsa. Appendix 1 exemption of executive, administrative, professional, and computer employees under flsa statewide overtime policy example 2. Chamberlain, kaufman and jones is a law firm with a nationwide reputation in helping employees receive the wages they are due for all hours worked, specializing in overtime law specifically collection of unpaid overtime pay due under the federal fair labor standards act flsa.
Colorado exempts administrative employees from its minimum wage and overtime requirements. What is an exempt employee overtime and the flsa tsheets. The taxicab exemption is one of the more straightforward exemptions to overtime pay under federal law. By clicking on the underlined text below, you will be linked to information on the exemption. G039985,1 that staffing firm recruiters are not overtime exempt administrative employees under california law. Under the flsa itself as well as other employment statutes, like title vii, the only thing you need to know is that there is no ministerial exception in the statute. Does the flsa allow denying overtime to fire marshals based on the administrative exemption. Pennsylvania exempts bona fide executive employees from its minimum wage and overtime requirements. In previous blog posts, i discussed the executive and administrative exemptions to the fair labor standards act rule that an employee is entitled to overtime pay after working 40 hours in a week. Following is a list of some of the more commonly used exemptions. The motor carrier overtime exemptions heyl royster. Apr 10, 2012 home wage and hour exemptions new york limo driver exempt from overtime under motor carrier exemption. Read the criteria for each exemption category executive, administrative, computer, learned professional, or creative professional. You may check boxes in more than one exemption category.
In many ways, this is the most complicated of the whitecollar exemptions, and the line between an administrative employee and a nonadministrative employee is not always clear. Administrative assistants only rarely are exempt from. An administrative exemption is a reference to an employee who is not subject to the overtime and minimum wage requirements of the fair labor standards act flsa. Congress did not define these terms but instead granted authority to the secretary of labor to do so. The administrative exemption is one of the most nuanced exemptions from overtime. Unfortunately, the flsa does not contain a bright line rule that requires fire marshals receive overtime. Below, we provide some basic information about these common exemptions for transportation employees. The third circuit agreed finding that professional bus drivers cannot collect overtime wages from their employer under the fair labor standards act because they. Dec 07, 2014 the administrative exemption is one of the most nuanced exemptions from overtime. The motor carrier overtime exemption does not apply to employees who work as drivers, drivers helpers, loaders, or mechanics on certain small vehicles. The fair labor standards act flsa, which was first enacted in 1938, includes minimum wage, overtime pay and child labor protections for workers in the united states.
Misclassifying employees as exempt is a common flsa violation. However, section a1 of the flsa provides an exemption from both minimum. The fair labor standards act is designed to insure that wage earners are compensated for overtime hours and provides. Are you in compliance with the flsa administrative exemption regulations. Truck drivers overtime lawyer truck drivers overtime. The question presented in a recent decision by the 9th circuitwhich covers alaska, arizona, california, hawaii, idaho, montana, nevada, oregon, and washingtonwas whether mortgage loan underwriters who work for lending banks fit the. Some exemptions, such as the administrative exemption, involve. Jan 10, 2019 click here for more on the industryneutral administrative, executive, outside sales, and professional exemptions. Mar 09, 2016 the flsas administrative exemption under section 207a1 of the flsa, employers are required to pay overtime to employees who work more than 40 hours in a week. In sum, to be overtime exempt as an administrative employee your work must be a highranking position, involving discretion i.
In making the determination as to which employees are exempt from the flsa, one should always keep in mind that flsa exemptions are subject to the rule of strict construction and are narrowly construed against an employer, which has the burden of proving an exemption. Drivers, drivers helpers, loaders, or mechanics whose duties affect the safety of. Understanding overtime exemptions under the flsa shrm. The taxicab exemption to the flsa exempts cab drivers from mandatory. When congress enacted the flsa, it created an exemption from the minimum wage and overtime pay requirements for any employee employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesman. To qualify as a bona fide executive employee, an employee must. The requirements of the flsas motor carrier exemption have been historically difficult to apply. New york limo driver exempt from overtime under motor carrier exemption by noel p. As we previously reported, the department of labor has now issued its longanticipated final overtime exemption rules for white collar workers. Congress changed the laws of overtime for drivers of vehicles with a vehicle gross weight rating of 10,001 lbs. As noted in the first edition of this series, which focused on the executive exemption see the executive exemption. In this case, most new york employers would be required to meet the flsa s minimum salary requirement for the professional exemption in addition to meeting the federal and state duties tests.
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