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Blog About: Overtime Issue for Home Care Workers is Alive as Senators Press to Have US DOL Regulations Altered or Reinterpreted.
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Quick Quiz: FLSA Overtime On Commissions.
The blogosphere is providing mixed signals about how to figure commission overtime under the federal Fair Labor Standards Act. There is particular discussion on this point where Mortgage Loan Officers are concerned, now that the U.S. Labor Department opined in March that the "typical" one is non-exempt. However, the FLSA overtime principles are the same for any commissioned employee who is subject to that law's overtime requirements.
The federal appeals court in New York has held an employer incorrectly classified an employee as a professional exempt from overtime pay under the Fair Labor Standards Act where the employee, though hired into an exempt position, did the work of a non-exempt employee. Young v. Cooper Cameron Corp., No. 08-5847 (2d Cir. Nov. 12, 2009). The Court of Appeals determined the employee was entitled to overtime. According to the Court, for a position to qualify as exempt under the learned professional prong of the professional exemption, the job should ordinarily require at least a four-year college degree, if not something more advanced, in a specific field directly relevant to the performance of the job.
Sales Rep Falls Within FLSA’s “Administrative” Exemption Because of Independent Strategic Planning Responsibilities.
Under the Fair Labor Standards Act (FLSA), employees who work more than 40 hours a week are entitled to overtime pay unless they fall under one of the Act’s enumerated exemptions. The 3d U.S. Circuit Court of Appeal found that a Johnson & Johnson sales representative fell within the “administrative” exemption, based upon that person’s high level of planning and foresight, along with her “exercise of discretion and independent judgment with respect to matters of significance” and, therefore, was not entitled to overtime pay.
Department of Labor Makes U-Turn on Opinion Letters and Mortgage Loan Officers.
On March 24th, the Department of Labor issued an Administrator's Interpretation concluding that mortgage loan officers are not ordinarily covered by the administrative exemption to the minimum wage and overtime pay provisions of the Fair Labor Standards Act (FLSA). The new interpretation reverses a 2006 Department opinion finding mortgage loan officers were generally exempted from the FLSA's pay requirements.
Quick Quiz Answer: FLSA Overtime On Commissions.
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