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Minimum Wage and Overtime Exceptions: Understanding the Outside Sales Exemption

Employers in Texas and throughout the U.S. are required to pay employees a minimum wage unless they are exempt. Under the Fair Labor Standards Act (FLSA), there are a wide variety of workers who may be exempt, which means the employer is not required to pay the minimum wage and/or overtime compensation. However, it is important for employers to understand, as the U.S. Department of Labor (DOL) explains, that “exemptions are narrowly construed against the employer asserting them,” and the “ultimate burden of supporting the actual application of an exemption rests on the employer.” Common exemptions include commission sales employees, Read more
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Texas Court Halts Implementation of New Overtime Rule

Today, November 22, 2016, U.S. District Judge Amos L. Mazzant of the United States District Court for the Eastern District of Texas (Sherman Division) issued a preliminary injunction halting implementation of the new overtime rules that were set to go into effect on December 1, 2016. As you aware, following a notice and comment period, the U.S. Department of Labor issued a Final Rule regarding the so-called “white collar” overtime exemptions. The rule, set to go into effect on December 1, 2016, increased the required salary level for the executive, administrative and professional exemptions to the Fair Labor Standard Act’s Read more
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DOL Overtime Regulations Fight Continues

As you are aware and as we have discussed in this blog before, the revisions to the Department of Labor’s overtime regulations are set to go into effect on December 1, 2016.  In light of this impending change, the United States Congress and various states have taken action to delay the change.  On September 20th, 22 states (including Texas) filed a declaratory judgment lawsuit in the United States District Court for the Eastern District of Texas (Sherman Division). The states based their lawsuit on the fact that they are subject to the new regulations and that state employees will be affected Read more
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Final DOL Overtime Regulations Released

Yesterday, the Department of Labor released the final regulations regarding the white collar exemptions for overtime compensation. We will discuss this more here and in our newsletter, but here is a quick run down of what employers need to know: The salary threshold for the white collar exemptions (administrative, executive, professional, creative) is now $913 per week (which equates to $47,476 per year) There will be automatic salary threshold increases every 3 years to maintain the salary level at the 40th percentile in the lowest-wage census region The highly compensated employee exemption salary threshold is changed to $134,004 per year There Read more
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FLSA Lawsuits and Enforcement On the Rise

It doesn’t take much to see that FLSA claims, including lawsuits and Department of Labor audits/enforcement, are on the rise.  All you have to do is turn on your TV, open a newspaper or visit the Internet.  In fact, if you use Uber to get around or follow the NFL or the NBA, you already see several major examples.  The Oakland Raiders cheerleading squad filed a lawsuit against the team in early 2014 alleging that they were employees entitled to minimum wage and overtime.  While both the NFL and the Department of Labor alleged that the cheerleaders, the Raiderettes, should or Read more