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Fifth Circuit: Clarity on Highly Compensated Employee Exception to FLSA Overtime Requirements

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August 21, 2019

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In Faludi v. U.S. Shale Solutions, the Fifth Circuit Court of Appeal confirmed that an employee’s guaranteed day rate satisfied the Fair Labor Standard Act’s (FLSA) highly compensated employee (HCE) exemption, even though the employee was only paid twice monthly.  The HCE threshold—which currently requires the employee to be paid more than $100,000 per year and at least $455 a week on a salary or fee basis—only requires that the employee “regularly receive[s]” the predetermined amount on a weekly or less frequent basis.  There is no requirement that the cash amount be calculated on weekly or less basis.

In addition, the Fifth Circuit also stated that the amount the HCE is paid is not required to bear a “reasonable relationship” to the amount actually earned. Employers should take care when setting highly compensated exempt employee pay to ensure compliance with FLSA requirements.

Action Items

  1. Have highly compensated exempt employee pay reviewed for consistency with this ruling.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

Fifth Circuit: Day Rate Can Meet Salary Requirements Under FLSA White Collar Overtime Exemption

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All Employers with LA, MS, and TX Employees

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August 21, 2019

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In Faludi v. U.S. Shale Solutions, L.L.C., the U.S. Court of Appeal for the 5th Circuit stated that a guaranteed day rate providing compensation over $455 can meet the Fair Labor Standard Act (FLSA) salary requirements for the white collar overtime exemption. Further, the FLSA’s reasonable relationship test does not apply to the highly compensated exemption.

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5th Circuit: Title VII Does Not Protect Sexual Orientation, Which Includes Heterosexual Orientation

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All Employers with Employees in LA, MS, and TX

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April 19, 2019

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In O’Daniel v. Industrial Service Solutions, the 5th Circuit Court of Appeal reaffirmed its position that sexual orientation is not a protected class under Title VII of the Civil Rights Act, including heterosexual orientation. Specifically, “’[s]ex’ discrimination has been held to encompass discrimination based on sexual harassment or sexual stereotyping,” but does not include sexual orientation.

There, an HR manager posted to her personal Facebook account a picture of a man in a dress shopping at Target and objecting to his ability to use female facilities with the employee’s daughters. When her supervisors, one of whom is a member of the LGBTQ community, became aware of the post, they attempted to terminate her employment, but ultimately disciplined her. Subsequently, the employee claimed, in part, she was subject to discrimination and retaliation by her supervisor following the Facebook post, because she was heterosexual and she opposed discrimination on the basis of her heterosexual orientation.

The court stated that because sexual orientation is not protected under Title VII, opposing her alleged discriminatory treatment as a heterosexual was not a protected activity.

Action Items

  1. Have discrimination policies reviewed for consistency with this ruling.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

Fifth Circuit: Clarification on Small Vehicle Exception to the Motor Carrier Act Overtime Exemption

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All Employers with LA, MS, TX Employees Operating Commercial Motor Vehicles

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May 16, 2018

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(888) 378-2456

In Carley v. Crest Pumping Technologies, LLC, the Fifth Circuit recently clarified ambiguities in the small vehicle exception to the Motor Carrier Act (MCA) overtime exemption. Generally, the overtime requirements under the Fair Labor Standards Act (FLSA) do not apply to employees covered by the MCA, except for employees who operate vehicles weighing 10,000 lbs. or less under certain conditions (“small vehicle exception”).