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Home » Fewer Commissioned Employees Eligible for Overtime Under New Employer-Friendly Department of Labor Rule

Fewer Commissioned Employees Eligible for Overtime Under New Employer-Friendly Department of Labor Rule

By David Long-Daniels & Joshua Y. Joel on May 28, 2020
Posted in Department of Labor, earned wages, Employee Policies, FLSA, Labor, Labor & Employment, overtime, wages
The United States Department of Labor (DOL) issued revised regulations on May 18, 2020, effectively expanding the exemptions under Section 7(i) of the Fair Labor Standards Act (FLSA), which permits certain commissioned employees of “retail or service establishments” to be considered exempt from overtime. Designed to “reduce confusion,” the new rule, which takes effect immediately, removes from the existing regulations two lists: a partial list of industries that were presumed to have “no retail concept” and a non-exhaustive list of business that “may be recognized as retail.”1 By doing so, certain businesses previously on the non-retail list may now qualify for the Section 7(i) exemption if they otherwise meet the DOL’s criteria for the exemption. In other words, all businesses, regardless of their industry, will be treated consistently. This change therefore may increase the number of employers that qualify as “retail” businesses falling under the Section 7(i) exemption.

Read the full GT Alert, “Fewer Commissioned Employees Eligible for Overtime Under New Employer-Friendly Department of Labor Rule.”

Tags: Department of Labor, DOL, flsa, Greenberg Traurig, GT Insight, GT Law, overtime, overtime exemptions, overtime regulations
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Photo of Joshua Y. Joel Joshua Y. Joel

Joshua Joel focuses his practice on the representation of employers on matters related to discrimination, wage and hour, Family Medical Leave Act, OSHA investigations, negligent hiring and retention, and directors and officers liability. He manages pre-suit settlement negotiations, mediation, discovery, depositions, and pre-trial…

Joshua Joel focuses his practice on the representation of employers on matters related to discrimination, wage and hour, Family Medical Leave Act, OSHA investigations, negligent hiring and retention, and directors and officers liability. He manages pre-suit settlement negotiations, mediation, discovery, depositions, and pre-trial preparation. Joshua’s experience includes serving as a staff attorney for the Eleventh Circuit Court of Appeals and the defense of employers in EEOC and OSHA administrative proceedings, as well as litigation in state and federal court.

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