On Monday of this week, the U.S. Supreme Court reversed the Ninth Circuit when it ruled in Encino Motorcars, LLC v. Navarro that auto dealership service advisors are exempt from the FLSA’s overtime requirements. The justices’ analysis led the five-justice majority to conclude that service advisors fall squarely within the applicable exemption for “any salesman, partsman or mechanic primarily engaged in selling or servicing automobiles.” 29 U.S.C. § 213(b)(10)(A). This case, however, promises broad national impact because the majority rejected the longstanding principle established through decades of FLSA jurisprudence that exemptions should be construed narrowly.
California and New York have each passed laws that will gradually raise their state’s minimum wage rate to $15 per hour. This is a stunning development coming just four years after a small group of New York fast food workers initiated the call for the increase. The new laws will impact millions of Americans and put pressure on other jurisdictions and business to make similar increases in other parts of the country. We briefly break down the new laws below.
The Department of Labor has released its long-awaited notice of proposed rulemaking updating the Fair Labor Standards Act’s white collar overtime exemptions. The DOL released the proposed rule on Tuesday morning and will invite interested parties to submit written comments over the next two months. The revisions would more than double the minimum salary threshold for the law’s white collar exemptions, which the White House expects would immediately entitle approximately five million additional workers to overtime pay, and they also provide for future automatic increases. We take a look at the proposal and its potential implications below.