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Employers are increasingly being faced with difficult issues with respect to COVID-19, including challenging labor and employment issues. Various federal and state statutes present compliance issues for employers, particularly given the recent enactment of the First Families Act and the CARES Act at the federal level. Existing federal statutes such as the National Labor Relations Act and Title VII of the Civil Rights Act also present labor and employment law challenges for employers. This three-part teleforum series will review federal and state labor and employment issues and options for employers to consider. Federalist Society Labor and Employment Executive Committee members, Tammy McCutchen and G. Roger King will be the speakers for this teleforum series. Ms. McCutchen is a Shareholder with the Littler Mendelson law firm and former head of the U.S. Department of Labor Wage and Hour Division. Mr. King is Senior Labor and Employment Counsel for the HR Policy Association and previously a Partner at the Jones Day law firm.Featuring:-- G. Roger King, Senior Labor and Employment Counsel, HR Policy Association-- Tammy D. McCutchen, Principal, Littler Mendelson PC
Employers are increasingly being faced with difficult issues with respect to COVID-19, including challenging labor and employment issues. Various federal and state statutes present compliance issues for employers, particularly given the recent enactment of the First Families Act and the CARES Act at the federal level. Existing federal statutes such as the National Labor Relations Act and Title VII of the Civil Rights Act also present labor and employment law challenges for employers. This three-part teleforum series will review federal and state labor and employment issues and options for employers to consider. Federalist Society Labor and Employment Executive Committee members, Tammy McCutchen and G. Roger King will be the speakers for this teleforum series. Ms. McCutchen is a Shareholder with the Littler Mendelson law firm and former head of the U.S. Department of Labor Wage and Hour Division. Mr. King is Senior Labor and Employment Counsel for the HR Policy Association and previously a Partner at the Jones Day law firm.Featuring:-- G. Roger King, Senior Labor and Employment Counsel, HR Policy Association-- Tammy D. McCutchen, Principal, Littler Mendelson PC
On April 2, 2018, the Supreme Court decided Encino Motorcars v. Navarro, a case on its second trip to the high court regarding a dispute over the interpretation of the Fair Labor Standard Act’s overtime-pay requirements and whether it exempts service advisors at car dealerships.Congress enacted the Fair Labor Standards Act (FLSA) in 1938 to “protect all covered workers from substandard wages and oppressive working hours,” and it requires overtime pay for employees covered under the Act who work more than 40 hours in a given week. The FLSA exempts from this requirement, however, “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers….” Hector Navarro and other service advisors filed suit against their employer Encino Motorcars, alleging that it violated the FLSA by failing to pay them overtime wages. Encino countered that as service advisors, Navarro and the other plaintiffs fell within the FLSA exemption. The district court ruled in favor of Encino, but the U.S. Court of Appeals for the Ninth Circuit reversed, relying upon a 2011 regulation issued by the Department of Labor (DOL) and indicating that service advisors were not covered by the exemption. The Supreme Court, however, thereafter vacated the judgment of the Ninth Circuit, determining that the regulation at issue was procedurally defective and remanded the case for the Ninth Circuit to reconsider without “placing controlling weight” on the DOL regulation. On remand, the Ninth Circuit, using the distributive canon of statutory interpretation, held that the FLSA exemption did not encompass service advisors. The Supreme Court again granted certiorari.By a vote of 5-4, the Supreme Court reversed the judgment of the Ninth Circuit and remanded the case. In an opinion delivered by Justice Thomas, the Court held that “service advisors are exempt from the overtime-pay requirement of the FLSA because they are ‘salesm[e]n...primarily engaged in...servicing automobiles.’ §213(b)(10)(A)." Justice Thomas’ majority opinion was joined by the Chief Justice and Justices Kennedy, Alito, and Gorsuch. Justice Ginsburg filed a dissenting opinion, which was joined by Justices Breyer, Sotomayor, and Kagan. To discuss the case, we have Tammy McCutchen, Principal at Littler Mendelson, PC. As always, the Federalist Society takes no position on particular legal or public policy issues; all expressions of opinion are those of the speakers.
On April 2, 2018, the Supreme Court decided Encino Motorcars v. Navarro, a case on its second trip to the high court regarding a dispute over the interpretation of the Fair Labor Standard Act’s overtime-pay requirements and whether it exempts service advisors at car dealerships.Congress enacted the Fair Labor Standards Act (FLSA) in 1938 to “protect all covered workers from substandard wages and oppressive working hours,” and it requires overtime pay for employees covered under the Act who work more than 40 hours in a given week. The FLSA exempts from this requirement, however, “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers….” Hector Navarro and other service advisors filed suit against their employer Encino Motorcars, alleging that it violated the FLSA by failing to pay them overtime wages. Encino countered that as service advisors, Navarro and the other plaintiffs fell within the FLSA exemption. The district court ruled in favor of Encino, but the U.S. Court of Appeals for the Ninth Circuit reversed, relying upon a 2011 regulation issued by the Department of Labor (DOL) and indicating that service advisors were not covered by the exemption. The Supreme Court, however, thereafter vacated the judgment of the Ninth Circuit, determining that the regulation at issue was procedurally defective and remanded the case for the Ninth Circuit to reconsider without “placing controlling weight” on the DOL regulation. On remand, the Ninth Circuit, using the distributive canon of statutory interpretation, held that the FLSA exemption did not encompass service advisors. The Supreme Court again granted certiorari.By a vote of 5-4, the Supreme Court reversed the judgment of the Ninth Circuit and remanded the case. In an opinion delivered by Justice Thomas, the Court held that “service advisors are exempt from the overtime-pay requirement of the FLSA because they are ‘salesm[e]n...primarily engaged in...servicing automobiles.’ §213(b)(10)(A)." Justice Thomas’ majority opinion was joined by the Chief Justice and Justices Kennedy, Alito, and Gorsuch. Justice Ginsburg filed a dissenting opinion, which was joined by Justices Breyer, Sotomayor, and Kagan. To discuss the case, we have Tammy McCutchen, Principal at Littler Mendelson, PC. As always, the Federalist Society takes no position on particular legal or public policy issues; all expressions of opinion are those of the speakers.
On January 17, 2018, the Supreme Court heard oral argument in Encino Motorcars v. Navarro, a case on its second trip to the high court regarding a dispute over the application of the Fair Labor Standard Act’s overtime-pay requirements for service advisors at car dealerships.Congress enacted the Fair Labor Standards Act (FLSA) in 1938 to “protect all covered workers from substandard wages and oppressive working hours,” and it requires overtime pay for employees covered under the Act who work more than 40 hours in a given week. The FLSA exempts from this requirement, however, “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers….” Hector Navarro and other service advisors filed suit against their employer Encino Motorcars, alleging that it violated the FLSA by failing to pay them overtime wages. Encino countered that as service advisors, Navarro and the other plaintiffs fell within the FLSA exemption. The district court ruled in favor of Encino, but the U.S. Court of Appeals for the Ninth Circuit reversed, relying upon a 2011 regulation issued by the Department of Labor (DOL) and indicating that service advisors were not covered by the exemption. The Supreme Court, however, thereafter vacated the judgment of the Ninth Circuit. Determining that the regulation at issue was procedurally defective, the Court remanded the case for the Ninth Circuit to construe the FLSA exemption without “placing controlling weight” on the DOL regulation.On remand, the Ninth Circuit, assuming without deciding that the DOL regulation was entitled to no weight, held that the FLSA exemption, on its own terms, did not encompass service advisors. As a result, the court indicated, plaintiffs could proceed against Encino on their claims for overtime. Encino petitioned for certiorari, however, and the Supreme Court agreed to take up the case a second time to consider again whether service advisors at car dealerships are exempt from the Fair Labor Standards Act's overtime-pay requirements. To discuss the case, we have Tammy McCutchen, Principal at Littler Mendelson, PC. This podcast is cosponsored with the Labor & Employment Law Practice Group.
On January 17, 2018, the Supreme Court heard oral argument in Encino Motorcars v. Navarro, a case on its second trip to the high court regarding a dispute over the application of the Fair Labor Standard Act’s overtime-pay requirements for service advisors at car dealerships.Congress enacted the Fair Labor Standards Act (FLSA) in 1938 to “protect all covered workers from substandard wages and oppressive working hours,” and it requires overtime pay for employees covered under the Act who work more than 40 hours in a given week. The FLSA exempts from this requirement, however, “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers….” Hector Navarro and other service advisors filed suit against their employer Encino Motorcars, alleging that it violated the FLSA by failing to pay them overtime wages. Encino countered that as service advisors, Navarro and the other plaintiffs fell within the FLSA exemption. The district court ruled in favor of Encino, but the U.S. Court of Appeals for the Ninth Circuit reversed, relying upon a 2011 regulation issued by the Department of Labor (DOL) and indicating that service advisors were not covered by the exemption. The Supreme Court, however, thereafter vacated the judgment of the Ninth Circuit. Determining that the regulation at issue was procedurally defective, the Court remanded the case for the Ninth Circuit to construe the FLSA exemption without “placing controlling weight” on the DOL regulation.On remand, the Ninth Circuit, assuming without deciding that the DOL regulation was entitled to no weight, held that the FLSA exemption, on its own terms, did not encompass service advisors. As a result, the court indicated, plaintiffs could proceed against Encino on their claims for overtime. Encino petitioned for certiorari, however, and the Supreme Court agreed to take up the case a second time to consider again whether service advisors at car dealerships are exempt from the Fair Labor Standards Act's overtime-pay requirements. To discuss the case, we have Tammy McCutchen, Principal at Littler Mendelson, PC. This podcast is cosponsored with the Labor & Employment Law Practice Group.
On Thursday, August 31, Judge Mazzant of the Eastern District of Texas invalidated the Department of Labor’s Overtime Rule, which would have increased the minimum salary level for overtime-exempt employees from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). Maury Baskin and Tammy McCutchen of Littler Mendelson joined us to discuss the decision and its significance. -- Featuring: Maury Baskin, Shareholder, Littler Mendelson, PC and Tammy D. McCutchen, Shareholder, Littler Mendelson, PC.
On Wednesday, the Department of Labor published a Request for Information seeking comments from the public on the Obama Administration’s 2016 changes to the overtime exemption regulations which would have required payment of overtime to any employee earning less than $913 per week ($47,476 annualized). That regulation was enjoined by the Eastern District of Texas just days before it was to go into effect. Tammy McCutchen, who was Wage and Hour Division Administrator in 2004 when DOL last changed the rules and is a member of the legal team challenging the 2016 regulations, will discuss the RFI, the litigation and the interplay between them. -- Featuring: Tammy D. McCutchen , Shareholder, Littler Mendelson, PC.
Is your organization ready for this change or are you in panic mode? In this podcast you will hear from Littler principal Tammy McCutchen who has been closely monitoring these developments and served as the Department of Labor wage and hour administrator the last time the overtime regulations were revised. Tammy shares her wealth of knowledge and answers frequently asked questions about the Final Rule including: • Will the new rules really go into effect on December 1st? • How much notice do employers need to give employees about the changes? • Does an employer continue to pay the reclassified employees on a salary basis? • Is there a less costly option if an employer decides to reclassify to non-exempt and begin paying overtime? These questions and many more will be answered in this timely podcast.
Tammy McCutchen, Principal with Littler, discusses the DOL’s recent announcement regarding final salary regulations for white collar overtime exemptions. She explains the five steps employers need to start taking now to ensure they are in compliance with the DOL’s Final Rule: from identifying which employees might need a salary increase, to developing plans to reclassify employees and to communicate the changes; Tammy provides in-depth analysis on the impact the new rule might have on your workforce. Tammy also discusses necessary policy changes, and how to define compensable work.
The wait is nearly over to find out what the Department of Labor’s final rule revising white collar overtime exemption regulations will require. In this podcast, Littler shareholder, Tammy McCutchen, Esq., discusses the likelihood of different changes, as well as the potential timing of the Final Rule and its impact on employers. Tammy explores the following frequently asked questions: When will the DOL’s final rule regarding FLSA white collar exemption requirements be published? How long will employers have to comply with the revised overtime exemption regulations? What are the new regulations likely to say about overtime exemption requirements? Tammy suggests ways that employers can begin to prepare now in advance of the Final Rule being posted and talk about some resources available. Littler will issue further communication once the Final Rule is announced.