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Supreme Court issues two FLSA employer-friendly decisions

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in Office Management,Payroll Management

Employees’ road in seeking to sue their employers for violations of the Fair Labor Standards Act just got substantially rockier, thanks to two U.S. Supreme Court decisions issued at the end of the 2017-2018 term. Here are the highlights.

Case No. 1: FLSA exemptions. Encino Motors, LLC v. Navarro (No. 16-1362, 2018) addressed whether service advisors at car dealerships were exempt employees. The appellate court took the traditional route and ruled that FLSA exemptions should be interpreted narrowly. The Supreme Court disagreed and reversed the appellate court’s decision.

According to the court, since the FLSA doesn’t say that exemptions should be construed narrowly, they should, instead, be given a fair reading. A fair reading depends on the context, the court noted.

Key: Exemptions must be weighed as part of the law’s overall approach to overtime pay. Not a slam dunk: While it may now be theoretically easier to cl...(register to read more)

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