The Difficulty With Classifying Employees As Exempt

Law360, New York (August 29, 2017, 11:32 AM EDT) -- The Ninth Circuit in McKeen Chaplin v. Provident Savings Bank recently held that mortgage underwriters who worked for Provident Savings Bank were not “administrative employees,” and thus did not qualify for exemption from the overtime protections of the Fair Labor Standards Act.[1] In doing so, the court deepened a split among the circuits on this issue.

The FLSA establishes minimum wage, overtime pay, record-keeping and child labor standards for workers.[2] In relevant part, the FLSA requires that employers pay their employees one and a half times their regular rate of pay when they work over 40 hours per week.[3] Certain employees,...

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