Something's cooking, but it isn't overtime


Overtime has been a hot topic for several months with the proposal and final adoption in August 2004 of the new FairPay regulations revising the "white collar" exemptions to the Fair Labor Standards Act's (FLSA) overtime requirements. Lawsuits filed by employees claiming overtime have been - and are anticipated to continue to be - on the rise. So it isn't surprising that many of you are taking a closer look at whether your employees should be classified as nonexempt (requiring payment of overtime at one and a half times the regular rate of pay) or exempt.

The federal court for the Western District of Wisconsin recently decided a case involving a chef's challenge to his classification as an exempt executive employee. Although the ruling was made using the tests that applied before the final adoption of the FairPay regulations, it's still useful in providing guidance on how the surviving elements of the executive exemption tests may be interpreted by federal courts applying the regulations. It also may provide guidance on how the Wisconsin Labor Standards Bureau and courts may apply Wisconsin's overtime laws. Read More...