DOL clarifies FLSA exemption applicable to retail and service employees
The Department of Labor (DOL) started off 2026 by issuing numerous opinion letters on issues arising under the Fair Labor Standards Act (FLSA). Opinion Letter FLSA2026-4 addresses questions regarding the overtime exemption applicable to retail and service employees.
Defining the retail and service employee exemption
The FLSA requires employers to pay nonexempt employees one and one-half times their regular rate of pay for any hours worked over 40 hours in a workweek. Section 7(i) of the FLSA exempts retail and service employees from the overtime requirement if:
· Their regular rate of pay exceeds 1.5 times the applicable minimum wage; and
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