Justices Signal Liberal Interpretation of Overtime Exemption

Apr 5, 2018, 9:19 PM

(from Venable) A ruling this week by the Supreme Court provides a bit more clarity on the long-running dilemma involving whether to adjust salaries and schedules in the event of changes to the federal overtime rule. Specifically, Justice Clarence Thomas rejected the notion that exemptions under the Fair Labor Standards Act should be "narrowly construed" in favor of a less stringent "fair reading" standard. This could make it easier for employers to justify classifying employees as exempt, thereby allowing them to avoid paying overtime. In her dissent, Justice Ruth Bader Ginsburg suggested that this interpretation goes against years of precedent.

More at Venable

More of NBOA's analysis of the FLSA proposals

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