Supreme court overtime


The Basics of the Supreme Court’s Overtime Decision

In a unanimous decision, the Supreme Court has ruled that workers who earn overtime must receive time-and-a-half pay for any hours worked over 40 in a week. The decision, which was issued on Monday, affects millions of workers across the United States.

What the Court Decided


In a much-anticipated decision, the Supreme Court ruled that workers who are paid a salary may be eligible for overtime pay under the Fair Labor Standards Act (FLSA). The Court’s decision in Encino Motorcars, LLC v. Navarro temporarily overturns a decisions by the Obama administration that had extended overtime pay protections to workers who are paid a salary.

The Obama administration had issued regulations that would have raised the salary threshold for workers who are exempt from overtime pay from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). The new regulations were slated to go into effect on December 1, 2016, but were temporarily blocked by a federal court injunction.

The Supreme Court’s decision means that the new overtime regulations will not go into effect until further notice. The Court did not rule on the merits of the regulations, but instead found that the Department of Labor (DOL) did not have the authority to issue regulations that would automatically update the salary threshold every three years.

The DOL is currently working on new regulations that will set a higher salary threshold for workers who are exempt from overtime pay. These regulations are expected to be released in 2019.

How the Court Decided


The court’s decision was based on a close reading of the Fair Labor Standards Act, which governing overtime pay. The relevant section of the law says that employees must receive time-and-a-half pay for work beyond 40 hours in a week “unless such employee is employed in a bona fide executive, administrative, or professional capacity.”

The court said that an employee’s primary duties must fall into one of those three categories to be exempt from overtime. That is a much narrower standard than the one adopted by the Obama administration in its 2016 regulation.

The administration had said that employees could be considered exempt if they spent more than half their time on executive, administrative or professional duties as defined by the government. But the court said that an employee’s “duties test” under the law must focus on what the employee actually does, not on government regulations about job titles or work week percentage breakdowns.

What the Court’s Decision Means for Employers and Employees


The U.S. Supreme Court’s decision in Encino Motorcars, LLC v. Navarro is a significant victory for employers in the area of overtime law. The Court held that service advisors at automobile dealerships are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). This decision will have a broad impact on other industries where employees are paid a salary and perform exempt job duties.

The Court’s decision resolves a circuit split on the question of whether service advisors are exempt under the FLSA. The Ninth Circuit Court of Appeals had previously held that service advisors are not exempt, while the Fifth, Seventh, Eighth, and Tenth Circuits had held that they are exempt. The Supreme Court’s decision means that service advisors nationwide will be classified as exempt from overtime pay under the FLSA.

The ruling is also significant because it establishment precedent that an employee does not need to be engaged in sales activity to be classified as exempt under the FLSA. Prior to this ruling, many courts had required that employees perform some type of sales activity in order to qualify for the exemption. But the Supreme Court held that sales activity is not necessary, and that any employee who performs executive, administrative, or professional duties (as defined by regulations issued by the Department of Labor) can be classified as exempt regardless of whether they engage in sales activity.

This ruling will have a broad impact on many industries beyond automobile dealerships. Any employer who has employees who are paid a salary and who perform executive, administrative, or professional duties (as defined by the Department of Labor’s regulations) can now classify those employees as exempt from overtime pay under the FLSA.

The Impact of the Supreme Court’s Overtime Decision

The Supreme Court’s recent decision on overtime will have a profound impact on American workers and businesses. The ruling will make it harder for employers to skirt the overtime rules, and will ensure that more workers are paid for their extra hours. This is a major victory for workers’ rights, and will help to level the playing field between workers and employers.

On Employers


The recent Supreme Court decision on overtime will have a big impact on employers. The court ruled that employees who work more than 40 hours a week must be paid time-and-a-half for their overtime, regardless of their salary level.

This means that employers will need to start tracking their employees’ hours more carefully, and they may need to adjust staffing levels to keep OT costs under control. Some employers may also choose to raise salaries to avoid paying overtime, although this could lead to other problems (like wage inflation).

Overall, the ruling is likely to cost employers billions of dollars in extra labor costs. But it’s also possible that it will lead to more hours of work for some employees, as companies try to get more value out of their workers.

On Employees

The recent Supreme Court decision on overtime will have a major impact on employees across the country. The Court ruled that workers who are paid hourly and work more than 40 hours in a week must be paid time-and-a-half for any overtime hours. This ruling will affect an estimated 4 million workers who are currently not receiving overtime pay.

The ruling is a victory for workers’ rights advocates, who have long argued that workers are being exploited by employers who require them to work excessive hours without proper compensation. The overtime rules are designed to protect workers from being exploited and to ensure that they are fairly compensated for their work.

The Supreme Court’s decision will have a major impact on the economy, as employers will now be required to pay millions of workers billions of dollars in overtime wages. This will likely lead to higher prices for goods and services, as businesses pass on their increased labor costs to consumers. It remains to be seen how the economy will adjust to this new reality, but one thing is certain: the lives of millions of workers across the country will be improved as a result of this ruling.

On the Economy


The United States Supreme Court’s recent decision in Epic Systems Corp. v. Lewis has generated a great deal of discussion and debate. The case involved the question of whether employees who are subject to arbitration agreements can be required to waive their right to participate in class or collective actions as a condition of employment. In a 5-4 decision, the Court held that such waiver clauses are enforceable under the Federal Arbitration Act.

The impact of this decision is likely to be felt most acutely in the area of overtime pay. Currently, there are numerous lawsuits pending across the country alleging that employers have violated the Fair Labor Standards Act by misclassifying employees as exempt from overtime compensation. If these lawsuits proceed as class or collective actions, they would allow hundreds or even thousands of employees to join together and assert their claims in a single action.

The Epic Systems decision, however, will make it much more difficult for employees to proceed with such lawsuits. Instead, they will be forced to arbitrate their claims individually, which will make it much harder for them to recover any damages. Moreover, the Supreme Court’s decision is likely to discourage employees from bringing overtime claims in the first place, as they will now know that they will have to go through the trouble and expense of arbitrating their claims individually.

In light of these developments, it is clear that the Epic Systems decision will have a significant impact on the economy. Fewer overtime claims will be brought, and those that are brought will be much harder for employees to win. This will result in millions of dollars in lost wages for workers across the country and could lead to job losses as employers cut costs in response to the reduced demand for overtime hours.

The Future of the Supreme Court’s Overtime Decision

The Supreme Court’s decision on overtime may have a profound impact on employers and employees across the country. The Court’s decision will not only affect how Overtime is calculated, but also how employees are classified as exempt or non-exempt. The decision will also have an impact on employee’s ability to earn overtime pay.

What Employers Need to Do


In May 2016, the U.S. Supreme Court ruled in favor of the plaintiffs in a case that challenges the current overtime regulations. The regulation, which was promulgated by the Department of Labor (DOL) in 2004, provides that employees who work more than 40 hours in a week and earn less than $455 per week ($23,660 per year) must receive time-and-a-half pay for all overtime hours worked. The Court’s ruling means that this regulation is no longer valid and that employers are not required to pay overtime to employees who earn less than $23,660 per year.

Employers should take note of the following implications of the Court’s ruling:

  1. Employees who are currently exempt from overtime under the 2004 regulation will become eligible for overtime pay if they work more than 40 hours in a week.
  2. Employers will need to track the hours worked by all employees, even those who are exempt from overtime under other regulations.
  3. Employees who are paid a salary may now be entitled to overtime pay if they work more than 40 hours in a week. Employers will need to determine whether their salary employees are exempt from overtime under other regulations (e.g., the executive exemption).
  4. Employers will need to determine whether employees who are currently classified as exempt from overtime under the 2004 regulation meet the duties test for other exemptions (e.g., executive, administrative, professional).
    What Employees Need to Do

    The U.S. Supreme Court’s decision in the case of Epic Systems v. Lewis has major implications for workers who may be entitled to overtime pay. The Court’s ruling means that employers can now require employees to sign arbitration agreements that prevent them from banding together to file class-action lawsuits over wage-and-hour issues.

This means that, if you are an hourly worker and you believe your employer has violated the Fair Labor Standards Act (FLSA) by not paying you overtime, you will likely have to pursue your claim through individual arbitration instead of joining with other workers in a class-action lawsuit.

If you are currently working without an arbitration agreement in place, your employer may now require you to sign one as a condition of continued employment. And if you are already working under an arbitration agreement, your employer may try to revise the agreement to make it even more restrictive.

If you find yourself in either of these situations, there are some things you can do to try to protect your rights:

  1. Read any arbitration agreement before you sign it. Make sure you understand what it requires and what rights it takes away from you. Do not sign an agreement that you do not fully understand or that is unfair in any way.
  2. If possible, negotiate with your employer over the terms of the agreement. If there are provisions that you object to, try to get them removed or changed before you sign the agreement.
  3. If you have already signed an arbitration agreement and your employer tries to make changes that are unfavorable to you, consult with an experienced employment attorney to see if the changes are legally binding on you. In some cases, changes made after the fact may not be enforceable against employees who have already signed the original agreement.
  4. Be aware of deadlines for filing claims under state and federal law. Filing deadlines can be as short as 60 days from the date of the alleged violation, so it is important not act too late and lose your right to pursue a claim entirely
    What the Government Needs to Do

    The Fair Labor Standards Act guarantees workers the right to overtime pay for any hours worked over 40 in a week. But a recent Supreme Court ruling has created a loophole that allows employers to avoid paying overtime by classifying workers as “supervisors” even if they have no real supervisory duties.

The government needs to close this loophole by clarifying the definition of “supervisor” and ensuring that workers who are paid a salary but are not actually supervising others are still entitled to overtime pay. The government also needs to increase enforcement of the overtime laws and make it easier for workers to recover unpaid wages.

Only Congress can fix this problem, but the Obama administration can take some immediate steps to protect workers’ rights and make sure that workers who are entitled to overtime pay actually receive it.


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