Under the Fair Labor Standards Act ("FLSA"), employers are generally required to pay overtime wages to employees who work longer than 40 hours per week. The FLSA provides several exceptions to this rule. Those "employed in a bona fide executive, administrative, or professional capacity[,] . . . or in the capacity of outside salesman," for example, are exempt from the statute’s minimum wage and maximum hour requirements. Whether mortgage loan officers (who typically assist prospective borrowers in identifying and then applying for various mortgage offerings) qualify for this "administrative exemption" has been the subject of some debate, even within the Department of Labor.
If you’ve attended any of our seminars revolving around wage and hour issues over the past year, you will undoubtedly remember our discussions of Harris v. Superior Court (Liberty Mutual), and the so-called “administrative/production worker dichotomy.” You may also remember an earlier post discussing the California Supreme Court’s ruling last January (which can be found here – https://www.thelelawblog.com/2012/01/articles/wage-and-hour/misclassfied-as-a-matter-of-law-not-so-fast-say-the-supremes/).
The California Supreme Court recently addressed whether insurance claims adjusters qualify for the administrative exemption under California law. (Harris v. Superior Court (Liberty Mutual Insurance Co.).) The Court’s decision in late December 2011, focused on the issue of the “administrative/production worker dichotomy.” Here the Court was looking at whether employees who fall on the “production” side can ever qualify for the administrative exemption.
Continue Reading Misclassfied As A Matter of Law?: Not So Fast Say the Supremes!