FLSA Exemptions Standard Shifted By SCOTUS

Posted on 04-05-2018 by
Tags: Fair Labor Standards Act , FLSA

Fair Reading vs. Narrowly Construed 

In a 5-4 decision, the Supreme Court of the United States replaced the narrow construction standard for FLSA exemptions with a new “fair reading” standard. Lower courts will be required to take a broader approach when determining if an exemption applies.


Less Burden On Employers

"If they have equal footing and are all entitled to fair interpretation, I think that opens up some new arguments for applying these exemptions in a [broader] form than they have in the past," Robinson said. "It sounds almost like there's going to be some sort of balancing interest as opposed to narrowly construing it against employers. It will open up the possibility that employers will be able to apply exemptions where they haven't been able to in the past."  High Court Endorses Broader View Of FLSA Exemptions, Law360, April 2, 2018

Read the new standard from the Encino Motorcars case and analysis below:




 

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