The Second Circuit recently examined the scope of the administrative employee exemption under the Fair Labor Standards Act ( FLSA).The court held that employees who did not determine corporate policy or strategy and whose work could be quantified were “production/sales work” employees who did not qualify as administrative employees under the FLSA.
In Davis v. J.P. Morgan Chase & Co ., 587 F.3d 529 (2d Cir. Nov. 20, 2009), the issue before the Court was whether underwriters who worked at a bank and reviewed loans “in accordance with detailed guidelines provided by their employer” were exempt administrative employees under 29 U.S.C.Section 213(a)(1). Because the Second Circuit determined that these loan underwriters were “production/sales work” employees, not administrative employees, the Court held that they were not exempt from the Fair Labor Standards Act (“FLSA”) and therefore entitled to overtime compensation for time worked in excess of 40 hours per week. However, because Davis examined regulations that the Department of Labor has since revised, the precedential value of the opinion is limited in cases involving the financial services industry.
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