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Employment LitigationFeaturesLJN NewslettersEmployment Law Strategist

The FLSA's Overtime Provisions

By Noah Finkel, Colton Long, Kyle Petersen and John Giovannone

FLSA cases holding against employers typically invoke a canon of construction that the FLSA should be construed broadly, and any of its exemptions narrowly. But a study of the roots of this language shows that the canon has a dubious foundation and that it tends to be applied inconsistently to justify a result.

On July 5, 2017, the U.S. Court of Appeals for the Ninth Circuit issued a decision in McKeen-Chaplin v. Provident Bank, turning the traditional administrative vs. production dichotomy of the administrative exemption on its head. In Provident Bank, the Ninth Circuit held that the bank's mortgage underwriters are not exempt because their duties go to the heart of marketplace offerings rather than the administration of the bank's business. In our view, that decision wrongly interpreted the administrative vs. production dichotomy and parted ways with the Sixth Circuit's sound 2015 decision in Lutz v. Huntington Bank.

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