White Collar Exemptions = Legal Gray Areas

Yesterday, we gave you the background on a recent court case involving the classification of social workers as exempt. Today, the court’s rationale for concluding that the workers should have been getting overtime pay.

Click here for the introduction to the case.

Many Academic Paths to Job Qualification

Social worker candidates could establish their qualifications with a degree in any one of a variety of specified fields, including counseling, psychology, social work, human services, and child development.

If the degree was in one of the designated fields, DSHS didn’t inquire further. If a candidate’s degree was in some other area of social science (e.g., history, economics, nursing, or pastoral studies), the agency would check if the candidate had at least a requisite number of credit hours in one of the specified fields. If so, the candidate could still qualify.

Positions Didn’t Require Specialized Course of Intellectual Instruction

According to the court, the various routes to qualify for a Social Worker 2 or 3 position undercut DSHS’s argument that specialized intellectual instruction was required. The additional six weeks of training provided by the agency didn’t change the court’s conclusion.

The Ninth Circuit determined that DSHS’s acceptance of varied academic backgrounds demonstrated that the positions at issue didn’t in fact require a specialized course of intellectual instruction. 

How to Comply with California Wage & Hour Law – newly updated for 2012!

Applying the narrow interpretation required for FLSA exceptions, the court concluded that DSHS hadn’t plainly and unmistakably established that the Social Worker 2 and 3 positions were exempt from overtime pay. The case was sent back to the trial court for further evidence. Solis v. State of Washington DSHS, No. 10-35590 (9th Cir. 2011).

Bottom Line: Be Careful When Classifying Jobs as Exempt

The rules on white-collar exemptions to the FLSA can be tricky. Jobs that you may assume are exempt could fall short of the requirements. If you are responsible for evaluating positions in your organization, be sure you understand the FLSA regulations and the DOL’s past interpretations.

Also, get advice if a job falls into a gray area. The consequences of misclassification can be costly if you suddenly find that overtime pay is owed to workers you incorrectly considered exempt. Plus, the FLSA permits a doubling of the amount owed if liquidated damages are awarded. Proceed with caution!

Don’t Become the Next Court Case

Whenever you’re dealing with issues relating to overtime classifications and wage/hour generally, your best defense is a strong offense.

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• Bonuses, profit-sharing plans, and tips
• Overtime and double-time wages
• Alternative workweeks
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• Paid time off—vacation, PTO, holidays, and sick leave
• Unpaid time off
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Download your free copy of Paying Overtime: 10 Key Exemption Concepts today!