On May 18, the U.S. Department of Labor’s Wage and Hour Division announced a final rule, effective immediately, to provide a uniform analysis for determining whether an employer qualifies as a “retail or service” establishment for purposes of an exemption from overtime pay applicable to commission-based employees under the Fair Labor Standards Act. The final rule withdrew two regulations listing industries that (1) may be recognized as retail and were eligible for the exemption and (2) were not retail and could not be ineligible for the exemption. Establishments in industries that had been on the non-retail list may now assert they have a retail concept.
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“Retail or Service” Overtime Exemption Final Rule
Published Tuesday, May 19, 2020 1:00 am