• DOL Issues Three Option Letters Addressing Overtime Exemption Classifications
  • November 29, 2006
  • Law Firm: Parker Poe Adams & Bernstein LLP - Charlotte Office

    In recent weeks, the Department of Labor’s Wage and Hour Division issued a number of opinion letters answering questions regarding the application of the Part 541 overtime exemption regulations to particular classes of employees.  While these opinions do not create a binding legal precedent, they give a good idea of how Wage and Hour views certain employees during enforcement actions.



    ·                    Non-Resident Store Managers.  DOL stated that store managers can claim the Executive exemption, even if their working hours do not overlap with their subordinate employees.  The exemption requires that the manager supervise the work of two or more full-time employees.  DOL clarified that this does not mean that the manager has to be physically present in order to exercise supervisory authority.



    ·                    Mortgage Loan Officers.  DOL confirmed that mortgage brokers, originators and consultants typically qualify as exempt under the Administrative exemption.  The agency concluded that their employees’ primary duties involve the collection and analysis of information from the customer in order to determine whether the customer qualifies for a particular loan.  This is deemed support rather than direct production work, and therefore qualifies for the exemption.



    ·                    Loss Prevention Managers.  A retail chain’s employees dedicated to implementation of its loss prevention and shortage control program were deemed exempt Administrative employees.  DOL concluded that this job involves administrative support work, and includes exercise of significant discretion and independent judgment by the managers.