Supreme Court To Address Conflict Regarding FLSA Salary Basis Test

On June 24, the U.S. Supreme Court granted certiorari in Auer v. Robbins, an appeal brought by St. Louis Police Department sergeants and lieutenants classified by their employer as exempt from overtime pay under the Fair Labor Standards Act (FLSA). In Auer, the Eighth Circuit rejected the police employees' argument that they were non-exempt employees under the FLSA because they were "subject to" pay docking for infractions of safety rules, in violation of the FLSA, and one employee had suffered an impermissible deduction. The Eighth Circuit held that neither the employer's disciplinary policy nor the rare deduction should result in the loss of exempt status for the employee who suffered the harm or for any other employee.

For the full story, please view the PDF.