Do salary deductions negate overtime exemption?
Abstract: Employers have long struggled with the exempt vs. nonexempt quandary. When an employee filed a lawsuit alleging that she’d not been paid overtime pursuant to the Fair Labor Standards Act, the Sixth Circuit examined whether an employer’s policy of making deductions from plaintiffs’ wages caused those plaintiffs to lose their exempt status from required overtime payments because they failed the test for salaried status. Baden-Winterwood v. Life Time Fitness, 566 F.3d 618 (6th Cir. Ohio 2009). Auer v. Robbins, 519 U.S. 452 (U.S. 1997).