Employers today face liability in few areas more than wage-and-hour law. The misclassification of employees as exempt, the hiring of interns and payment of time for “donning and doffing” clothing and equipment are all areas of law significantly interpreted by the courts recently, and only sometimes in favor of employers. In the case of Alvarado v. Corporate Cleaning Service Inc., the Seventh Circuit recently fleshed out an often-ignored exception to an employer’s obligation to pay overtime.
The Fair Labor Standards Act requires employers pay every nonexempt employee time and a half the employee’s regular hourly rate of pay for hours worked in excess of 40 a week. However, the FLSA provides an exception if three conditions are met:
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