The DOL’s New Rule Removes Presumption Against Overtime Exemption For Possible Retail And Service Establishments, Broadening Availability To Employers
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On May 19, 2020, the US Department of Labor (DOL) issued its final rule likely expanding the FLSA’s Section 7(i) overtime exemption for commission-based workers in retail and service industries by withdrawing the long-standing, historical list of businesses that the DOL identified as falling within or outside of what it deemed to be a retail or service establishment.

Under the final rule, which was issued without notice and comment and takes effect immediately, the DOL removes the lists of business with “no retail concept” and that “may be recognized as retail” from the regulations.  This means, that in order in doing so, business establishments that were excluded may now be considered as offering a retail product or service and qualify for the exemption.

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