During 2024 we have reported on several high-profile cases that have challenged wage-related regulations issued by the U.S. Department of Labor – including tips, independent contractors, and the white-collar exemptions to the minimum wage and overtime requirements of the Fair Labor Standards Act.
This week, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit issued a decision that could have far-reaching effects on future cases reviewing DOL regulations.
In Mayfield v. U.S. Department of Labor, the Fifth Circuit panel held that the DOL did have the authority to use a minimum salary in determining whether an employee qualified for the executive-administrative-professional, or “EAP,” exemption under the FLSA.
Plaintiff Robert Mayfield operates thirteen fast-food restaurants in Austin, Texas. He challenged the minimum salary under Trump Administration regulations issued in 2019 (and now superseded by regulations issued by the Biden Administration), arguing that the threshold “forces him to pay a higher salary to all managers regardless of performance, leaving him with insufficient funds to reward the best performers.”
According to Mr. Mayfield, the DOL had no “statutory authority” to use salary level as a factor in determining whether an employee qualifies for the EAP exemption. A federal district court in Texas ruled in favor of the DOL, and Mr. Mayfield appealed. The Fifth Circuit panel agreed with the lower court, finding that the DOL was entitled to...
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