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What North Carolina Employers Need to Know
by Emily Massey and Genesis Torres
On January 5, 2026, the U.S. Department of Labor’s Wage and Hour Division (USDOL) released a batch of opinion letters tackling narrow questions under the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA). This article will address four of the opinion letters that we found to be most relevant to North Carolina employers.
EMPLOYERS ARE NOT REQUIRED TO USE FLSA EXEMPTIONS
We often encounter the question of whether an employee is subject to overtime requirements under the FLSA. If an employee’s position falls within one of the FLSA’s exemptions, then overtime pay is not required. But, if an employee does fall within the exemption, must the employer use it? The USDOL confirmed that the answer is no.
The opinion letter involved a Licensed Clinical Social Worker whose employer reclassified her as non-exempt after a reorganization. The USDOL confirmed that the employee’s position likely still qualified for the “learned professional” exemption under Section 13(a)(1) of the FLSA because the position’s primary duties required advanced knowledge obtained through specialized instruction.
However, the USDOL made clear that “even if all the criteria for an FLSA exemption are met, it is the employer —not the employee — that claims the exemption.” Employers retain full discretion to classify qualified employees as non-exempt. However, switching from exempt to...
This article is commentary on matters of public concern. It is not legal advice. Consult licensed counsel about specific situations. This is Wrong. This is Illegal The President of the United Stat...