U.S. Supreme Court Hears Arguments In Missouri Bank Case
The first day of the U.S. Supreme Court’s 2015-16 term featured a case involving a Missouri bank. The court heard arguments in the case of Valerie Hawkins and Janice Patterson v. Community Bank of Raymore. This case is of critical interest to banks because it will resolve whether Regulation B validly extended the protections and remedies of the Equal Credit Protection Act to loan guarantors. Regulation B has created a legal minefield for bank lending to closely held businesses where owner and spousal guaranties are important for making a safe and sound loan and binding the owner’s commitment to the business venture seeking the loan.
DOL Proposes Changes To FLSA White Collar Exemptions
On June 30, 2015, the U.S. Department of Labor issued proposed rules revamping the Fair Labor Standards Act “white collar” exemptions. The “white collar” exemptions include the executive, administrative, professional, outside sales and computer employee exemptions from the FLSA requirement that all employees be paid overtime wages for time worked more than 40 hours per week. More than doubling the white collar exemptions’ minimum salary requirement from $455 per week ($23,660 per year) to likely at least $970 per week ($50,440 per year) will, according to DOL, make an estimated 4.6 million workers (at minimum) ineligible for the exemption and, in turn, eligible for overtime wages.
Currently, the “white collar” exemptions apply to employees who are compensated on a salary basis at a rate of not less than $455 per week ($23,660 per year) and who meet certain job duty requirements. The “white collar” exemption for highly compensated employees applies when employees are compensated not less than $100,000 per year (including at least $455 per week paid on a salary or fee basis) and customarily and regularly perform any one or more of the exempt duties or responsibilities of an executive, administrative or professional employee. DOL’s proposed rules will more than double the minimum salary amount requirement.