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Only official editions of the Federal Register provide legal notice to the public and judicial notice to the courts under 44 U. Learn more here. This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format. Section 7 i of the Fair Labor Standards Act FLSA or Act provides an exemption from the Act's overtime compensation requirement for certain commissioned employees employed by a retail or service establishment.
Removing these lists promotes consistent treatment when evaluating section 7 i exemption claims by treating all establishments equally under the same standards and permits the reevaluation of an industry's retail nature as developments progress over time.
Because part is an interpretive rule, the provision in the Administrative Procedure Act APA requiring publication of a notice of proposed rulemaking does not apply. See 5 U. Publication of this document constitutes a final action under the APA. This rule is intended to promote consistent treatment across all industries and reduce confusion when determining eligibility for claiming the section 7 i exemption.
This rule does not impose any new requirements on employers or require any affirmative measures for regulated entities to come into compliance. Pursuant to the Congressional Review Act, 5 U.
Finally, this final rule is not an E. The FLSA generally requires covered employers to pay nonexempt employees overtime compensation for time worked in excess of 40 hours per workweek. See 29 U. Section 7 i of the Act was enacted to relieve employers in retail and service industries from the obligation of paying overtime compensation to certain employees paid primarily on the basis of commissions.
Section The Department's view was that the establishments on the list could not qualify as retail or service establishments eligible to claim the section 7 i exemption. See 36 FR Aug. The Department hereby withdraws the regulatory provision found at 29 CFR Establishments which had been listed as lacking a retail concept may now assert under part that they have a retail concept and may be able to qualify as retail or service establishments. For example, an industry may gain or lose retail characteristics over time as the economy develops and modernizes, or for other reasons.
A static list of establishments that absolutely lack a retail concept cannot account for such developments or modernization, which could have caused confusion for establishments as they tried to assess the applicability and impact of the list. Martin v. The Refrigeration Sch. TaxMasters, Inc. Cruises Only, Inc. But see, e. Great Am. SelectQuote Ins. Start Printed Page Supp. Lindstrom Air Conditioning, Inc. The Department further withdraws the regulatory provision found at 29 CFR See, e.
Parnham, F. Cleaning Serv. Swift Investments, Inc. Daniel Funeral Home, Inc. And the Department will promote consistent treatment for purposes of the section 7 i exemption by applying the same retail concept analysis to all establishments. Nothing in this action should be construed to suggest that any particular type of establishment previously listed by the Department is, or is not, a retail establishment. Mortgage Bankers Ass'n, U. Accordingly, the Department is not required to engage in notice-and-comment rulemaking to withdraw the lists today, and it declines to do so as it has declined in the past.
The authority citation for part continues to read as follows:. Authority: Secs. See 29 CFR DDR, Inc. Delcorp, Inc. But see Alvarado v. Cleaning Servs. Some of the authorities cited have subsequently been called into question. Peoples Telephone Union of Maryville, Mo. Dodd-Frank Wall Street Reform documents in the last year. Government Contracts 54 documents in the last year. Fishery Management documents in the last year.
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