May 18, 2020 / 7:30 PM / 18 days ago

DOL expands overtime pay exemption for retail, service businesses

The U.S. Department of Labor on Monday tossed out a nearly 60-year-old rule that had barred more than 130 types of businesses, including dry cleaners, travel agencies and tax preparers, from claiming they were “retail or service establishments” exempt from paying overtime premiums to workers who receive commissions.

The department’s Wage and Hour Division (WHD) in a rule published in the Federal Register said the list created in 1961 and updated nine years later had created confusion and was ignored by many federal judges. WHD also scrapped a separate list of businesses that it had said “may be” entitled to the exemption under the Fair Labor Standards Act, which included coal yards, refrigerator repair shops, and massage parlors.

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