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ARTICLE · 03 JUNE 2020

DOL Withdraws FLSA Inside Sales Exemption Lists

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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The U.S. Department of Labor ("DOL") issued a new final rule on May 19, 2020 recasting the Fair Labor Standard Act's ("FLSA") inside sales exemption, Section 7(i).

United StatesEmployment and HR
Morgan Tanafon
Morgan Tanafon
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The U.S. Department of Labor ("DOL") issued a new final rule on May 19, 2020 recasting the Fair Labor Standard Act's ("FLSA") inside sales exemption, Section 7(i). This new rule - which took effect immediately - repeals two lists that the DOL used for decades to interpret the exemption. The first list categorized businesses which lacked "retail concept," thus disqualifying the business from the exemption; the second list denoted establishments which "may be recognized as retail." Now, in lieu of operating from these static lists, the DOL will instead evaluate businesses on a case-by-case basis to determine if they qualify for the exemption. The withdrawal of these lists expands the inside sales exemption to cover many industries and businesses that were categorically unable to qualify for the exemption under the previous rules.

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