Auer v. Robbins

Summary

        The U.S. Supreme Court has determined that police sergeants and a lieutenant were not entitled to overtime pay under the Fair Labor Standards Act of 1938 (FLSA).

        Certain sergeants and a lieutenant employed by the St. Louis police department, including Francis Auer, brought an action against members of the St. Louis Board of Police Commissioners. Auer contended that they were entitled to overtime pay under Section 7(a)(1) of the FLSA. The Board contended that the officers were not entitled to overtime pay because they came within the exemption provided by Section 213(a)(1) for administrative or professional employees. Under the exemption, employees are considered to be paid on a salary basis if they get the same amount on a regular schedule and the amount is not adjusted for quality or quantity of work. Auer argued that the salary-basis test was not met because the police manual stated that their salary could be reduced based on the quality or quantity of work performed and because their jobs could not be considered administrative or professional in nature. The district court found that Auer was paid on a salary basis and that most of the duties criterion was satisfied as well. The appellate court found that both the salary and duties tests were satisfied.

        The U.S. Supreme Court affirmed. The Secretary of Labor's interpretation of FLSA is controlling unless plainly erroneous or inconsistent with the regulations. The Secretary's amicus brief stated that under the salary-basis test an employee is denied exempt status when the employee's pay is covered by a policy permitting disciplinary or other deductions in pay as a practical matter. The Secretary's view was that Auer's pay was not subject to disciplinary deductions since the police manual did not effectively communicate pay deductions were an anticipated form of punishment for employees in Auer's category. The fact that one sergeant had a salary deduction as a form of discipline did not make the salaries of all similar positions exempt.

        

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