Overtime Exemptions: Application of Policy, Not the Policy Itself, Focus of Overtime Exemption Eligibility

When it comes to losing the ability to claim white collar exemptions apply to specific jobs employers’ application (or lack thereof) of their policies matter more than the policy itself. In a Fifth Circuit Court of Appeals case, Escribano v. Travis County, Texas, 947 F.3d 265, 274 (5th Cir. 2020), the court determined that in order for an employer to lose the ability to claim white-collar exemptions the employer must have actually implemented impermissible deductions. The policy by itself is not enough for the exemption to be lost. Keep reading to learn why and how to review your policies to avoid unintentionally making improper deductions that could cause your company to lose the ability to claim white-collar exemptions applied to specific jobs.