Anani v. CVS RX Services, Inc.
730 F.3d 146
| 2d Cir. | 2013Background
- Anani, CVS pharmacist from 2003 to July 2009, sues for FLSA overtime exemption denial for the period Dec 18, 2007 to July 20, 2009.
- Appellant’s base salary exceeded $1,250 per week and was guaranteed; he was classified as salaried and exempt from overtime.
- Appellant regularly worked 16–36 extra hours weekly, paid via a Compensation Rate plus Premium Pay, increasing total compensation beyond $100,000 annually.
- Appellant’s compensation included a guaranteed weekly salary plus extras; overtime was paid only for hours beyond the baseline 44 per week per the plan.
- The district court held Anani exempt under the highly compensated employee provisions of 29 C.F.R. Part 541; this court reviews de novo the summary judgment on FLSA exemptions.
- Appellant concedes the duties requirement is met; the dispute centers on the salary basis and highly compensated exemptions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the HC employee exemption applies. | Anani argues 541.601/604 require more than guaranteed pay. | CVS contends 541.601 precludes if 604’s reasonable relationship not met. | Yes; exemption applies. |
| Whether 541.604’s extras rule negates exemption. | Extras with guaranteed minimum violate salary basis. | Extras permitted if guaranteed minimum maintained. | Extras rule satisfied; does not defeat exemption. |
| Whether salary basis requirement is met. | Guaranteed base violates salary basis due to high earnings. | Base salary >$455/week with no improper deductions satisfies salary basis. | Salary basis satisfied. |
Key Cases Cited
- Lawrence v. Cohn, 325 F.3d 141 (2d Cir. 2003) (de novo review of summary judgment)