Thomas Blanchar v. Standard Insurance Company
736 F.3d 753
| 7th Cir. | 2013Background
- Blanchar sued The Standard for overtime under the FLSA after being hired as Special Markets Director for 403(b)/457 products.
- The Standard moved for summary judgment arguing Blanchar was a bona fide administrative employee exempt from overtime.
- Blanchar’s duties included training staff, guiding sales strategies, advising clients, and promoting 403(b)/457 products.
- Blanchar did not directly sell 403(b)/457 plans; he advised sales staff and prepared materials and presentations.
- Blanchar worked remotely, met his supervisor infrequently, and earned a salary well above the statutory threshold.
- District court granted summary judgment in The Standard’s favor; Blanchar appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Blanchar’s work is directly related to management or general business operations | Blanchar’s duties promoted sales and advised staff, aligning with directly related tasks | Blanchar’s primary function was assisting sales, not management operations | Yes; Blanchar’s duties satisfy directly related prong. |
| Whether Blanchar exercised discretion and independent judgment | Blanchar had substantial discretion in advising, materials, and strategy | Discretion was limited by company guidelines and supervision | Yes; Blanchar exercised independent judgment. |
| Whether Blanchar qualifies as administrative exemption overall | Blanchar’s duties fit within administrative exemption under both prongs | The exemption does not apply given his role relative to sales | Yes; exemption applies; no overtime due. |
Key Cases Cited
- Schaefer-LaRose v. Eli Lilly & Co., 679 F.3d 560 (7th Cir. 2012) (directly related duties for admin exemption in pharma sales)
- Reich v. John Alden Life Ins. Co., 126 F.3d 1 (1st Cir. 1997) (marketing reps exempt when promoting sales; not direct sales)
- John Alden Life Ins. Co., 126 F.3d 1 (1st Cir. 1997) (marketing reps exercised discretion and promoted products)
- Corning Glass Works v. Brennan, 417 U.S. 188 (Supreme Court 1974) (employer bears burden to establish exemption)