Commission Finds That the FLSA Does Not Preempt Arbitration Over Employer’s Decision That Employee is Overtime Ineligible

Rutgers, the State University of New Jersey and Union of Rutgers Administrators, American Federation of Teachers, Local 1766, AFL-CIO

In P.E.R.C. No. 2018-32, the Commission denied a request for a restraint of binding arbitration of a grievance asserting that Rutgers violated University policy and applicable law, including the Fair Labor Standards Act, when it reclassified an employer from non-exempt to exempt under the FLSA.  The Commission found that the FLSA does not prohibit arbitral review of Rutgers’ classification decision and the payment of overtime if the classification decision is found to be erroneous under applicable FLSA law and regulations.

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