Winter

Anani was employed by CVS as a pharmacist from 2003 until July 20, 2009. Stipulating to a two-year statute of limitations, he limited his claims for unpaid overtime under the Fair Labor Standards Act (FLSA) to the period from Dec. 18, 2007, to July 20, 2009, during which his guaranteed base salary—grounded on a 44-hour work week (paid bi-weekly)—exceeded $1250. CVS classed Anani as exempt from the FLSA’s time-and-a-half overtime requirement. Further, additional compensation paid according to a “Compensation Rate” formula for shifts Anani worked voluntarily, increased his total compensation in each relevant year to over $100,000. Second Circuit upheld district court’s determination that Anani was exempt from the FLSA’s overtime pay requirement. In finding the requirements of 29 CFR §§541.600 and 541.602 satisfied as to the minimum guaranteed weekly amount paid “on a salary basis” the circuit noted it was undisputed that Anani’s base salary substantially exceeded $455 per week. Additionally, because Anani conceded earning over $100,000 annually, and no improper deductions were made, he fell within 29 CFR §541.601(b)’s “highly compensated employee” exemption to the FLSA’s overtime pay requirement.