Opinion ID: 1468675
Heading Depth: 3
Heading Rank: 6

Heading: The effect of post-August 23, 2004 deductions

Text: Plaintiffs argue that the district court erred in limiting recovery to the three pay periods in 2005, rather than granting overtime to all Plaintiffs for the entire post-August 23, 2004 claim period. Here, again, Plaintiffs' claims are flawed. To the extent that we are considering only the post-August 23, 2004 salary-basis test, when actual deductions were made, § 541.603(b) and its implementing regulations explain that the exemption is lost during the time period in which the improper deductions were made for employees in the same job classification working for the same managers responsible for the actual improper deductions. 29 C.F.R. § 541.603(b) (emphasis added). Therefore, the district court properly determined that only Plaintiffs who worked in the appropriate job classification during the relevant deduction period were entitled to overtime compensation under § 541.603 after August, 23, 2004.