Employment- Second Circuit Rules That Entry-Level Accountants At KPMG Are Exempt From FLSA Overtime Requirements

In Pippins v KPMG LLP, Docket No. 13-889-cv (2nd Cir. 2014), the plaintiffs had sued KPMG LLP (“KPMG”) for unpaid overtime wages under the Fair Labor Standards Act (“the FLSA”), 29 U.S.C. §§ 201‐219. The district court granted KPMG’s motion for summary judgment on the ground that plaintiffs, employed as entry‐level accountants doing auditing work, were learned professionals exempt from the FLSA’s overtime provisions under 29 U.S.C. § 213(a)(1).

In analyzing the case, the Second Circuit Court of Appeals (the “Court”) said that the record reveals that plaintiffs were employed in a field of science and learning, that they relied on knowledge customarily acquired by prolonged specialized instruction, and that their work involved consistent exercise of professional judgment, see 29 C.F.R. § 541.301. The Court concluded, therefore, that the plaintiffs were learned professionals. Accordingly, the Court affirmed the district court’s judgment.