Ninth Circuit: Anthony Sanders, et al. v. County of Ventura

Where, under a voluntary flexible-benefits reimbursement scheme, an employer retains as healthcare-related administrative fees some portion of the funds disbursed to an employee who has opted out of the employer's health insurance scheme, although the deduction is listed as a deduction from earnings, it is not part of the base salary used to calculate overtime wages under the statute, because the statute specifically exempts funds paid to a third party for an employee-related health scheme.

As a rulemaking that purported to set a hard ceiling for the amount of the employer's reservation contradicted an earlier holding, made no textual changes to the rule, and was based on determinations considered in the earlier case, the earlier holding controls.

Anthony Sanders, et al. v. County of Ventura