SCOTUS Cert Recap: Spending Clause Statute Enforcement, Overtime Pay Exemptions, and the Bankruptcy Fraud Exception
Highlights
On May 2, the Supreme Court agreed to consider the following three questions:
Can legislation passed under the Spending Clause confer rights that are privately enforceable via Section 1983?
Does 29 C.F.R. § 541.601 — a regulation defining “highly compensated employees” —operate as a stand-alone basis for exempting daily-rate employees from federal law’s overtime pay requirements, or does the exemption apply only when such an employee’s pay also complies with the separate rules in 29 C.F.R. § 541.604?
Does the Bankruptcy Code bar discharge of a liability for fraud committed by a debtor’s agent or business partner even when the debtor has no knowledge of the fraud?
On May 2, the U.S. Supreme Court added three more cases to its docket for next term. The first raises the question whether Spending Clause legislation may ever confer a privately enforceable “right” under Section 1983. The second concerns when an employee is “highly compensated” and thus not subject to federal overtime pay rules. And the third addresses whether the U.S. Bankruptcy Code’s bar on discharging liabilities incurred from fraud applies when the debtor has no knowledge of the fraud.
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