Courts addressing FLSA misclassification claims brought by employees classified as salaried exempt workers must determine damages. In a new decision from the United States District Court for the Eastern District of Louisiana, Judge Jane Triche Milazzo ruled that successful Plaintiffs in one such misclassification case are only entitled to “half-time” damages. Further, the Court
misclassification
USDOL Issues Administrative Interpretation Reflecting Administration’s View Of “Independent Contractor” Analysis Under FLSA
As previously promised, the Department of Labor today issued its eighth Administrator’s Interpretation (“AI”) since the 2010 implementation of this form of guidance. Today’s Interpretation, as expected, reflects the current Department’s position that the governing analysis is the economic realities test which, in the Department’s view, is used to determine “whether the worker…
Team Leaders at Processing Facility Properly Classified as Exempt
Division of supervisory duties among different classifications of exempt employees sometimes gives rise to claims that some or all of those managerial employees do not qualify for the executive exemption. Analyzing and rejecting one such challenge, an Arkansas federal court recently concluded that “Team Leaders” at one of the nation’s largest frozen food processing…
U.S. Open Tennis Umpires Properly Classified As Independent Contractors
Service providers vendors (and those vendors’ employees) are free to assert claims that they “employees” of the entity for which they are providing services under the FLSA under independent contractor misclassification and joint employer theories. Service providers continue to do so despite limited success, the most recent example being Judge Andrew Carter’s (SDNY) summary…
Virginia Governor Signs Executive Order Establishing Joint Task Force on Worker Misclassification and Payroll Fraud
Virginia employers may see more robust worker misclassification enforcement and enhanced cooperation between state agencies with respect to misclassification issues in the near future. Following the lead of the federal government and other states, Governor Terry McAuliffe’s recent Executive Order, signed on August 14, 2014, calls for the establishment of an interagency task force…
Second Circuit Rejects Plaintiff’s Tolling, Willfulness Arguments
Reviewing a district court’s dismissal of FLSA claims which were not timely filed within the FLSA’s two-year limitations period for non-willful violations, the Court of Appeals for the Second Circuit found no error in the lower court’s two findings that: 1) plaintiff failed to create a question of fact as to willfulness in order to…
Ohio Judge Finds Dispatchers to be Exempt Administrative Employees
Cases upholding the exempt status of dispatchers pursuant to the administrative exemption of the FLSA generally have focused on whether the position requires the performance of decision-making duties and analysis “beyond mere communication and tracking of vehicles.” A new decision builds on that analysis. Wade v. Werner Trucking Co., 2014 U.S. Dist. LEXIS 35653…
New York Legislature’s Second “Fair Play Act” Enacted to Cover Commercial Goods Transportation Industry
On the heels of similar legislation passed in 2010 for the construction industry, and consistent with the state’s continuing focus on alleged misclassification of service providers as independent contractors, the New York state legislature recently passed the Transportation Industry Fair Play Act, N.Y. Labor Law § 862 et seq. This legislation creates a…
Fifth Circuit Reiterates Appropriate Calculation of Damages For Employees Misclassified as Exempt
In a decision issued on August 16, 2013, the Court of Appeals for the Fifth Circuit, building on its now-venerable ruling in Blackmon v. Brookshire Grocery Co., 835 F.2d 1135 (5th Cir. 1988), reversed a trial court ruling that refused to apply the “half time” measure of damages in an FLSA misclassification case. Ransom …
Fifth Circuit Upholds Outside Sales Classification
The FLSA’s “outside sales” exemption from minimum wage and overtime is among the more straightforward exemptions, in that it contains only two requirements: that the employee be “customarily and regularly” away from the employer’s place of business; and that the employee primarily be engaged in making sales. This simple-sounding test does not preclude disputes regarding its…