Tag Archives: second circuit

Second Circuit Affirms: Business Not Obligated to Pay $350,000 “Performance” Bonus to Prospective Employee Who Never Worked A Day

Last year, a Manhattan federal district judge reviewed a decision of a federal bankruptcy court and held that Lehman Brothers was not required to pay a $350,000 performance bonus referenced in the offer letter of a prospective employee who never provided services. In doing so, the Court observed that the Firm terminated the contractual relationship … Continue Reading

Second Circuit Affirms “Supervision” Doctrine Vis a Vis FLSA Settlements

Bringing some degree of clarity to the murky question of whether parties can dismiss a pending FLSA lawsuit on their own volition, the Court of Appeals for the Second Circuit has ruled that any dismissal with prejudice requires “the approval of the district court or the DOL to take effect.” Cheeks v. Freeport Pancake House, … Continue Reading

Second Circuit Holds That Contract Attorney Properly Alleged Misclassification Claim

Reversing Judge Richard J. Sullivan’s 2014 decision, a panel of the Court of Appeals for the Second Circuit ruled today that a contract attorney who provided document review services on a multi-district litigation for a law firm through a third party staffing firm colorably alleged an FLSA violation based on his assertion that the document … Continue Reading

Brooklyn Federal Court Rejects Allegation That Not-For-Profit Board President Was An Employer

Many courts, including the Court of Appeals for the Second Circuit, have ruled that under certain circumstances an individual can be a statutory “employer” under the Fair Labor Standards Act, liable for minimum or overtime wages usually along with a corporate entity.  The scope of such potential liability and the precise formulation of the “economic … Continue Reading

Third Circuit Joins Second Circuit In Rejecting Vague Pleadings of FLSA Violations

The Court of Appeals for the Third Circuit has joined the Second Circuit’s recent opinions requiring plaintiffs in FLSA cases to provide more than generalized allegations regarding hours worked in order to satisfy the the Supreme Court’s Iqbal/Twombly standard (all arising in the medical setting).   Davis v. Abington Mem. Hosp., 2014 U.S. App. LEXIS 16472 … Continue Reading

Second Circuit Finds Audit Associates Are Exempt Professionals

Affirming a highly-publicized 2012 decision from Southern District of New York Judge Colleen McMahon, the Court of Appeals for the Second Circuit ruled last week that audit associates employed by “Big Four” accountancy KPMG qualified for the learned professional exemption from overtime under the FLSA.  Pippins v. Kpmg Llp, 2014 U.S. App. LEXIS 13997 (2d … Continue Reading

Chamber of Commerce’s Amicus Brief Argues For Economic Value of Internships to Businesses, Employees and Students

As the Court of Appeals for the Second Circuit prepares to hear argument and ultimately rule in the consolidated appeal involving former interns for Hearst Publishing and Fox Searchlight seeking minimum wage under the FLSA, the Court received amicus submissions from several organizations, including the U.S. Chamber of Commerce, the largest employer association. The Chamber’s … Continue Reading

Supreme Court Declines Catsimatidis’ Invitation To Review FLSA Liability

Though the high court recently has accepted other petitions for certiorari on FLSA issues, today the Court declined Gristede’s owner and former NYC mayoral candidate John Catsimatidis’ request that the Court take up his case and review the imposition of individual liability imposed by the Second Circuit.  Catsimatidis v. Irizarry, 2014 U.S. LEXIS 1802 (2014).  … Continue Reading

Supreme Court Accepts FLSA Certiorari Petition Regarding Pay for “Security Screening”

The Supreme Court agreed today to hear a case involving application of the Portal-to-Portal Act to employees who claim they should be compensated for time spent undergoing security screenings used to prevent employee theft.  Integrity Staffing Solutions, Inc. v. Busk, Case No. 13-433.   The employees allege they were required to undergo security screenings to prevent … Continue Reading

Second Circuit To Issue Important Guidance On Legal Standards Applicable To Unpaid Interns

Recognizing the need to provide clarity to the business community in light of voluminous litigation, the United States Court of Appeals for the Second Circuit recently agreed to hear appeals in the Fox and Hearst intern cases.  Glatt v. Fox Searchlight Pictures Inc., Case Number 13-2467, 11/26/13.  The Court will examine the different legal tests and … Continue Reading

Second Circuit Finds Gristede’s Owner to Be Individually Liable “Employer” Under FLSA

Reviewing a district court decision issued two years ago, the United States Court of Appeals for the Second Circuit has affirmed a ruling finding John Catsimatidis, the CEO and owner of New York-area grocery chain Gristede’s (and a New York Mayoral Candidate), individually liable for wages under the FLSA based on the “economic realities” of … Continue Reading

District Court Holds As A Matter of Law That Home Attendants Are Not Jointly Employed By New York City

Allegations of joint employment under the FLSA and other employment laws typically flow from control allegedly exercised by the purported “joint employer” over the primary employer and/or its employees. In a recent opinion rejecting such allegations, Magistrate Judge Joan Azrack of the United States District Court for the Eastern District of New York granted summary judgment … Continue Reading

Second Circuit Affirms Dismissal of Bloggers’ Compensation Suit

Following appeal of a New York trial court decision issued last spring, the Second Circuit has rejected three Huffington Post (the “Post”) bloggers’ claims to recover $105 million allegedly owed to them and the Post’s other bloggers under theories of unjust enrichment and deceptive business practices. Tasini, et al. v. AOL, Inc., et al., 2d Cir., … Continue Reading

Second Circuit Asks New York Highest Court for Clarity As To Who May Participate In a Tip Pool

Under New York law, a customarily tipped employee cannot be forced to share tips with an employer or its “agent”. In 2009, a New York federal judge ruled that Starbucks did not violate the New York Labor law (specifically Section 196-d) by permitting shift supervisors at New York Starbucks to receive tips from the coffee … Continue Reading

Second Circuit Affirms Applicability of Executive Exemption to Warehouse Captains

Last year, in a decision discussed here, District Court Judge Richard Berman of the Southern District of New York determined that warehouse captains for defendant Baldor Specialty Foods qualified for the executive exemption under both federal and New York state law, because their duties were “clearly managerial.” Ramos v. Baldor Specialty Foods, Inc., 2011 U.S. Dist. … Continue Reading

New USDOL Fact Sheet Discusses FLSA Retaliation

Reflecting the Supreme Court’s 2011 decision regarding the scope of protected activity under the FLSA, the U.S. Department of Labor has issued Fact Sheet 77A, summarizing the Department’s view of the FLSA’s anti-retaliation provision.    Simultaneously, the Department also issued fact sheets addressing retaliation under the FMLA and the Migrant and Seasonal Agricultural Worker Protection Act. … Continue Reading

Red Cross Director Exercised Discretion and Judgment, Qualified for Administrative Exemption

Quantifying the necessary “discretion and independent judgment” required to qualify for the administrative exemption continues to divide courts, and the conclusion is often in the eye of the judicial beholder. This is especially so where discretionary authority must be measured without reference to monetary benchmarks or limits, such as those applicable to insurance adjusters or purchasing … Continue Reading

Another Petition for Certiorari to US Supreme Court Filed Seeking Clarity As to FLSA Status of PSR’s

As often discussed in this space and elsewhere, Courts continue to widely differ in their analysis as to whether the administrative and/or outside sales exemptions are applicable to pharmaceutical sales representatives. Now, the Supreme Court will have another opportunity to weigh in on the applicability of the outside sales exemption to such employees, as the plaintiffs … Continue Reading

Supreme Court Declines to Review Drug Reps Classification Issue

Despite the Circuit split created by this month’s decision from the Ninth Circuit, holding that pharmaceutical sales representatives are outside sales employees within the meaning of the FLSA, the Supreme Court has declined to take up Novartis’ appeal of the adverse ruling it received on this issue from the Second Circuit.  The Supreme Court’s ruling … Continue Reading
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