An Alabama federal judge granted AutoZone’s request to dismiss nearly 500 current and former store managers from a nationwide collective action that the national auto-parts chain had misclassified them as exempt under the Fair Labor Standards Act
and denied them overtime, holding those plaintiffs had missed the three-year statute of limitations and that plaintiffs had failed to establish equitable tolling should apply to save their claims.
Continue Reading The Doctrine of Equitable Tolling Won’t Save Hundreds of Store Managers from Dismissal in AutoZone’s Nationwide Overtime Suit

A federal district court in Florida recently declined to conditionally certify a nationwide collective action brought under the Fair Labor Standards Act because the plaintiff did not show sufficient evidence that she was similarly situated to other restaurant managers who wanted to join.
Continue Reading Federal Court Denies Conditional Certification of Collective Action Involving Restaurant Managers

On May 19, 2020, the US Department of Labor issued its final rule likely expanding the FLSA’s Section 7(i) overtime exemption for commission-based workers in retail and service industries by withdrawing the long-standing, historical list of businesses that the DOL identified as falling within or outside of what it deemed to be a retail or service establishment.
Continue Reading The DOL’s New Rule Removes Presumption Against Overtime Exemption for Possible Retail and Service Establishments, Broadening Availability to Employers

In a case of first impression, the Third Circuit rejected the view of the United States Department of Labor, ruling that incentive payments from third parties are not necessarily included in the calculation of an employee’s overtime rate. 
Continue Reading Third Circuit: Certain Third Party Bonuses Excluded from FLSA Overtime Rate Calculation

Massachusetts’ highest court, The Supreme Judicial Court, recently issued its long awaited decision in Sullivan v. Sleepy’s LLC, SJC-12542, in which the SJC responded to certified questions of first impression from the United States District Court for the District of Massachusetts. The case is particularly important for businesses which pay employees through commissions or draws (i.e., advances on commissions), particularly in the retail context where the ruling departs considerably from federal law.
Continue Reading Massachusetts Retail and Inside Salespersons Are Now Entitled to Overtime and Sunday Premium Pay

The Sixth Circuit recently affirmed a district court’s summary judgment decision finding that an employer properly had paid employees using the “fluctuating workweek” method and dismissing plaintiffs’ claims for underpayment of wages under the Fair Labor Standards Act. 
Continue Reading Sixth Circuit Affirms Employer’s Use of Fluctuating Workweek

On February 1, 2018, the United States District Court for the Eastern District of Pennsylvania dismissed an overtime class action suit brought on behalf of a group of former democratic campaign workers for their work during the 2016 presidential election.  In dismissing the overtime suit, the Court relied on an often-overlooked defense to the Fair Labor Standard Act.
Continue Reading Campaign Workers’ Overtime Suit Dismissed Based on Purely Local Activities

On November 22, a federal judge in the Eastern District of Texas preliminarily enjoined the Department of Labor’s final overtime rule, which would have expanded overtime eligibility to executive, administrative, and professional employees making less than $47,476 per year, who were previously exempt from the Fair Labor Standards Act’s requirements under its white collar exemption. The final rule was scheduled to go into effect on December 1, 2016.
Continue Reading DOL Overtime Rule Preliminarily Enjoined; No Employer Action Required By December 1st