The Fourth Circuit has published opinions in three labor and employment cases in recent weeks.  The first case, Sepulveda v. Allen Family Foods, Inc., concerned a Fair Labor Standards Act (FLSA) collective action that was brought on behalf of a class of current and former employees of a chicken processing plant.  The employees claimed, among other things, that the company had violated the FLSA by not compensating them for time spent donning and doffing their protective gear before and after their shifts.  There is a specific exception in FLSA for cases regarding compensable time for “changing clothes” when the employees are represented by a union that has negotiated a collective bargaining unit.  The Court held that putting on and taking off protecting gear was “changing clothes,” so the exception applied because these plaintiffs had a union, and so judgment was rightly granted to the employer.

Read more…

Categories: Judicial Decisions Tags: Case Commentary, Collective Action, Concerted Activity, FLSA, Fourth Circuit, Labor and Employment, NLRB, Retaliation, Sarbanes-Oxley Act, Union, Wage and Hour

A recent Wall Street Journal article highlights the trend of more retaliation cases being filed with the EEOC, and likely the courts.  In addition to retaliation claims that are filed with the EEOC (i.e. retaliation related to race, sex, disability, etc. discrimination), many other federal laws have anti-retaliation provisins (such as the Fair Labor Standards Act), as do several North Carolina laws (most importantly, the Retaliatory Employment Discrimination Act).  As shown in the graphs in the article, more discrimination claims overall are also being filed in these times of greater layoffs.

Categories: General News Tags: EEOC, Fair Labor Standards Act, FLSA, Labor and Employment, REDA, Retaliation, Retaliatory Employment Discrimination Act

In Boucher v. Shaw, the Ninth Circuit Court of Appeals ruled that individual managers/owners — in this case a hotel’s CEO, CFO, and labor/employment manager — may be held liable for unpaid wages, vacation, and holiday pay under the Fair Labor Standards Act (FLSA).  The FLSA allows suits to be brought against individuals, in addition to the employer-company itself, in certain cases.  Specifically, individuals can be on the hook if they “exercise control over the nature and structure of the employment relationship,” such as the managers here.   Significantly, the court also held that even though the company had gone into bankruptcy, the claims against the individual managers could proceed all the same.  The bankruptcy affects claims against the company, but not claims against the individual managers.  This is an important principle for workers who are cheated out of wages by failing companies.

Categories: Judicial Decisions Tags: Bankruptcy, Case Commentary, Fair Labor Standards Act, FLSA, Labor and Employment, Lost Wages, Manager Liability, Ninth Circuit

In Desmond v. PNGI Charles Town Gaming, the Fourth Circuit reversed the trial court, concluding instead that the plaintiff was not exempt from being paid overtime as an administrative employee.  Under the Fair Labor Standards Act (FLSA), one of the “white collar” exceptions to the overtime requirement is the administrative exception.  An administrative position is “office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers” that involves a significant amount of independant discretion.

In this case, the plaintiff was a racing official for a casino and live horse racing facility.  The trial court had found the plaintiff to be an administrative employee because his position was indispensable to the business.  The Fourth Circuit found otherwise, as the plaintiff’s position did not involve the company’s general business operations, but rather was similar to positions on a manufacturing production line or selling a product in a retail or service establishment.  Therefore, he was entitled to overtime.

Categories: Judicial Decisions Tags: Case Commentary, FLSA, Fourth Circuit, Labor and Employment, Overtime, Wage and Hour, White Collar Exceptions