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Exempt or owed overtime pay? — FLSA case reinforces importance of employee classification


SKU: ELBmj121. Category: .


Abstract: This article discusses a case in which the plaintiffs, all former sales managers, sued in federal court claiming that they’d been misclassified as exempt "administrative" employees and were entitled to unpaid overtime pay. There follows a description of the three-part test used to determine whether a particular employee is administratively exempt from the Fair Labor Standards Act (FLSA) requirements regarding pay. The article then explains why the court found against the plaintiffs. A sidebar reveals a different outcome in a similar case. Citation: Hines et al. v. State Room, Inc. et al., No. 10-2298, Nov. 28, 2011 (1st Cir.). In re Novartis Wage and Hour Litigation, No. 09-0437-cv, July 6, 2010 (2nd Cir.)

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