Wage & Hour Litigation Blog

Category Archives: Misclassification/Exemptions

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ContractorGate: Court Awards Employer Over $550,000 In Attorney’s Fees And Costs Based On DOL’s Unreasonable Litigation Position

Posted in DOL Enforcement, Independent Contractors, Misclassification/Exemptions

Co-authored by Julie G. Yap and Rachel M. Hoffer

This week, the United States District Court for the Southern District of Texas ordered the Department of Labor to fork over $565,527.61 in attorneys’ fees and costs to a Texas employer.  Why such a hefty fee award?  The DOL’s position that the employer misclassified gate attendants as independent contractors was not … Continue Reading

President Directs Secretary of Labor to Begin the Regulatory Process

Posted in DOL Enforcement, Misclassification/Exemptions, Salary Basis

Authored by Alex Passantino

As we expected when we reported on this yesterday, President Obama today signed a Presidential memorandum directing the Secretary of Labor to “restore the common sense principles” related to overtime.  In his remarks, President Obama focused on his belief that overtime protections have “eroded,” that “if you work more, you should be paid more,” and that … Continue Reading

Exempt No More? DOL to Propose Sweeping Changes to White Collar Exemptions

Posted in DOL Enforcement, Misclassification/Exemptions, Salary Basis

Authored by Alex Passantino

Today, the New York Times reported that the Obama Administration intends to propose comprehensive changes to the Fair Labor Standards Act’s most significant exemptions — the exemptions for executive, administrative, and professional employees.  

Although the details are still fuzzy, it appears — as we suggested last week — that the Administration will seek to raise the … Continue Reading

California Supreme Court Oral Argument in Duran v. U.S. Bank — Apparently (Sample) Size Matters:

Posted in Misclassification/Exemptions

Authored by Jim Harris

The California Supreme Court heard oral argument yesterday in Duran v. U.S. Bank, a case that gives the Justices the opportunity to answer broad questions about whether statistical evidence and or a sampling of testimony may ever be used to establish class liability in a misclassification/overtime case. (See here for our prior posting on the Continue Reading

University Goes To School On Internship Database

Posted in DOL Enforcement, Misclassification/Exemptions

Authored by Adam Smiley

This blog has often reported on the rise of unpaid internship lawsuits.  (See here and here.)  These suits have been driven by an aggressive plaintiffs’ bar that smelled opportunity based on a number of convenient facts:  many employers have an internship program, formal or informal; many interns are unpaid, or if paid work enough hours … Continue Reading

Virginia’s “Rocket Docket” Delivers Heavy Payload of Victories to Prospect Mortgage in Misclassification Dispute with Loan Officers

Posted in Misclassification/Exemptions

Authored by Barry Miller

A recent onslaught of victories for Prospect Mortgage, LLC in Virginia provides valuable insight into the application of the FLSA’s outside sales exemption to workers who also perform significant portions of their jobs inside the office.  The company obtained a defense verdict in what appears to be the first trial in the nation on these issues.  … Continue Reading

Run[a]way Recovery: Unpaid Modeling Agency Interns Set to Cash In

Posted in Misclassification/Exemptions, Settlement

Authored by Adam J. Smiley

A New York federal judge gave an initial thumbs-up last Thursday to what is believed to be the largest unpaid internship settlement on the books: $450,000.

Elite Model Management was sued by a former unpaid intern in February 2013 (See Complaint), claiming that Elite deliberately misclassified interns as non-employees who were not protected by … Continue Reading

Great Expectations: Salesman’s Incompetent Performance Does Not Defeat Exempt Status

Posted in Defenses, Misclassification/Exemptions

Authored by Barry Miller

How do you classify the outside salesperson who fails to sell?  The administrative employee who can’t or won’t exercise discretion and independent judgment?  The manager who would rather perform manual labor than manage others?  Plaintiffs often stress – and Department of Labor regulations state – that a job description alone doesn’t dictate exempt status; rather, it’s … Continue Reading

New York Teams Up With Feds To Go After Worker Misclassification

Posted in DOL Enforcement, Misclassification/Exemptions, State Laws/Claims

Authored by Carlos Lopez

Yesterday, New York became the latest state to partner with the U.S. Department of Labor to step up enforcement against employers suspected of misclassifying workers as independent contractors.  In a move designed to send a “clear message” to employers, officials from the U.S. DOL, the New York DOL, and the New York Attorney General’s Office signed … Continue Reading

No “Fluctuation” as New York Federal Courts Continue to Allow Half-Time Damages

Posted in Defenses, Misclassification/Exemptions, State Laws/Claims

Co-authored by Robert S. Whitman, Howard M. Wexler and Joshua D. Seidman

Continuing the recent string of good news for employers on the fluctuating workweek (“FWW”) front, last week a federal judge in the Southern District of New York held that RadioShack’s use of the FWW or “half-time” method to calculate overtime pay for managers was permissible under New … Continue Reading