US SUPREME COURT DENIES HEARING IN ALABAMA FLSA CLASS ACTION: JUDGMENT OF $35.6 MILLION STANDS

Posted on October 5, 2009 by Daniel Burnick

According to Roy Williams of the Birmingham News, the Supreme Court today let stand a $35.6 million judgment against Family Dollar for not paying overtime to more than 1,400 employees who routinely worked 60-70 hours a week.  The jury found that Family Dollar mis-classified the workers as exempt managers, rather then non-exempt hourly employees entitled to overtime, and awarded overtime pay over an 8 year period of time.

Practice Pointer.  Misclassification of employees, under the FLSA, resulting in claims for overtime, is one of the most common employment claims being filed by employees or ex-employees.  Employers must be sure that their employees are properly classified to avoid damages if the FLSA is violated, which include back pay, liquidated damages and attorneys fees.

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