Gambling With The Fair Labor Standards Act: A Multi-Million Dollar Wager

  1. By: James G. Seaman, Esq.

    Pizza Hut, $10 million; Starbucks, $18 million; Bank of America, $22 million; Rite Aid, $25 million; Farmers Insurance, a whopping $90 million.

    Verdicts like these are causing healthcare providers to take a close look at a Depression-era federal law, the Fair Labor Standards Act (FLSA). It takes only one FLSA complaint by one employee to trigger an investigation and costly litigation.

    FLSA requires overtime pay for all workers who work in excess of 40 hours per week. The law provides various exemptions based on the duties and responsibilities of the position and how the employee is compensated. Confusion over who is exempt results in misclassifications and expensive lawsuits.

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