keeping up with wage and hour law - seyfarth shaw

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Keeping up With Wage and Hour Law: How Recent Developments May Impact Your Organization March 24, 2015 Richard L. Alfred 617-946-4802 [email protected] Noah A. Finkel 312-460-5913 [email protected] Kyle Petersen 312-460-5950 [email protected] Arthur J. Rooney 312-460-5530 [email protected]

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Page 1: Keeping up With Wage and Hour Law - Seyfarth Shaw

Keeping up With Wageand Hour Law:How Recent Developments

May Impact Your

Organization

March 24, 2015

Richard L. [email protected]

Noah A. [email protected]

Kyle [email protected]

Arthur J. [email protected]

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Keeping upwith Wage andHour LawHow Recent Developments May Impact YourOrganization

Richard AlfredNoah FinkelArthur RooneyKyle Petersen

©2015 Seyfarth Shaw LLP

Keeping up with Wage and Hour Law

INTRODUCTION

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Wage & Hour Federal Court Lawsuits*

* Fiscal year ending September 30th per the Annual Report of theDirector, Administrative Office of the United States Courts

1,457 1,545 1,580 1,558 1,633 1,5621,717

1,935 1,960

3,904

2,751

3,617

4,0394,207

7,310

5,393

6,073

6,825

6,336

8,125

7,500

8160

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

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Reasons for Explosion of Wage & HourLawsuits

1. FLSA (and state wage and hour laws) incorporate manyambiguities and leave unanswered the definitions of manyterms.

2. FLSA – old law enacted in 1938; last major revision of the lawimpacting the work day was the Portal-to-Portal Act of 1947.

3. Increase in public/employee awareness of wage and hour laws

4. Certification procedures under FLSA with lenient standard for“conditional certification” by court to facilitate notices tomembers of a putative collective.

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The Scenario

Eddie Haskell v. WooHoo, Inc.

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The Scenario: In the beginning . . .

• WooHoo, Inc. is a fast-growing Chicago-based startup that develops andsells smart phones nationally. Since its founding in 2008, the company hasgrown to 6 locations across the country. The company has a reputation forhelping young and entrepreneurial employees make a name and career forthemselves.

• With its phones flying off the shelves, WooHoo launched a media divisionto develop content, such as apps and online news, and entertainment.Until the media division became profitable, it had a limited labor budget.As a result, the division decided to utilize unpaid interns.

• Thanks to WooHoo’s popularity, it was flooded with recent collegegraduates offering to work as unpaid interns. One such eager beaver wasEddie Haskell, who recently graduated with a computer science degree.Haskell and dozens of other unpaid interns joined the division.

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WooHoo House Rules

• Haskell and all of the other interns were required to sign arbitrationagreements, just as the company’s employees do. The arbitrationagreement provides that:

“Any dispute or claim arising out of or relating to Employee’s employment,termination of employment or any provision of this Agreement shall be submittedto arbitration pursuant to the commercial arbitration rules of the AmericanArbitration Association . . . This Agreement shall be governed by the FederalArbitration Act. The parties agree that neither punitive damages nor attorneys’fees may be awarded in an arbitration proceeding required by this Agreement.”

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WooHoo House Rules, continued

• In order to safeguard its trade secrets and maintain its competitive advantage,WooHoo prohibits employees from bringing any personal electronic devices thatcould photograph, record, or download files with them to work.

• As with all of WooHoo’s workers, Haskell also was required to go through anextensive security screening each time he entered or exited WooHoo’s offices toensure he wasn’t taking any of WooHoo’s trade secrets with him. On a typical day,the security screening process took Haskell and his co-workers about 10 minuteseach time to get through the screening, for a total of 20 minutes spent in securityeach day.

• Non-exempt employees at WooHoo were entitled to 2 15-minute paid breaks and a30-minute unpaid meal period each day.

• To help non-exempt employees save on time, WooHoo implemented a timekeepingsystem that automatically populated with their weekly schedule and deducted theunpaid meal period. That way, they did not have to bother clocking in and out.

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So far, so good . . .

• During his first few months at WooHoo, it was all hands on deck andHaskell jumped right in to help in any way he could. When he wasn’tanswering the phones, making coffee runs and running errands for the bigwigs, Haskell got to test new applications that were in development.

• The company eventually offered Haskell and, over time, hundreds of othercomputer science interns full-time jobs as Quality Assurance Analysts.

• As a Quality Assurance Analyst, Haskell was responsible for testing newWooHoo applications from an end-user standpoint to identify bugs,limitations, or other problems with the programs. Haskell then worked withthe developers to make any necessary corrections.

• WooHoo classified the job as exempt, paid Haskell and other QualityAssurance Analysts an annual salary of $41,600 ($800/week), andrequired that they all sign new arbitration agreements, although the termsremained the same.

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Paying dues

• By then, the senior leadership had come to expect that Haskell (and others like him)would get them coffee and run other errands for them. So, even after starting hisnew job, he continued to stop at the coffee shop on his way to work each day to getcoffee for the management team and ran errands for them over his lunch break andon his way to or from work.

• The managers would email him their coffee orders each morning and would shootemails throughout the day and night with other errands for him, and, once in awhile,to ask questions about his work on testing new applications.

• Although Haskell and everyone else at WooHoo were burning the midnight oil, thecompany had a fully stocked kitchen and lounge so employees could grabsomething to eat at their desk or could have working lunches and dinners in thelounge.

• Because budgets were still tight and the company was spending a lot of money ondevelopment, overtime was not authorized. As a result, the non-exempt staff wasunder pressure to get their work done without recording more than 40 hours of timeeach week. To do that, they were often encouraged by management to get lunchonsite and work through the meal period, often leaving them with only 15 minutes ofuninterrupted time to eat their meal.

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The Plot Thickens . . .

• One November, Haskell went home for Thanksgiving and talked tohis Uncle Wally, who is an attorney at Wage Theft Law LLC.

• Haskell proudly told Uncle Wally about how all his hard work duringhis unpaid internship paid off and how he was now gainfullyemployed with WooHoo. Sure, the hours were long and the workwas not always glamorous (he didn’t get his college degree to fetchcoffee, right?), but he got to learn the business and havingWooHoo on his resume would open so many doors that it wasworth it.

• By the time the pumpkin pie was sliced, Uncle Wally had givenEddie a crash course on wage and hour law. Uncle Wally alsoasked his nephew to send him copies of his arbitration agreements.

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The Other Shoe Drops . . .

• Just a few weeks later, Haskell sued WooHoo in federal court claiming that thecompany had failed to pay him minimum wage and overtime pay for his time as anunpaid intern and that the company had misclassified him as exempt in his new job.

• Haskell filed the case as a collective and class action under federal and state laws,seeking to represent all unpaid interns and Quality Assurance Analysts. Each of thetwo putative classes includes hundreds of individuals.

• Haskell claims that his “work time” included time spent reading and responding toemails and fetching coffee before work, running errands on his lunch break and onhis way home from work, going through security each day, and responding to e-mails at night.

• As luck would have it, Haskell had kept a daily diary tracking all of the hours that hebelieved he worked, including the time he spent in security and running errands andfetching coffee. WooHoo added up all the hours, and determined that, if Haskellwere correct about his classification and hours worked, including overtime, his wageclaims could be worth $125,000.

• If all the other interns and Quality Assurance Analysts worked as long as he did, itcould mean eight figures of potential back wages and liquidated damages, not tomention attorneys’ fees and litigation costs (both his and theirs).

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What went wrong and what shouldWooHoo do now?

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What went wrong and what shouldWooHoo do now?

The Issues• Are interns employees who need to be paid?

• How “professional” does an employee need to be in order to beproperly classified as exempt?

• How are the DOL’s upcoming revisions to the exempt statusregulations likely to affect employee classifications?

• What pre-shift and post-shift activities are compensable followingrecent Supreme Court rulings?

• Should employers try to avoid class and collective actions witharbitration programs involving class and collective action waivers?

• Does mooting a case remain a viable litigation strategy after recentcourt decisions?

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Unpaid Interns:Trainees or Employees?

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Unpaid Interns: Trainees or Employees?

• The use of unpaid internships has increased in recent years forseveral reasons

Young professionals seek to build their resumes in an extremelycompetitive job market, and

Employers look for creative ways to grow their businesses whilekeeping labor costs low

• Win-win for employers and unemployed professionals, right? Notnecessarily.

• Unpaid internships can leave employers open to claims for allegedback pay and other damages under state and federal laws such asthe FLSA.

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Unpaid Interns: Trainees or Employees?

• Simply because a worker is willing to work for free is not, by itself,enough to avoid violations of the FLSA and similar state laws

• For-profit employers can engage unpaid interns so long as theyqualify as “trainees”

“Trainees” are not covered by the FLSA’s minimum wage and overtimeprovisions

• Different tests to determine whether an internship is training andnot employment under the FLSA

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Unpaid Interns: Trainees or Employees?

• In 2010, the DOL issued a “Fact Sheet” with criteria fordetermining whether an internship may be unpaid

The test looks at the educational, beneficial, and financial aspects of therelationship

DOL’s test is stringent

Unclear whether courts will defer to DOL

Some courts have adopted the DOL’s test

• Other courts have applied a less stringent “primary beneficiary”test

Who benefits more?

Criticized as too subjective and unpredictable

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Unpaid Interns: Trainees or Employees?

• With the increase in internship programs, the plaintiffs’ bar is filingclass and collective actions on behalf of interns

• The potential damages can be significant

minimum wage

overtime

liquidated or multiple damages

statutory penalties

attorneys’ fees and costs

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Unpaid Interns Strike Back

• In December 2012, interns on “The Charlie Rose Show” settled aputative class action for $250,000

The settlement is believed to be the first of its kind

• In June 2013, a judge ruled that interns who worked on productionof the film “Black Swan” should have been classified as employees

The interns allegedly performed routine tasks, such as filing, takinglunch orders, and answering phones

The court adopted the DOL’s test

• In 2014, Conde Nast Publications settled for $5.8M and disbandedits internship program altogether

• Also more media attention

Even the prestigious White House internship program is under attack

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Unpaid Interns

• What does this mean for Haskell and other interns like him?

• So what should employers like WooHoo do?

Proactively evaluate their internship programs to ensure compliancewith the FLSA and applicable state laws

• The internship should be similar to training that would be given in aneducational environment, and should benefit the intern.

• The intern should not displace regular employees, and should workunder close supervision of existing staff.

• The employer should derive no immediate advantage from theactivities of the intern, and on occasion the operations may actuallybe impeded.

Worst case, pay minimum wage to avoid liability where internshipprogram may be questionable.

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How “professional”must an exempt employee be?

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The Professional Exemptions

• Each has its own duties test• Learned Professional

• Creative Professional

• Teacher

• Computer Employee

• Plus, salary level and salary basis (or fee basis)• except for doctors, lawyers, teachers, and some computer

professionals

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The Professional Exemption

Learned Professional

• Primary duty must be the performance of workrequiring advanced knowledge, defined as workwhich is predominantly intellectual in character andwhich includes work requiring the consistent exerciseof discretion and judgment

• The advanced knowledge must:Be in a “field of science or learning” and

Must be customarily acquired by a prolonged course ofspecialized intellectual instruction

• (But: Combination of intellectual instruction and workexperience can substitute)

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How Professional is Professional?

True or False?

“An accountant or analyst with a 4-year degree inaccounting or finance is necessarily exempt.”

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How Professional is Professional?

• Finance and Accounting gray area• Generally non-exempt if:

• Less than 4-year degree

• Degree not in finance or accounting

• Generally exempt if:• CPA

• MBA in finance or accounting

• Depends more on discretion and judgment if:• 4-year accounting or finance degree

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New Professionals

• Pippins v. KPMG LLP (2nd Cir. 2014)• Junior auditors tried to trivialize their work and challenged their

exempt classification.

• Second Circuit disagreed – said they were exempt because theiradvanced knowledge was deeply rooted in the profession’s“application of appropriate professional skepticism” and chastisedplaintiffs for trivializing their job:

“Audit Associates, while early in their careers, are precisely the types ofprofessionals the regulations seek to exempt from FLSA – well-compensated professionals at a top national accountancy practice,performing core accounting tasks.”

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More Learned Professional Attacks

• Contract Attorneys• Lola v. Skadden Arps Meagher Slate & Flom LLP (S.D.N.Y. 2014)

• The district court found that contract attorney was exempt as alicensed attorney practicing law despite the argument that “mechanicaldocument review” was not the practice of law because he did not haveto use his legal knowledge, skill or training.

• Case is on appeal to 2nd Circuit.

• What might this mean for Haskell and WooHoo?

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The Computer Professional Exemption

“Our IT people are exempt because:• my computer had the ‘blue screen of death’ and they

somehow fixed it

• they know what TCP/IP, LAN, WAN, BIOS, SSL,CSS, and FTP actually mean

• they have really cool communications gadgets andget to try out all the ‘toys’ first

• I really have no idea what the IT team does, but Iknow it’s highly technical and important”

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Computer Employee Exemption

• Primary duty must consist of:• the application of systems analysis techniques and

procedures, including consulting with users, to determinehardware, software, or system functional specifications

• the design, development, documentation, analysis, creation,testing, or modification of computer systems or programs,including prototypes, based on and related to user or systemdesign specifications;

• the design, documentation, testing, creation, or modification ofcomputer programs related to machine operating systems; or

• any combination of the above duties, the performance of whichrequires the same level of skills

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Computer Employee Exemption

• Exemption applies potentially to computer systems analysts, computerprogrammers, software engineers, and other similarly skilled workers

• Work that requires highly-specialized knowledge of computers andsoftware, by itself, is not enough to satisfy the computer-employeeexemption

• Look for the following:

• employees who design, code, or test computer programs

• sophisticated, high-level computer programming skillsordinarily gained through a disciplined program of study (e.g.C++, Perl, Java)

• 4-yr computer-related degree (e.g. computer science,computer engineering, or information systems)

• This is because the exemption grows out of the professionalexemption

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Non-Exempt Computer Employees

• Examples of non-exempt work under the computeremployee exemption:

• help-desk and other support personnel who diagnose andresolve end-user computing issue

• system administrators and others who “keep things running”and perform routine maintenance on systems, includingservers, applications, and networks

• IT professionals who maintain user accounts, grantpermissions, or perform backups

• IT professionals who install patches, update virus definitions,install and/or configure hardware or software, or “compile”software

• database administrators who are involved principally in amaintenance or support role, as opposed to design anddevelopment

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Exempt Computer Employee Duties

Examples of exempt work under the computeremployee exemption:

• IT professionals who design, code, or test software andapplications, including sophisticated databases and web-enabled applications

• IT professionals who define system, network, or applicationarchitecture

• IT professionals with 4-yr computer-related degrees that

consult with users to determine software/hardware requirements

create technical documentation

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The Interplay of Computer Employees andthe Administrative Exemption

Examples of exempt work (primarily underadministrative exemption, which can apply as well):

• IT professionals, such as system or network administrators, whodevelop overall IT strategy or make procurement decisionsregarding computer-related products

• employees responsible for the overall strategy, design, andcontent of a website(s)

• IT professionals whose primary duty is project management(e.g. allocating resources, leading project team, managingbudget, etc.)

“planning, scheduling, and coordinating activities required todevelop systems to solve complex business, scientific, orengineering problems”

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Minimizing Misclassification Damages

Determining Misclassification Damages• Most courts hold that the 0.5x multiplier applies.

• Ransom v. M. Patel Enterprises (5th Cir.) is most recent

• Best Practices:

Make clear that salary covers all hours worked

• Put language in offer letters, handbooks for all salaried/exemptemployees

• Obtain employee signature

• Do not tell employees that “this is a 40 hour a week job.”

• What does this mean for Haskell and other QAAs like him?

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White Collar Exemptions: 2015Expected Proposal for Regulatory

Revisions

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Presidential Memorandum

• Issued March 13, 2014

• Directs Secretary of Labor to modernize andstreamline the existing overtime regulations.

• Secretary of Labor is instructed to:• consider how the regulations could be revised to update existing

protections consistent with the intent of the FLSA;

• address the changing nature of the workplace; and

• simplify the regulations to make them easier for both workers andbusinesses to understand and apply

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Regulatory Process

• Stakeholder Meetings

• Advanced Notice of Proposed Rulemaking

• Notice of Proposed Rulemaking• DOL announced last week that it “hopes” to publish the proposal

“sometime this spring”

• But the DOL has already missed two previous target dates

• Comments by Regulated Community• Possibility of Congressional Activity

• Publication of Final Rule• Possibility of Legal Challenge under Administrative Procedures Act

• Final Rule Effective Date

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Potential Areas of Revision

Salary Level• Raising level from current $455 per week (established 2004)

• Options Mentioned in Media:

New York: $600 per week ($31,200) /$675 ($35,100) in 2016

California: $640 per week ($33,280)/$800 ($41,600) in 2016

EPI: $984 per week ($51,168) (Bernstein/Eisenbrey)

• What Happens to Highly-Compensated Employees?

Congressional proposal would go to $125,000, then index to inflation.

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Potential Areas of Revision

Primary Duty• “the principal, main, major or most important duty that the

employee performs.”

• Currently, time alone is not the sole test, and nothing requires thatexempt employees spend more than 50% of their time performingexempt work

• Proposal may establish California-style 50% (or other) limitation onnon-exempt work

What about concurrent supervision?

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Potential Areas of Revision

“Simplifying” Other Exemption Issues

• No specific proposals floated.

• Administrative exemption seems to be most likely target

Administrator Interpretation on Mortgage Bankers.

“Formulation of management policies”

Administrative/Production Dichotomy

• Outside sales could be targeted

Pharmaceutical sales representatives

• Learned/creative professionals and computer employees

• Not likely to be addressed: fluctuating workweek, section7(i) exemption

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Industries Likely to Be Most Impacted

• All employers that have exempt employees near therumored new salary thresholds

• Retail

• Hotels

• Restaurants

• Financial Services

• Insurance

• Healthcare

• Pharmaceuticals

• Industries Employing Part-Time Exempt Employees

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Rulemaking -- What to Do Now

• Engage with Trade Associations/Coalitions• Most action on rule will be taking place here for short term

• Think About Impact (Economic and Operational)• What does your operation look like under CA law?

• What are the unintended consequences of these proposedchanges?

• Coordinate Legal and Government Relations

• Coordinate with Seyfarth working group

• How could this affect Haskell’s claims andWooHoo’s defenses?

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What is “Work”

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Hours Worked – Introduction

• FLSA does not define “work”• Rather, dictates that cannot “employ” an employee “for a

workweek longer than forty hours” without paying overtime.

• Employer must “suffer or permit”

• That raises questions for WooHoo (and you):• Was Haskell performing “work” when he was running errands?

• Did Haskell’s work day start when he checked emails at home, pickedup coffee for his boss, or when he got to work and started computer?

• Does WooHoo have to pay Haskell and others who worked throughtheir lunch period?

• Did WooHoo know about the “work”?

• Should it have known?

• Did management observe the work?

• Did management have reason to believe it occurred?

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Evolution of “Work” and the “ContinuousWorkday”

What is Work?• Supreme Court first tried to define in 1944

• Physical or mental exertion controlled or required by the employer and pursuednecessarily and primarily for the benefit of the employer (Tennessee Coal)

• Engaged to wait or waiting to be engaged (Armour & Skidmore)

• Supreme Court expanded definition of work in 1946• Time spent by employees traveling from factory’s entrance to workstation was

compensable (Mt. Clemens Pottery)

• Congress responded with Portal-to-Portal Act in 1947• Commuting time not compensable

• Activities that are preliminary to and postliminary to principal activities are notcompensable

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Evolution of “Work” and the “ContinuousWorkday”

• Supreme Court interpreted Portal-to-Portal Act in 1956• Activities “integral and indispensable to” a principal activity are themselves

principal activities not excludable from work time under the Portal-to-Portal Act(Steiner)

• Continued expansion in 2005• Performance of integral and indispensable activities render subsequent

activities a compensable part of the continuous workday (Alvarez)

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Today’s Continuous Workday:Integrity Staffing Solutions, Inc. v. Busk

• Supreme Court clarified distinction between compensable “principalactivities” and non-compensable “preliminary and postliminaryactivities”

• The case involved employees who packaged products at Amazonwarehouses. After clocking out at the end of each shift, theemployees were required to line up and pass through anti-theftmetal detectors, a process that allegedly took 25 minutes per day.

• The plaintiffs argued that time spent on screenings wascompensable because the employer required it for the employer’sbenefit.

• In December 2014, the Supreme Court unanimously ruled that theFLSA does not require employers to pay employees for time spentpassing through post-shift security screening.

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Integrity Staffing Solutions, Inc. v. Busk

• Court narrowed the “integral and indispensable” test

• Not enough that an employer requires a particular activity

• Employees must prove that an activity is an “intrinsic element” of aprincipal activity

• SCOTUS concluded that passing through security was not a “principal activity” ofthe employees because they were employed to package products, not to gothrough security screenings. Employer “could have eliminated the screeningsaltogether without impairing the employees ability to complete their work.”

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Integrity Staffing Solutions v. Busk –Open Questions

• The decision will not be limited to security screenings• What about cashiers, bank tellers, and casino dealers who spend

20-30 minutes at the end of their shifts going through an anti-theftprotection process?

• The Justices raised but did not answer these types of questions at oralargument

• Can be difficult to apply these concepts to the modern workplace

• Can include various activities outside the work place such as use ofhome computers and smart phones and other “home work” to preparefor the next day

• Can include computer boot-up time and store opening/closing

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Intregity Staffing Solutions v. Busk:Impact on Haskell v. WooHoo

• What does the Court’s decision mean for Haskell’slawsuit and WooHoo?• Does checking and responding to emails for 15 minutes in the

morning before leaving home for work start the continuousworkday and make the commute compensable?

• What about picking up coffee on the way in?

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Hours Worked – Meal Periods & RestBreaks

Rest Breaks (Interpretive Regs §785.18)• FLSA does not require rest breaks; some states require them• Rest breaks are for benefit of employer so employees can be more

productive• Breaks normally between 5 – 20 mins are considered rest breaks,

must be compensated, and count as work time.

Meal Periods (Interpretive Regs §785.19)• FLSA also does not require employers provide meal breaks; many

state rerquire meal breaks• Bona fide meal breaks may be unpaid. Usually, breaks should be

at least 30 uninterrupted minutes to be bona fide.• But, “special circumstances” may allow shorter bona fide meal

breaks• Meal periods that are interrupted or too short to eat a meal may not

be bona fide and, if so, must be compensated.

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Hours Worked – Meal Periods

• Plaintiffs may argue that all breaks 20 minutes or less mustbe compensated as rest breaks.

• This argument is inconsistent with DOL’s Field OperationsHandbook, Opinion Letters, and court rulings – no bright line

• Better to have meal breaks of 30 – 60 minutes. But, ifshorter, make sure “short” meal period is:• Not interrupted frequently (employees should not eat at their desk or

work station)

• Enough time to eat a meal

• Consistent with applicable state laws

• Agreed by employee

• Some states (Wisconsin) must allow employees to leave premises

• 10-minute meal breaks have been found to be bona fide

• Was Haskell’s 30-minute meal break bona fide?53

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The Arbitration Solution

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The Arbitration Solution?

• Arbitration agreements and class / collective action waivers maybe an effective way for employers to protect themselves againstcollective and class wage-hour lawsuits (among other employmentclaims)

• Enforcement of waivers is not guaranteed

Courts and agencies fighting back

But Supreme Court has issued rulings that favor individual over classarbitration

• Potential pitfalls

Class arbitration, including AAA Supplemental Class Action Rules,possibly even for collective actions

Converting an opt-in collective action to an opt-out class action

But, risk of numerous individual arbitration claims

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The Arbitration Solution?

• Evolution of Supreme Court precedent

Class arbitration cannot be compelled when agreement is silent aboutclass arbitration and parties agreed that there was no agreement on thisquestion; class arbitration may not be compelled absent evidence thatthe parties agreed to it. Stolt – Nielsen S.A. v. Animalfeeds (2010), but,

Court held that an arbitrator’s decision to permit class arbitration waspermitted even though the parties’ agreement did not explicitly providefor such procedures. Oxford Health Plans LLC v. Sutter (2013)

• Distinguished Stolt-Nielsen because the parties “had entered into anunusual stipulation that they had never reached an agreement onclass arbitration”

• Court has not decided whether court or arbitrator decides if arbitrationclause allows for class arbitration. 3rd and 6th Circuits in 2013 heldclass arbitration so fundamentally changes the nature of anarbitration that parties must have intended that the court decideabsent agreement to the contrary

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The Arbitration Solution?

• Evolution of Supreme Court precedent

FAA preempts California law barring enforcement of class actionwaivers in consumer cases; state law or policy requiring availability ofclass arbitration interferes with the “fundamental attributes of arbitration”and is inconsistent with FAA. AT&T Mobility v. Concepcion (2011)

Class action waivers are enforceable under the FAA even if individualarbitration is economically unfeasible; effective vindication concerns donot arise due to high costs of proving a claim (as Justice Kagan said inher dissent, that’s “too darn bad”). American Express Co. v. ItalianColors Restaurant (2013)

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©2015 Seyfarth Shaw LLP

The Arbitration Solution?

• Lower courts are enforcing collective and class actions waivers inarbitration agreements

• Rejection of “substantive right” theory in Sutherland v. Ernst &Young (2d Cir. 2013) and Raniere v. Citigroup, Inc. (2d Cir. 2013)

Reversed district court’s holdings that collective action waiver wasunenforceable because it would prevent plaintiffs from vindicatingsubstantive statutory rights

• NLRB’s D.R. Horton/Murphy Oil doctrine has faced nearlyuniversal rejection

NLRB held Section 7 of the NLRA invalidates a class action waiver in aworkplace arbitration agreement because it barred employees fromengaging in “concerted activity” protected by the NLRA

Nearly all courts have rejected it, and AmEx v. Italian Colors suggestsSCOTUS would reject it

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The Arbitration Solution?

• Legal Issues Remaining:

Unconscionability

Other typical contract defenses

PAGA claims in California (federal or state court?)

D.R. Horton/Murphy Oil NLRB decisions not conclusively rejected -- yet

• Class Action Waivers

Clear and conspicuous

Explicitly prohibits arbitrators from presiding over class claims

Consider a severability provision

• How will this have an impact on Haskell’s claim given that hisagreement says:“Any dispute or claim arising out of or relating to Employee’s employment, termination of employment or anyprovision of this Agreement shall be submitted to arbitration pursuant to the commercial arbitration rules of theAmerican Arbitration Association . . . This Agreement shall be governed by the Federal Arbitration Act. The partiesagree that neither punitive damages nor attorneys’ fees may be awarded in an arbitration proceeding required bythis Agreement.”

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©2015 Seyfarth Shaw LLP

The Arbitration Solution?

• Pros of an arbitration agreement Avoid class / collective actions

Confidentiality

Potential to limit discovery

Faster on individual basis

Avoid jury trials / runaway jury verdicts

• Cons of an arbitration agreement Some uncertainty over ability to enforce (but recent case law lowers that

uncertainty)

“Who decides” issue for ambiguous clauses not completely resolved in all circuits

Possibility of class arbitration

Possibility of converting an opt-in collective action into an opt-out proceeding

Potential multiplicity of individual suits

Difficulty in obtaining dismissal by motion

Arbitrators may split the baby

Judicial review almost non-existent after Oxford Health Plans LLC v. Sutter(2013)

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Can’t we just moot it?

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©2015 Seyfarth Shaw LLP

Is the Mootness Doctrine Now Moot?

Can WooHoo Moot Haskell’s Putative Collective/Class Action?

• The problem for a defendant?

• Small damages

• Lots of potential claimants

• Lots of attorneys fees

• The possible solution?

• Tender full relief, under Rule 68 or otherwise

Is there even a benefit to Rule 68 for FLSA cases? State law claims?

• Why it might not work for a state law claim:

• Standing as a class representative

• Class cert may relate back to filing of motion

• FLSA is different, says SCOTUS in Genesis Healthcare v. Symczyk(2013)

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Is the Mootness Doctrine Now Moot?

Why it still might not work for an FLSA claim:• Other potential plaintiffs

• Judicial hostility

• Hard to quantify damages

• Unaccepted offer may not render claim moot

What should WooHoo Do?

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Questions?

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Seyfarth Shaw LLP 1

Richard L. Alfred

Boston Office

(617) 946-4802

[email protected]

Areas of Practice

Labor & Employment

Wage & Hour Litigation; Complex Discrimination Litigation; Wage & Hour Compliance Reviews and

Assessments; Workplace Counseling & Solutions

Experience

Richard Alfred is the Chair of Seyfarth Shaw LLP’s National Wage & Hour Litigation Practice Group and the

former Chair of the firm’s Boston office Labor & Employment Group (2002-2013). He also serves on the firm’s

Labor and Employment Department Leadership Team and is a member of Seyfarth Shaw’s Executive

Committee.

Mr. Alfred’s practice is focused on employment litigation, with a particular emphasis on the defense of wage

and hour collective and class actions, complex litigation, high-stakes discrimination and wrongful termination

cases and non-competition/non-solicitation matters. He has defended many collective and class actions on

behalf of large Fortune 500 companies brought under the Fair Labor Standards Act and state wage and hour

laws in jurisdictions throughout the United States. These cases often pose enormous risk to clients, and Mr.

Alfred has been successful through various litigation strategies in defusing and reducing that risk and the

potential exposure that such cases may present.

Mr. Alfred also has extensive experience defending employment discrimination single, multi-plaintiff, and

class actions brought under federal and state statutory laws; pattern or practice claims brought by the EEOC;

and employment-related breach of contract and tort claims. He regularly represents parties in non-

competition, non-solicitation, and other restrictive covenant claims and defends corporations against

allegations of competitor-related employee raiding claims. Mr. Alfred counsels businesses on a wide-

spectrum of workplace issues, including reductions in force, internal complaints and investigations, executive

employment agreements and traditional labor matters. Mr. Alfred began his career and spent many years

representing employers in labor relations matters such as union campaigns, unfair labor practice changes,

and collective bargaining.

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Seyfarth Shaw LLP 2

Mr. Alfred has represented clients in many different industries, including hospitality, financial and professional

services, specialized and temporary staffing, retail, pharmaceutical, airline, manufacturing, trucking, home

building, and technology.

Education

J.D., Harvard Law School (1978)

B.A., Harvard College, magna cum laude (1975)

L'Université de Strasbourg, Faculté des Lettres (1972-73)

Certified Lean Six Sigma Yellow Belt

Admissions

Illinois

Massachusetts

New York

Courts

Supreme Court of the United States

U.S. Courts of Appeals for the First, Second, Third and Fourth Circuits

U.S. Court of Appeals for the District of Columbia Circuit

U.S. District Court for the District of Connecticut

U.S. District Court for the District of Massachusetts

U.S. District Court for the Eastern, Southern and Western Districts of New York

Massachusetts Supreme Judicial Court

Supreme Court of Illinois

Affiliations

College of Labor and Employment Lawyers (Election as Fellow, 2000; Former Chair, First Circuit

Credentials Committee)

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American Bar Association (Labor & Employment Law Section, Employee Rights and Responsibilities

Committee, Management Co-Chair of Class Action and Complex Litigation Subcommittee)

American Employment Law Council (1998-present)

Hearing Officer, Board of Bar Overseers (1990-1996)

Massachusetts Bar Association (Labor Law & Employment Section Council, Past Chair)

Representative Wage & Hour Cases

Opalinski, et al. v. Robert Half International Inc., et al., 761 F.3d 326 (2014) (cert denied 3/9/15) (holding

that the availability of classwide arbitration is a substantive “question of arbitrability” to be decided by

a court absent clear agreement otherwise)

Kaiser Foundation Health Plan, et al. adv Feaver, et al., Case No. 3:15-cv-00890 (N.D. Cal. 2015)

(alleged collective and class action claiming that Outpatient Pharmacy Managers were not paid for off

the clock work and overtime)

Peapod, LLC, et al. adv. Franklyn, et al., Case No. 1:14-cv-1912 (S.D.N.Y. 2014) (putative class and

collective action alleging failure to pay service charges and overtime in violation of New York and

federal wage and hour laws)

Crawford, et al. v. Saks & Company, Case No. 4:14-cv-03665 (S.D. Tex. 2014) (alleged failure to pay

breaks of less than 20 minutes and overtime to former sales associate seeking certification of

nationwide collective)

Perez v. Wells Fargo, Case No. BC502538 (N.D. Cal.) (alleged failure to pay “short” meal breaks in

violation of FLSA and California Labor Code and seeking nationwide collective certification of current

and former non-exempt employees)

National Water Main Cleaning Co., et al. adv. George, et al., Case No. 1:10-CV-10289 (U.S. District

Court, D. Mass.) (class action under Massachusetts prevailing wage laws)

National Water Main Clean Cleaning Co., et al. adv. Villareal, Norfolk Sup. Ct. C.A. No. 12-00809

(defense of retaliation claim)

National Water Main Cleaning Co., et al. adv. Mulroy, D. NJ, Civil Action No. 2:12-cv-03669 (defense of

class action alleging violations of New Jersey prevailing wage laws)

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The George Washington University adv. Driscoll, Case No. 1:12-cv-00690 (U.S. District Court, D.D.C.)

(collective and class action alleging that certain positions were misclassified as exempt, not paid

overtime, and inadequately paid back overtime following reclassification)

Firth Rixson Limited, et al. adv. MacPherson, et al. Case No. 6:12-cv-06162-CJS (U.S. District Court,

W.D.N.Y.) (collective and class action alleging that manufacturer failed to pay employees nationwide

for all compensable time)

Endo Pharmaceuticals, Inc. adv. Quinn, et al. Case No. 10-11230-NG (U.S. District Court, D. Mass.)

(allegations that pharmaceutical sales representatives are not exempt as administrative or outside

sales employees)

Caritas Christi, et al., adv. Pruell, et al., 645 F. 3d 81 (1st Cir. 2011) and 678 F. 3d 10, (1st Cir. 2012)

(defense of hospital system against off-the-clock work claims asserted on behalf of more than 40

categories of non-exempt employees)

Boston Medical Center, et al. adv. Manning, et al., 725 F. 3d 34 (1st Cir. 2013) (defense of hospital

against off-the-clock work claims asserted on behalf of more than 40 categories of non-exempt

employees)

In Re: Staples, Inc. Wage and Hour Employment Practices Litigation, MDL No. 2025 (D. NJ)

Staples, Inc. adv. George, 08-CV-05746 (D. NJ) (defense of misclassification and overtime claims

involving assistant store managers)

Staples, Inc. adv. Price, 09-CV-01890 (D. NJ) (defense of misclassification and overtime claims involving

assistant store managers)

Staples, Inc. adv. Zelinsky, 09-CV-01889 (D. NJ) (defense of misclassification and overtime claims

involving assistant store managers)

Staples, Inc. adv. Morrison, 09-CV-01970 (D. NJ) (defense of misclassification and overtime claims

involving assistant store managers)

Staples, Inc. adv. Sharma, 09-CV-01891 (D. NJ) (defense of misclassification and overtime claims

involving assistant store managers)

Staples, Inc. adv. Ciotti, 09-CV-01919 (D. NJ) (defense of misclassification and overtime claims involving

assistant store managers)

Staples, Inc. adv. Soto, 09-CV-2482 (D. NJ) (defense of misclassification and overtime claims involving

assistant store managers)

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Staples, Inc. adv. Florio, 09-CV-01157 (D. NJ) (defense of misclassification and overtime claims involving

assistant store managers)

Staples, Inc. adv. Lentz, 09-CV-03983 (D. NJ) (defense of misclassification and overtime claims involving

assistant store managers)

Staples, Inc. adv. Plath, 09-CV-02898 (D. NJ) (defense of misclassification and overtime claims involving

assistant store managers)

Staples, Inc. adv. Ross, 09-CV-89 (D. MT) (defense of misclassification and overtime claims involving

assistant store managers)

Staples, Inc. adv. Stillman, et al., Case No. 07-CV-0849 (D. NJ) (defense of misclassification and

overtime claims involving assistant store managers) (pending in 3d. Cir., 09-03871 and 09-04072)

Staples, Inc. adv. Yacouby, Case No. MICV2008-01302 (Middlesex County Superior Court) (defense of

misclassification and overtime claims involving assistant store managers)

Rosnov v. Molloy, 460 Mass. 474 (2011) (holding that Massachusetts mandatory treble damages law

applicable to state wage and hour claims is not retroactive)

ZC Management LLC (Canyon Ranch) adv. Wood, et al., Civil Action No. 3:07-CV-30076 (D. Mass) (Rule

23 class action removed to federal court alleging violations of the Massachusetts “Tip Statute” and

Payment of Wages Law)

Fidelity Employer Services Corp. adv. Trezvant, et al., 434 F. Supp. 2d 40 (D. Mass. 2006) (minimizing

the size of the putative class in a misclassification case brought under the FLSA and state law against

a national financial services firm, which resulted in a very small number of opt-in plaintiffs, the

decertification of the class, and the dismissal of a pendant state law claim)

Robert Half Int’l adv. Opalinski, et al., Case No. 10-2069 (U.S. District Court, D.N.J.) (collective action

alleging misclassification of staffing managers)

Robert Half Int’l adv. O’Donnell, et al., 205 F.R.D. 77 (D. Mass. 2008) (“O’Donnell IV”) (defeating

certification of a Rule 23 class in a case alleging violations of the salary basis test for exempt status

where, because of the individualized inquiries required for each plaintiff in determining whether a

violation occurred, plaintiffs failed to demonstrate that common questions of fact or law predominated

or that a class action was the most efficient way to adjudicate claims)

Robert Half Int’l adv. O’Donnell, et al., 534 F. Supp. 2d 173 (D. Mass. 2008) (“O’Donnell III”) (defeating

class certification for the third time at initial stage of a federal lawsuit alleging that a professional

staffing agency had violated the salary basis test for its exempt employees)

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Robert Half Int’l adv. O’Donnell, et al., 429 F. Supp. 2d 246 (D. Mass. 2006) (“O’Donnell I”)(defeating

class certification at the initial stage of a federal lawsuit alleging that a professional staffing agency

had misclassified certain employees as exempt)

Robert Half Int’l adv. Presser, et al., Case No. 6:09-CV-02168-MSS-GJK (M.D. Fla.) (defense of

misclassification case)

Kelly Services, Inc., FedEX, Adecco USA, Inc. adv. Richard Tidd, et al. (D. Mass) (nationwide class action

brought by temporary delivery/pickup drivers in which Court allowed only limited conditionally certified

class and granted motion to dismiss overtime claims pursuant to the SAFETEA-LU amendments to

the Motor Carrier Act)

NVR, Inc. adv. Bartnikowski, et al., Case No. 07-CV-00768-JAB-PTS (M.D. NC) (defense of overtime pay

claims asserted on behalf of real estate Sales and Marketing Representatives under North Carolina

timely payment of wages statute).

NVR, Inc. adv. Gebhardt, et al., Case No. 07-4456 (D. NJ) (defense of overtime pay claims asserted on

behalf of real estate Sales and Marketing Representatives under the laws of 8 states, including New

Jersey)

NVR, Inc. adv. Geers, et al., Case No. A0706350 (Ct. Com. Pl. Hamilton County, Ohio) (defense of

overtime pay claims asserted on behalf of real estate Sales and Marketing Representatives under

Ohio law)

NVR, Inc. adv. Graves, et al., Case No. GD 07-15569 (Ct. Com. Pl. Allegheny County, PA) (defense of

overtime pay claims asserted on behalf of real estate Sales and Marketing Representatives under

Pennsylvania law)

NVR, Inc. adv. Hart, et al., Case No. 07-CV-02744-RWT (D. MD) (defense of overtime pay claims

asserted on behalf of real estate Sales and Marketing Representatives under Maryland law)

NVR, Inc. adv. Tracy et al., Case No. 04-06541 DGL(P) (W.D.N.Y.) (defense of overtime pay claims

asserted on behalf of real estate Sales and Marketing Representatives under federal and New York

law)

Walgreen Eastern Co. adv. Verdone, et al., Case No. 06-01613 (Norfolk County Superior Court) (defense

of claims brought on behalf of assistant managers for premium pay under the Massachusetts Blue

Laws for work performed on Sundays and statutory holidays)

Walgreen Eastern Co. adv. Robbins, et al., Case No. 07-01550 (Norfolk County Superior Court) (defense

of claims brought on behalf of hourly pharmacists for premium pay under the Massachusetts Blue

Laws for work performed on Sundays and statutory holidays)

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Hewitt Associates LLC adv. Cartner, et al., 09-CV-01293 (M.D. Fla.) (defense of off-the-clock claims

involving call center employees)

Hewitt Associates LLC adv. Herring, et al., Case No. 06-CV-267-GEB-TJB (D. N.J.) (defense of overtime

pay claims asserted on behalf of benefits analysts under federal law)

Hewitt Associates LLC adv. Seng, et al., Civil Action No. H-06-3262 (S.D. TX) (opposing a state-wide

collective action in which benefits, human resource, and payroll specialists have alleged that they

should have been classified as non-exempt)

Hewitt Associates, Inc. adv. Frye, et al., Docket No. BC388921 (Cal. Super. Ct., LA County) (defense of

overtime pay claims under California state law asserting that Benefits Analysts were misclassified as

exempt administrative employees)

Hewitt Associates, Inc. adv. Toth, et al., Docket No. SOM-L-609-08 (NJ Super. Ct., Somerset County)

(defense of overtime pay claims under New Jersey state law asserting that Benefits Analysts were

misclassified as exempt administrative employees)

Hewitt Associates, Inc. adv. Wesley, et al., Docket No. 08CH-14873 (Cir. Ct., Cook County, IL) (defense

of overtime pay claims under Illinois state law asserting that Benefits Analysts were misclassified as

exempt administrative employees)

Safety-Kleen Systems, Inc. adv. Johnson, et al., Case No. 06-81300-CIV (S.D. FL) (defense of trucking

firm in federal collective action claiming misclassification of employees following amendment of Motor

Carrier Act exemption)

Whirlpool Corporation and Maytag Corporation adv. Khait, et al., Case No. 1:06-CV-0368 (E.D. N.Y.)

(defense of home appliance manufacturer for national collective action and “off-the-clock” claims

involving service technicians and the Employee Commuting Flexibility Act)

AT&T Mobility LLC f/k/a Cingular Wireless LLC adv. Maragh, et al., Case No. 07-CV-30210 (D. Mass.)

(defense of wireless telecommunications company in nationwide FLSA overtime pay action)

Representative Other Cases

Circo v. Drew, 80 Mass. App. Ct. 1114, 956 N.E.2d 800 (2011) (appeal of dismissal of public policy

wrongful termination claim and defense jury verdict on interference with contract claim affirmed;

plaintiff’s petition for further appellate review to Supreme Judicial Court denied)

Astra USA, Inc. adv. EEOC, 94 F.3d 738 (1st Cir. 1996) (litigation over enforceability of charge waiver

clauses in settlement agreements in context of pattern or practice sexual harassment claims)

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New England Business Service, Inc. adv. Perry, 347 F.3d 343 (1st Cir. 2003) (defense of ERISA claim for

health benefits)

Massachusetts Health Research Institute, Inc. adv. Ward, 209 F.3d 29 (1st Cir. 2000) (defense of

disability discrimination case)

Astra USA, et al. adv. Dorn, et al., 975 F. Supp. 388 (D. Mass. 1997) (dismissal of multi-plaintiff sexual

harassment claims)

Board of Directors of Massachusetts Housing and Finance Agency adv. MacDonough, 28 Mass.App.Ct.

538 (1990)

Delta Air Lines, Inc. adv. Blais, (D. Mass. 01-11282-MEL) (summary judgment in sex and age

discrimination claims)

Lehman Bros. adv. Opus Investment Management, Inc., Worcester Superior Court (C.A. No. 03-1253A)

(defense of aiding and abetting breach of fiduciary duty in claimed “lift-out”)

MKS Instruments, Inc. adv. Solomon, (D. Conn. 3:03-CV-1615 CFD) (defense of breach of contract and

age discrimination claims brought by former executive)

The MITRE Corporation adv. Campbell, (D. Mass. 98-11768-RWZ) (defense of Equal Pay Act and sex

discrimination claims)

The MITRE Corporation adv. Guertin, Middlesex Superior Court (C.A. No. 97-01202-J) (defense of

disability discrimination claims by profoundly deaf physicist)

Astra USA, Inc. adv. Williams et al., 68 F. Supp. 2d 29 (D. Mass. 1999) (defense of claims alleging a

hostile work environment under Title VII of the Civil Rights Act of 1964 on behalf of a major

pharmaceutical company)

Publications

Co-Author, "Winter Storm Juno: Helping Employers Anticipate Wage & Hour and Workplace Safety

Concerns," Management Alert, Seyfarth Shaw LLP (January 26, 2015)

Co-Author, "Insights: Supreme Court Win for Employers," Chain Store Age (December 12, 2014)

Senior Editor, Wage & Hour Collective and Class Litigation, ALM Law Journal Press (2012). Definitive

treatise on wage and hour litigation.

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Co-author, “Supreme Court Rejects DOL’s Interpretation and Finds Pharmaceutical Sales

Representatives Qualify for the Outside Sales Exemption,” One Minute Memo, Seyfarth Shaw LLP

(June 18, 2012)

Co-author, "The Impact of Dukes on Wage and Hour Collective Actions," ABA Section of Labor &

Employment Law, Employment Rights and Responsibilities Committee, Midwinter Meeting (2012)

Co-author, “Defining the Workday in the Modern Economy,” GP Solo (July/August 2011)

Co-author, “Continuous Confusion: Defining the Workday in the Modern Economy,” ABA Journal of

Labor & Employment Law (v. 26 no. 3 Spring 2011)

Co-author, “Dukes v. Wal-Mart Stores Ruling: How This Win For Employers Impacts Wage & Hour Class

Actions,” Westlaw Journal Employment; Volume 25, Issue 25 (July 12, 2011)

"New urge to arbitrate" Boston Business Journal Op-Ed (2011)

Co-author, “Avoiding Wage and Hour Traps in Any Economy,” Bloomberg Law Reports (June 2010)

Author, “Mandatory Treble Damages for Wage and Hour Violations Cannot Be Applied Retroactively,” 27

MLW 1711 (June 2009)

Co-author, “Defending Hybrid FLSA Collective and State Wage and Hour Class Actions,” ABA Section of

Labor & Employment Law, Employee Rights and Responsibilities Committee (March 2007)

“Revitalizing FRCP 68: Can Offers of Judgment Provide Adequate Incentives for Fair, Early Settlement of

Fee-Recovery Cases?” Symposium Panelist, 57 Mercer L. Rev. 715 (Spring 2006)

Co-author, “The ‘No Contact’ Rule: Ex Parte Communications in Employment Litigation,” The College of

Labor & Employment Lawyers Newsletter, Vol. 4 No. 3 (Summer 2002)

Co-author of numerous articles on wage & hour, discrimination and other employment issues published in

a range of publications, periodicals, and trade journals.

Presentations

“Hot Topics in Wage and Hour Law & ERISA,” ABA Section of Labor and Employment Law, Employee

Rights and Responsibilities Committee, Midwinter Meeting (2015)

“Wage & Hour Developing Issues: Christopher v. SmithKline and the Supreme Court’s Consideration of

the Application of the Outside Sales Exemption to Pharmaceutical Sales Representatives and

Whether USDOL’s Amicus Briefs Are Entitled to Deference”; ACI’s 12th National Forum on Wage

Hour Claims and Class Actions (June 2012).

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"Wal-Mart v. Dukes: We Know What It Says, But What Does It Mean?" ABA Section of Labor &

Employment Law, Midwinter Meeting, (March 2012)

“Effective Motion Practice in Wage and Hour Class and Collective Actions”: ABA Section of Labor &

Employment Law 5th Annual Labor and Employment Law Conference. November 2-5, 2011.

“Creative Solutions Dealing with Class and Collective Actions, including Approaching Potential Class

Arbitration based on ATT Mobility v. Concepcion,” 19th Annual American Employment Law Council

(October 19-22, 2011)

“Effective Motion Practice in Wage and Hour Class and Collective Actions,” ABA 5th Annual Labor &

Employment Conference (2011)

“Settlement: Making the Decision, Calculating Damages, and Assessing Settlement Structure and

Administration Considerations,” ACI’s 12th Annual Conference (May 23-24, 2011)

“Settlement Considerations: Assessing the Benefits, Calculating Damages, and Settlement Structure

Administration,” ACI’s 11th National Forum on Wage Hour Claims and Class Actions (Feb. 2011)

“The East Coast Hotbeds: Florida, New York, and Massachusetts,” ACI’s 11th National Forum on Wage

Hour Claims and Class Actions (Feb. 2011)

“Pay Up! What Do FLSA Violations Really Cost?,” ABA 4th Annual Section of Labor and Employment

Law Conference (Nov. 2010)

“Dealing with Compensable Time,” American Employment Law Council, Eighteenth Annual Conference

(Oct. 2010)

“Survey of Recent Class, Collective, and Hybrid Cases under the FLSA and Similar State Laws” : ABA

Section of Labor & Employment Law, Employment Rights and Responsibilities Committee, Midwinter

Meeting (2010)

“Buccaneers of the Electronic Main: The Technology They Use and the Disputes They Spawn,” ABA

Section of Labor & Employment Law, Employment Rights and Responsibilities Committee, Midwinter

Meeting (2009)

“Pirates of the Corporation: Lift Outs and Corporate Raids,” ABA Section of Labor & Employment Law,

Employment Rights and Responsibilities Committee, Midwinter Meeting (2008)

“Cutting Edge Issues in Labor and Employment Law,” ABA Section of Labor & Employment Law,

Employee Rights and Responsibilities Committee, Midwinter Meeting (2007)

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“Settlement Strategies in Class, Collective or Pattern and Practice Cases,” ABA Section of Labor &

Employment Law, Employee Rights and Responsibilities Committee, Midwinter Meeting (2005)

“Who Are All of These Plaintiffs??? Class Actions: Collective Actions vs. Rule 23 Actions,” ABA Section of

Labor & Employment Law, Employee Rights and Responsibilities Committee, Midwinter Meeting

(2004)

“Employment Litigation Skills Training,” ABA Section of Labor & Employment Law, Management Co-Chair

(2003)

“Supreme Court and Supreme Judicial Court Review,” Massachusetts Continuing Legal Education (2004)

“U.S. Supreme Court and Supreme Judicial Court Year in Review 2002-2003: Employment Law,” MCLE

Program, Management Co-Chair (2003)

“More Than Rule 23: Successfully Defending Employment Law Class Actions,” ABA Section of Labor &

Employment Law, Employment Rights & Responsibilities Committee, Midwinter Meeting (2002)

“U.S. Supreme Court Year in Review: Employment Law” (Cases Decided in the 2002 Term),

Massachusetts Continuing Legal Education (2002)

“Mitigating Measures After the Sutton Trilogy,” ABA Section of Labor & Employment Law, Employee

Rights and Responsibilities Committee, Midwinter Meeting (2002)

“The Vanishing Employee and Accommodating the Disabled Worker,” Massachusetts Biotech Council

Presentation (1999)

Accolades

Recognized as a leading Lawyer for Labour and Employment - USA in Chambers Global (2014-2015)

Best Lawyers, Boston Labor and Employment Lawyer of the Year for 2011 and 2012

Chambers & Partners, Chambers USA: America’s Leading Business Lawyers; ranked Band One,

Massachusetts Management Employment Lawyers (2003-2014)

Recognized as a leading Lawyer for Labor and Employment in Massachusetts in Chambers USA:

America’s Leading Business Lawyers (2010-2014)

The Best Lawyers in America (2006 -2015)

Recognized in Legal 500, The Clients’ Guide to the U.S. Legal Profession, Labor & Employment

Litigation, 2010-2014

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PLC Global Counsel Handbook - Labour and Employee Benefits (2004 – 2005 Highly Recommended,

2005 – 2006 Leading, 2007 – 2008 Leading)

Fellow, College of Labor and Employment Lawyers (Class of 2000 to present)

Massachusetts Super Lawyer (2004-2014)

Legislative and Regulatory Testimony

United States House of Representatives, Committee on Education and the Workforce, Subcommittee on

Workforce Protections -- Hearing, "The Fair Labor Standards Act: Is It Meeting the Needs of the

Twenty-First Century Workplace?" Witness and Written Testimony (July 14, 2011)

Community Involvement

Historic District Commission, Auburndale, Massachusetts (2007 – present)

Massachusetts Democratic State Committee, Elected Member (2000 – 2005)

School Committee, Publicly Elected Member, Newton, Massachusetts (1994 – 1996, 1996 – 1998,

1998 – 2000)

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Seyfarth Shaw LLP 1

Noah A. Finkel

Chicago Office

(312) 460-5913

[email protected]

Areas of Practice

Labor & Employment

Wage & Hour Litigation

Experience

Noah Finkel is a partner in the Labor & Employment Department and is a Co-Chair of the Wage & Hour

Litigation Practice Group in Seyfarth Shaw LLP’s Chicago office. His principal area of concentration lies

in wage-and-hour matters, in which he has represented companies more than 100 actual or putative

collective and/or class action matters under the Fair Labor Standards Act and/or state wage-and-hour

laws. He also regularly advises companies on compliance with the Fair Labor Standards Act and state

wage-and-hour laws, including the performance of exempt status reviews and pay practice audits.

Mr. Finkel is one of three editors-in-chief of the treatise Wage & Hour Collective and Class Litigation, a

912-page book devoted to the litigation of wage & hour matters. The treatise literally is “the book” on

wage & hour litigation. Mr. Finkel participated in drafting of public comments to the United States

Department of Labor on its proposed regulatory changes to the FLSA’s white-collar exemptions on behalf

of the Society for Human Resources Management and the Public Sector FLSA Coalition.

Prior to joining Seyfarth Shaw, Mr. Finkel was law clerk to the United States District Judge Nancy G.

Edmunds for the Eastern District of Michigan.

Education

J.D., University of Michigan (1994)

Associate Editor, University of Michigan Journal of Law Reform (1992-1993)

B.A., University of Michigan, with distinction (1991)

Editor-in-Chief, The Michigan Daily (1990)

Admissions

Illinois

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Seyfarth Shaw LLP 2

Courts

U.S. Supreme Court

U.S. Courts of Appeals for the Third, Sixth, Seventh, and Tenth Circuits

U.S. District Court of the District of Colorado

U.S. District Court of the Central, Northern and Southern Districts of Illinois

U.S. District Court of the Northern and Southern Districts of Indiana

U.S. District Court of the Eastern and Western Districts of Michigan

U.S. District Court of the Eastern and Western Districts of Wisconsin

Representative Wage-and-Hour Cases

ABN Amro, Inc. adv. Adams, et al., 05 CV 61865 (S.D. Fla.) (amicably resolved FLSA collective

action in which non-exempt employees allege that the bank failed to include all required elements

in the regular rate

ABN Amro, Inc. adv. Mosack, et al., 04 CV 61333 (S.D. Fla.) (amicably resolved collective action

claims by mortgage consultants claiming that they were misclassified as exempt)

ACG Texas, L.P., et al. adv. Dalton, et al. (W.D. Tex.) (defending collective action alleging improper

use of tip credit as to servers at IHOP restaurants)

Addison Fire Protection Dist. No. 1 adv. Mathias, et al., 43 F. Supp. 2d 916 (N.D. Ill.) (through use of

Section 7(g)(2), obtained summary judgment against overtime claims by firefighters on claim that

regular rate was miscalculated)

AJM Packaging Corp. adv. Sedryna, et al., 003616/20133 (New York state court) (defending use of

overtime calculation pursuant to a fixed salary for fluctuating hours plan)

Aldi, Inc. adv. Honey, et al., 1:12-cv-8815 (N.D. Ill.) (defended company on collective and class action

claims that cashiers worked off-the-clock)

Aldi, Inc. adv. McNelley, et al., 1:09-cv-01868-PAG (N.D. Ohio.) (amicably resolved nationwide

collective action claiming that Store Managers are misclassified as exempt under the executive

exemption)

Aldi, Inc. adv. Santiago, et al., 8:13-cv-01186-AEP (M.D. Fla.) (amicably resolved collective action

claiming that Store Managers are misclassified as exempt under the executive exemption)

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Albuquerque, City of, adv. UTU Local 1745, et al., 178 F.3d 1109 (10th Cir. 1999) (obtained ruling in

which Court of Appeals held that time spent by bus drivers on employer-provided buses to

locations where they began bus routes -- and time spent between driving routes -- was not

compensable as "hours worked" under the FLSA for purposes of overtime compensation)

Alion Science and Technology Corp. adv. Lewis, et al., 2:09-cv-0329-LJM-WGH (S.D. Ind.) (amicably

resolved collective and class action claim claiming failure to pay for donning and doffing and for

other activities in preparation for shift)

Allied Waste Industries, Inc. and Browning Ferris Industries of Ohio, Inc., d/b/a Allied Waste Services

of Cleveland adv. McGhee, et al., 07 CV 1110 (N.D. Ohio) (amicably resolved FLSA collective

action and state law class action alleging failure to compensate for interrupted meal breaks,

donning and doffing before and after shifts, and other alleged off-the-clock work)

Allied Waste Services of North America, LLC adv. Marlon Tellez, et al., 08 C 20300 (S.D. Fla.)

(amicably resolved collective action alleging failure to pay overtime compensation for all hours

worked because the Company allegedly deducted 30 minutes from his time each day for a meal

period, even if one was not taken)

Allied Waste Transportation, Inc. adv. Darneal, et al., 39-2010-00243201 (Calif. Superior Court, San

Joaquin County) (defended company in putative class action claiming fail to pay for time worked

during meal periods and for meal period penalties)

Alta Colleges, Inc. adv. Burke, et al. 1:11-CV-029990-WYD-KLM (D. Colo.) (defending educational

institution against claim that field admissions representatives were misclassified as exempt;

obtained transfer of venue of related case)

American Medical Response of Illinois, Inc. adv. Abrams, et al. 96 CV 2089 (N.D. Ill.) (amicably

resolved FLSA collective action claiming sham overtime rate of pay)

American Steelworks, Inc., et al. adv. Ojeda, et al., 1:13-cv-05444 (N.D. Ill.) (defending claim that

various employees were misclassified as independent contractors)

APCOA/Standard Parking, Inc. adv. Garcia et al,. 03 CV 20039 (S.D. Fla.) (amicably resolved FLSA

collective action concerning allegations of unpaid overtime hours)

APCOA/Standard Parking, Inc. adv. Lilton, et al., 01 CV 7543 (N.D. Ill.) (amicably resolved FLSA

collective action brought by parking attendants concerning the regular rate of overtime calculation

on strength of mooting plaintiff’s claim)

Applebee’s, Inc. adv. Fast, et al., 2:06-cv-04146-NKL (W.D. Mo.) (amicably resolved claim by more

than 5,000 plaintiffs involving a claim under the tip credit provisions of the minimum wage)

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Applebee’s Services, Inc. adv. Cook, et al., 3:13-cv-01289-MJR-SCW (S.D. Ill.) (defending collective

action alleging improper use of tip credit and class action alleging failure to pay earned vacation

upon separation of employment)

Applebee’s Services, Inc., et al. adv. Dempsey, 1:13-cv-00677-M-PAS (D. R.I.) (defending collective

and class action alleging improper use of tip credit)

Aragon Entertainment Center, Inc. and F&F Concessions, Inc. adv. Moreno, et al. 06 CV 3350 (N.D.

Ill.) (amicably resolved collective action relating to calculation of overtime pay)

Architectural Artifacts, Inc. adv. Simmons, et al., 1:14-cv-09054 (N.D. Ill.) (defending collective and

class action claim alleging failure to pay overtime)

Asia on Illinois, LLC d/b/a Sunda New Asian adv. Snoep, 1:12-cv-02387 (N.D. Ill) (amicably resolved

class action alleging violation of tip credit rules)

Automatic Data Processing Inc. adv. Falco and Whitehead, et al. 07 C 1336 (N.D. Ill.) (amicably

resolved collective and state law class action claims that employees were misclassified as

exempt)

Bank of America, N.A. et al. adv. Cramer, et al., 12-cv-8681 (N.D. Ill.) (defending bank in collective

and class action claiming that sales managers, and mortgage loan associates are misclassified

as exempt)

Bank of America, N.A., et al. adv. Kelly, et al., 1:10-CV-05332 (N.D. Ill.) (amicably resolved collective

and class action claiming that mortgage loan officers are misclassified as exempt)

Baxter Healthcare Corp. adv. Wheeler, et al., 4:11-cv-00263 (W.D. Ark.) (defeated conditional

collective action certification and then obtained summary judgment in company’s favor in donning

and doffing claim)

Brouwer Brothers Steamatic, Inc. adv. Johnson, et al. 06 CV 5569 (N.D. Ill.) (amicably resolved

allegations of off-the-clock work)

Caesars Entertainment, Inc., et al. adv. Joseph, 10-cv-6293 (D.N.J.) (amicably resolved collective

and class action claiming that Table Games Supervisors are misclassified as exempt)

Caesars Entertainment, Inc., et al. adv. Clark, et al. 10-cv-6725 (D.N.J.) (defending class action

claiming that non-exempt casino employees worked off-the-clock before the start and after the

end of their shifts)

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Capital Grille Holdings, Inc., et al. adv. Jones et al., 12-cv-660 (N.D. Ill.) (defending company against

minimum wage, overtime, and discrimination class and collective action claims brought by

restaurant employees)

Carle Foundation Hospital adv. Walden, 2:14-cv-02095-HAB-JEH (C.D. Ill.) (defending hospital on

collective and class action claim that sleep technicians worked through meal periods without

compensation)

Challenger, Gray & Christmas, Inc., adv. Cooper, 2013 CH 3724 (Cook County Cir. Ct., Ill.)

(defending company against class action alleging misclassification of job search coaches as

exempt)

Chicago Meat Authority, Inc. adv. Reddix, et al., 2013 CH 21046 (Cook County Cir. Ct., Ill.)

(defending company against collective and class action complaint alleging failure to pay for

donning and doffing)

Chicago Messenger Service, Inc. adv. Gaytan et al., 1:13-cv-823 (N.D. Ill.) (defending company

against claim of misclassification of independent contractors)

Chicago Tribune Co. adv. Rusin, 1:12-cv-01135 (N.D. Ill.) (defended collective and class action claim

that non-exempt reporters performed off-the-clock work)

Chubb Insurance Company adv. Blue, et al. 03 CV 6692 (N.D. Ill.) (obtained summary judgment

ruling that insurance adjusters perform exempt duties as a matter of law)

City-Beverage, LLC adv. Allen, et al., 08 CV 0861 (N.D. Ill.) (amicably resolved purported class action

alleging failure to pay overtime wages for off-the-clock work on the strength of outside sales and

Section 7(i) exemptions)

Clarence Davids & Co. et al. adv. Vergara, et al. 1:12-cv-07245 (N.D. Ill.) (defending company

against collective and class action claim alleging off-the-clock work)

Continental Casualty Corp. (CNA) adv. Himmelman, et al., 06 CV 166 (D.N.J.) (amicably

resolved claim that certain insurance company adjusters are misclassified as exempt after

obtaining dismissal of state law claims and filing summary judgment motion on lead plaintiff’s

claim)

Countrywide Financial, et al. adv. McManus, et al., 09-cv-1705 (N.D. Ill.) (amicably resolved putative

class and collective action by underwriters challenging their exempt status)

CPI Corporation, et al. adv. Larkin, et al., 3:10-cv-00411 (W.D. Wis.) (amicably resolved collective

and class action alleging off-the-clock work)

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DT & C Global Management LLC, et al. v. Krantz, et al., 1:14-cv-00998 (N.D. Ill.) (defending company

against collective and class action claim alleging that limousine drivers were misclassified as

exempt under the Motor Carrier Act exemption)

Daily Press adv. Morton, et al. 02 CV 148 (E.D. Va.) (amicably resolved FLSA collective action in

which plaintiffs challenged whether they were properly classified as exempt employees on

strength of threatened summary judgment motion)

Davern’s Tavern & Lounge, et al. adv. Faltin, et al., 1:13-cv-07569 (N.D. Ill.) (defending collective and

class action by bartenders alleging improper use of tip credit and off-the-clock work)

DeVry University adv. Nielsen, et al., 302 F. Supp. 2d 747 (W.D. Mich. 2004) (obtained summary

judgment on behalf of university that 175 of its field representatives are exempt under the outside

sales exemption; the decision is now cited favorably by several courts finding pharmaceutical

representatives to be exempt under the outside sales exemption)

DeVry Inc, et al., adv. Dyer, et al. 09-61549 (S.D. Fla.) (amicably resolved off-the-clock claim brought

by admissions advisor)

DeVry Inc. et al., adv. Gillespie, et al., 09 cv 6041 (N.D. Ill.) (defended company in collective and

class action alleging that admissions advisors worked off the clock pre- and post-shift and were

not paid properly under the fluctuating workweek method of payment)

DeVry Inc. et al., adv. Mayes, et al., 10-10085 (D. N.J.) (amicably resolved nationwide collective

action claim that educational advisors/high school presenters are misclassified as exempt)

Earl Scheib, Inc. adv. Taylor, et al. 06 CV 5004 (N.D. Ill.) (amicably resolved collective action claim

that certain employees are misclassified as exempt)

Eldorado Trading Group, LLC adv. Vranjkovic, 1:14-cv-06810 (N.D. Ill.) (obtained dismissal based on

arbitration agreement of collective and class action claim alleging failure to pay overtime)

Encotech Construction Services, Inc. adv. O'Brien, et al. 2004 WL 609798 (N.D. Ill.) (amicably

resolved FLSA collective action and state law class action by concrete cutters alleging failure to

pay for travel time on strength of motions for partial summary judgment narrowing availability of

certain types of damages)

Epic Systems Corp. adv. Nordgren, 3:13-cv-00840-bbc (W.D. Wis.) (defending company in collective

and class action claiming that Quality Assurance employees are misclassified as exempt

employees)

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FPM Ipsen Heating, Inc. adv. De LaFuente, et al. 2002 WL 31819226 (N.D. Ill.) (defeated class

certification of state-law overtime claims in “hybrid case” on the basis of the availability of an

FLSA collective action)

General Electric Co. adv. Nelson, et al. 05 CV 2772 (D. Minn.) (amicably resolved collective and class

action claims that call center employees performed off-the-clock pre- and post-shift work)

Hard Rock Concrete Cutters, Inc. adv. Ladegaard, et al. 2004 WL 1882449 (N.D. Ill.) (amicably

resolved FLSA collective action and state law class action by concrete cutters alleging failure to

pay for travel time after succeeding on motions for partial summary judgment narrowing

availability of certain types of damages)

Heritage Enterprises, Inc., adv. King, et al. 3:10-cv-03039-JES-CHE (C.D. Ill.) (successfully defended

nursing home company on FLSA collective action brought by nurses who claim that they worked

through meal periods without compensation)

Hyatt Corporation adv. Vera, et al., 06 CV 20653 (S.D. Fla) (amicably resolved overtime claim by

banquet servers on behalf of hotel on strength of the Section 7(i) exemption)

Hyatt Hotels Corporation adv. Nunez, et al., 07 22995 (S.D. Fla.) (amicably resolved case brought by

class of dishwashers alleging failure to pay overtime wages for work performed over 40 hours)

Hyatt Hotels Corp. et al., adv. Marrero, et al., 09-cv-00310 (W.D. Pa.) (amicably resolved claim of off-

the-clock work brought by contract housekeepers)

Hyatt Corp., et al. adv. Sanchez, et al., 1:12-cv-00023-JMS-TAB (S.D. Ind.) (persuaded plaintiffs to

dismiss hotel on claim of off-the-clock work brought by contract workers)

Hyatt Corp. adv. Shah, et al. 09-4286 (E.D. Pa.) (amicably resolved overtime class action brought on

behalf of hotel assistant managers, claiming they were misclassified under the executive

exemption)

Hyatt Corporation adv. Heil, et al., 2:09-cv-00407-UA-DNF (M.D. Fla.) (persuaded plaintiff banquet

server’s counsel to voluntarily dismiss FLSA claim on strength of Section 7(i) exemption)

Hyatt Corporation adv. Murray, 1:05-00017-RWR (D.D.C.) (amicably resolved claim that information

technology employees were misclassified as exempt)

Hyatt Corporation adv. Underwood, et al. 8:10-cv-00848-JDW-TBM (M.D. Fla.) (amicably resolved

off-the-clock and tip credit claims by restaurant servers)

Hyatt Corporation adv. Miller, et al., 12-cv-61639 (S.D. Fla.) (amicably resolved putative collective

action brought on behalf of sous chefs)

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Hyatt Hotels Corp., et al. adv. Acosta, et al., 37-2012-00088307-CU-OE-CTL (California state court)

(defended claim that hotel wrongfully withheld tips from servers)

Hyatt Vacation Marketing Corp., et al. adv. Schultz, et al. 10-4568 (N.D. Cal.) (amicably resolved

collective and class action alleging company misclassified sales executives as exempt)

International House of Pancakes, LLC, et al. adv. Fredericks, et al., 12SL-CC04529 (Missouri state

court) (defending company on off-the-clock class action claim)

International Processing Corp. adv. Rosynek, et al., 99 C 2411 (N.D. Ill.) (amicably resolved collective

action claim that dispatchers were misclassified as exempt administrative employees)

Iowa College Acquisition Corp. and Kaplan University Group adv. Slayton, 09-cv-06977 (N.D. Ill.)

(defeated class certification motion in class action claim of off-the-clock work by admissions

advisors)

J. Alexander’s Restaurants, Inc. adv. Williams-Green, 09-cv-5707 (N.D. Ill.) (amicably resolved class

action by restaurant servers alleging off-the-clock work and violations of tip credit rules)

Kendall College Holdings, LLC, adv. Paul B. Wacker, 10 CV 8018 (N.D. Ill.) (amicably resolved

exempt status misclassification claim)

Levy Premium Foodservice L.P. adv. McShane, 1:14-cv-03921 (N.D. Ill.) (defending company on

claim that servers at U.S. Cellular Field were not paid properly under tip credit provisions)

Marriott International Inc. adv. Holbrook, et al., 08 CV 385 (N.D. Ill.) (amicably resolved case in which

plaintiff alleged that the company improperly calculated the regular rate of pay and overtime rate

under the FLSA and the Illinois Wage Payment and Collection Act)

Merck & Co., Inc. adv. Schedel, 07 CV 000391 (D. N.J.) (defended pharmaceutical company in

collective action alleging that its professional representatives were misclassified as exempt;

secured voluntary dismissal upon development of favorable Supreme Court precedent)

Merck Sharp & Dohme Corp. adv. Turner, et al., 3:12-cv-03105-RM-BGC (C.D. Ill.) (defended

pharmaceutical company in collective and clas action alleging that its professional

representatives were misclassified as exempt; secured voluntary dismissal upon development of

favorable Supreme Court precedent)

Miller Apple LLP adv. Gaye, et al., 1:13-cv-00113-RJJ (W.D. Mich.) (defended company on collective

and class action alleging violations of tip credit provisions as to servers and bartenders at

Applebee’s restaurants)

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Multi-Temps Inc., et al. adv. Luarca, 07 CV 01255 (N.D. Ill.) (amicably resolved FLSA collective action

where plaintiffs allege that the company failed to pay them overtime wages)

Naked Juice Co., et al. adv. Scheidt, 06 CV 6861 (N.D. Ill.) (amicably resolved off-the-clock claims in

a collective and class action on strength of Motor Carrier Act and Section 7(i) exemptions)

Neighborhood Restaurant Partners, LLC, et al. adv. Ide, 1:13-cv-00509-SCJ (N.D. Ga.) 1:13-cv-

00509-SCJ (defending company on collective action alleging violations of tip credit provisions as

to servers and bartenders at Applebee’s restaurants)

Neighborhood Restaurant Partners, LLC, et al. adv. McCoy, 5:14-cv-00018-DAE (W.D. Tex.)

(defending company on collective action alleging violations of tip credit provisions as to servers

and bartenders at Applebee’s restaurants)

Neighborhood Restaurant Partners Florida, LLC adv. Montoya, 8:14-cv-01262-MSS-EAJ (M.D. Fla.)

(defending company on collective action alleging off-the-clock work)

NMTC, Inc. d/b/a Matco Tools, adv. Matsuka, et al., 3:10-cv-03529 (D.N.J.) (obtained summary

judgment as to 15 plaintiffs who claimed that they were misclassified as exempt under the

administrative and/or outside sales exemptions)

Northwestern Memorial Hospital, et al., adv. DeMarco, 1:10-cv-000397 (N.D. Ill.) (defended hospital

on FLSA collective action and state law class action brought by nurses who claim that they

worked through meal periods without compensation)

Orient Machine Co. adv. Skobel, et al., 01 CV 7542 (N.D. Ill.) (amicably resolved FLSA collective

action concerning allegations of unpaid overtime wages)

Peapod, LLC adv. Lungan, 1:14-cv-09473 (N.D. Ill.) (defending company in collective and class

action brought by delivery drivers claiming compensation for on-call time)

Premium Concrete Cutting, Inc. adv. Sherman, et al., 2004 WL 1510030 (N.D. Ill.) (amicably resolved

travel time claims in collective and class action after obtaining partial summary judgment on

claims for payment of gap time and willfulness)

Prospect Mortgage, LLC adv. Sliger, et al., 11-cv-456 (E.D. Cal.) (defending company in several

cases claiming that mortgage loan officers are misclassified as exempt following decertification of

collective action)

Quantum Foods, Inc. adv. Carletto, et al., 05-CH-7012 (Ill. Cir. Ct., Cook County) (obtained dismissal

of donning-and-doffing class action against meat processing company based on Section 301

preemption; affirmed on appeal)

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Rainbow USA, Inc. adv. White, et al., 1:09-cv-684 (N.D. Ill.) (amicably resolved collective and class

action brought by retail employees claiming off-the-clock work)

Regis Corporation, adv. Eoff, et al., 1:10-cv-04032 (N.D. Ill.) (amicably resolved collective action

brought by area supervisors claiming that they are misclassified as exempt executives)

Republic Services, Inc. et al. adv. Charles, 09-CIV-81581 (S.D. Fla.) (amicably resolved claims by

drivers claiming that they worked through meal periods without compensation)

Republic Services, Inc. adv. Cordova, No. RG11593578 (Cal. Superior Ct. of Alameda County)

(defended company against class action alleging off-the-clock work and violation of California

meal period and overtime laws)

Republic Services, Inc. et. al. adv. Checkman, 37-2010-00086105-CU-OE-CTL (Cal Superior Ct. of

San Diego County) (amicably resolved class action alleging off-the-clock work and violation of

California meal period and overtime laws)

Republic Services, Inc. adv. Gordon, 12-cv-81186 (S.D. Fla.) (amicably resolved putative collective

action alleging failure to pay for work performed during uncompensated meal periods)

Republic Services, Inc. adv. Jones, et al., 14-cv-62943 (S.D. Fla.) (defending claim by drivers alleging

failure to pay for work performed during meal periods)

Republic Services, Inc. et al. adv. Medina, 5:12-cv-02596-PSG (N.D. Cal.) (defended company

against class action alleging off-the-clock work and violation of California meal period and

overtime laws)

Republic Services of Florida, L.P. adv. Morris, 14-cv-62797 (S.D. Fla.) (defending collective action by

drivers claiming failure to pay overtime in accordance with FLSA)

Republic Services, Inc. adv. Rodriguez and Campos, et al., 5:13-cv-00020-XR (W.D. Tex.) (defending

company on collective action claiming that regular rate was not properly calculated for overtime

purposes)

Republic Waste Services of Southern California LLC et. al adv. Samano, No. 30-2010-00421264-CU-

OE-CXC (Cal. Superior Ct. of Orange County) (amicably resolved class action alleging off-the-

clock work and violation of California meal period and overtime laws)

Republic Services, Inc. et al. adv. Perez and Beltran, et al., 8:12-cv-00773-JVS-RNB (C.D. Cal.)

(defended company against class action alleging off-the-clock work and violation of California

meal period and overtime laws)

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Republic Services, Inc. et al. adv. Serrano, 2:14cv77 (S.D. Tex.) (defending company in collective

action alleging that company failed to pay work for pre- and post-shift work and work during meal

periods and that the regular rate was not properly calculated for overtime purposes)

Republic Services adv. Williams, 14-cv-00014 (S.D. Miss.) (defended company in putative collective

action alleging failure to pay for work performed off the clock work)

Sargent & Lundy adv. Sarofim, et al. 99 CH 10180, (Ill. Cir. Ct. of Cook County) (amicably resolved

putative class action concerning the exempt status of field engineers)

Shamrock Cartage & Spotting Services, et al. adv. Clugston, et al,1:13-cv-01047-TWP-MJD (S.D.

Ind.) (defending company in collective action by spotters alleging that they were misclassified as

exempt under the Motor Carrier Act exemption to the FLSA)

SSM Health Care of Wisconsin, Inc. adv. Fosbinder-Bittorf, 3:11-cv-00592-wmc (W.D. Wis.)

(defending hospital on FLSA collective action and state law class action brought by nurses who

claim that they worked through meal periods without compensation)

SSM Health Care St. Louis adv. Smith et al., 4:12-cv-00490-TCM (E.D. Mo.) (amicably resolved

collective and class action claim by security guards who claim that they worked through meal

periods without compensation)

Staffmark Investment, LLC adv. Howard, 1:12-cv-03308 (N.D. Ill.) (defended company against class

action claim alleging failure to pay vacation pay upon termination of employment)

Standard Parking Corp. adv. Sarduy, et al., 03 CV 61938 (S.D. Fla.) (amicably resolved FLSA

collective action brought by parking attendants concerning the regular rate of overtime calculation

on strength of mooting plaintiff’s claim)

Stryker Sales Corp. adv. Crowell, 1:12-cv-01219-JMS-DML (S.D. Ind.) (defended company against

collective action claim that commissions were not included in the regular rate of pay)

Suburban Orthotics & Prosthetics, Inc. et al. adv. Perez-Guzman, 1:14-cv- 2752 (N.D. Ill.) (defending

company against collective and class action claim that employees were misclassified as

independent contractors)

Sun-Sentinel Company adv. Louis-Charles, 595 F. Supp. 2d 1304 and 2008 WL 708778 (S.D. Fla.)

(defeated conditional certification of FLSA collective action and obtained summary judgment on

basis that district coordinators for newspaper are exempt under the newspaper carrier exemption)

Sun-Sentinel Company adv. Zarra et. al, 12-cv-60542-JIC (S.D. Fla.) (obtained summary judgment on

basis that district coordinators for newspaper are exempt under the newspaper carrier exemption)

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Teletech, L.L.C, adv. Atkinson, et al. 3:14-cv-00253-WHR (S.D. Ohio) (defending company against

collective and class action off-the-clock claim by home-based customer service representatives)

Teletech Holdings, Inc. adv. Washington, 1:12-cv-02262-PAG (N.D. Ohio) (amicably resolved

collective action claim that employees at call center performed off-the-clock work)

TJX Companies, Inc. adv. Reed, et al., 04 CV 1247 (N.D. Ill.) (amicably resolved off-the-clock claims

of work during meal periods in collective and class action)

Total Security Management - Wisconsin, LLC, et al. adv. Freeman, et al., 3:12-cv-00461-wmc (W.D.

Wis.) (defended company against collective and class action claim brought by security guards

alleging off-the-clock work and failure to pay for training time)

United Healthcare Services, Inc. adv. Beevers, 4:10-cv-01410 (S.D. Tex.) (amicably resolved putative

nationwide FLSA collective action claiming that utilization management nurses are misclassified

as exempt)

United Healthcare Services, Inc. et al. adv. Cohen, 10-2027 (C.D. Cal.) (amicably resolved

nationwide FLSA collective action and California-wide class action alleging unpaid pre- and post-

shift work and missed meal periods by telesales employees)

UnitedHealth Group, Inc. et al. adv. Peters, 2:10-cv-02280 (D. Kan.) (amicably resolved putative

nationwide FLSA collective action alleging unpaid pre- and post-shift by customer service

representatives)

UnitedHealth Group, Inc., et al. adv. Wolfert, 08 CV 1643 (E.D. Mo.) (amicably resolved claim by

telecommuting customer service representatives claimed that they were uncompensated for pre-

and post-shift work that involved logging on and off of the company's computer system and

programs)

Wells Fargo Financial, Inc. adv. Compton, et al., 04 CV 211 (W.D. Okla.) (obtained summary

judgment on claim that loan center manager was misclassified as exempt; amicably resolved off-

the-clock claims in collective action)

Whirlpool Corp. adv. Khait, et al., 06 CV 6381 (E.D.N.Y.) (amicably resolved collective and class

action claims brought by service technicians claiming that they performed off-the-clock pre- and

post-shift work)

Publications

Co-Author, "Insights: Supreme Court Win for Employers," Chain Store Age (December 12, 2014)

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Co-Author, "Oregon Court Invalidates Revised Tip-Pool Regulations And Sides With Hospitality

Industry Group In Fight With DOL," Hospitality Alert, Seyfarth Shaw LLP (June 12, 2013)

Co-Author, Wage & Hour Collective and Class Litigation, ALM Law Journal Press (2012). Definitive

treatise on wage & hour litigation.

Co-Author, “Dukes v. Wal-Mart Stores Ruling: How This Win For Employers Impacts Wage & Hour

Class Actions,” 25 Westlaw Journal: Employment, 25 (July 12, 2011).

Co-Author, “Healthcare Employers Under Attack: The Rise of Wage & hour Class Action Lawsuits,”

13 CCH Health Care Compliance Letter, 14 (July 13, 2010).

Editor in Chief, “Recent Trends in Defending Federal Wage & Hour Complex Litigation,” a 152-page

paper Seyfarth Shaw LLP (2009).

Co-author, “Defending Hybrid FLSA Collective and State Wage & hour Class Actions,” 2007

Midwinter Meeting of the Employment Rights & Responsibilities Committee for the Labor &

Employment Law Section of the American Bar Association (March 27-31, 2007).

Author, “State Wage-and-Hour Law Class Actions: The Real Wave of ‘FLSA’ Litigation?” 7 Employee

Rights and Employment Policy Journal, 101 (2003), cited in Ellis v. Edward Jones Co., 427 F.

Supp.2d 43 (W.D. Pa. 2009).

Chapter Editor, The Fair Labor Standards Act 2006 Cumulative Supplement, Contributing Editor, The

Fair Labor Standards Act 2002, 2003, 2004, and 2005 Cumulative Supplements (American Bar

Association, 2002, 2003, 2004, 2005, and 2006).

Co-Author, “Employment and Labor Disputes,” Alternative Dispute Resolution – The Litigator’s

Handbook, American Bar Association (2000).

Co-Author, “The Tortured Path of Affirmative Action in Public Employment,” American Bar Association

Section of Labor and Employment Law, Annual Meeting Program Papers (1995).

Noah is a frequent contributor to The Wage & Hour Litigation Blog, found at

www.wagehourlitigation.com.

Recognitions

Illinois Super Lawyer, Illinois Super Lawyers magazine (2005-2014).

Recognized by Legal 500 (U.S. edition) - “clients say that Noah Finkel in Chicago provides ‘very

good guidance on FLSA matters’ and ‘is very practical.’”

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Kyle A. Petersen

Chicago Office

(312)460-5950

[email protected]

Areas of Practice

Labor and Employment

Wage & Hour Litigation, Single Plaintiff Litigation, Workplace Counseling & Solutions

Experience

Kyle Petersen is a member of Seyfarth Shaw LLP’s Labor and Employment Department. She litigates all

manner of employment disputes on behalf of employers throughout the country. As a member of the

Firm’s Wage & Hour Litigation practice group, Ms. Petersen devotes a significant portion of her practice to

representing employers across the United States in court litigation and administrative matters arising

under federal and state wage and hour laws, and is a chapter author of the definitive treatise on wage

and hour litigation, Wage & Hour Collective and Class Litigation. In addition, Ms. Petersen is an author

for Practitioner Insights, a Thomson Reuters offering on the WestlawNext legal research platform in which

she provides practical, focused analysis of wage and hour issues. Ms. Petersen also provides

preventative counseling and works with employers to minimize their exposure to investigation and

litigation under the Fair Labor Standards Act and state wage and hour laws. Ms. Petersen’s experience

in this growing area includes second chairing a lengthy bench trial, resulting in the denial of overtime

claims asserted by multiple plaintiffs against a Fortune 1000 company. The trial came after defeating

plaintiffs’ attempts to certify a class of over one thousand employees.

In addition, Ms. Petersen has successfully represented management against all types of discrimination

and harassment claims, including those asserted under Title VII of the Civil Rights Act of 1964, the

Americans with Disabilities Act, the Age Discrimination in Employment Act, the Family and Medical Leave

Act, the Illinois Human Rights Act, and other state laws. Her experience includes litigation of non-

competition agreements and other restrictive covenants, in addition to the defense of defamation claims

under state law. Ms. Petersen also regularly conducts internal investigations, negotiates and drafts

employment and separation agreements, and advises employers on implementing personnel policies and

mitigating risk in employment decisions. In counseling employers, she focuses not only on instituting

legally compliant practices, but also on creating solutions consistent with management’s business

objectives.

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Ms. Petersen’s work on behalf of employers has been recognized by Illinois Super Lawyers, which has

named her an Illinois Rising Star (2008-2013).

Education

J.D., Chicago-Kent College of Law, Illinois Institute of Technology, Order of the Coif, High Honors

(2001)

Law Review, CALI Award Winner for highest grade in Legal Writing II and Legal Drafting

Semifinalist, Charles Evans Hughes Moot Court Competition

B.A., Indiana University, Bloomington (Political Science) (1995)

Honors Scholar

Admissions

Illinois

Courts

U.S. District Court Northern and Central District of Illinois

Northern District of Illinois Federal Trial Bar

U.S. Court of Appeals for the Seventh Circuit

U.S. District Court for the Western District of Michigan

Affiliations

Chicago Bar Association

American Bar Association

Friends of Drummond (Board Member)

West Bucktown Neighborhood Association (Former Vice President and Board Member)

KAM Isaiah Israel, Personnel Practices (Former Committee Chair)

Center on Halsted, Community and Cultural Affairs Committee (Former Member)

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Representative Cases and Experience

Cramer, et al. v. Bank of America, N.A., et al., U.S.D.C. for N.D. Illinois, Docket No. 12-cv-8681

(defense of putative nationwide collective action asserting misclassification of retail sales

managers, sales managers, assistant managers, and other mortgage origination employees

under federal law, in addition to class action claims under Illinois law)

Wilkins, et al. v. Bank of America, N.A., et al., U.S.D.C for N.D. Illinois, Docket No. 11-cv-00962

(defense of putative nationwide collective action asserting minimum wage and overtime claims on

behalf of mortgage loan officers under federal law, in addition to class action claims under Illinois

law)

Kelly, et al. v. Bank of America, N.A., et al., U.S.D.C for N.D. Illinois, Docket No. 11-cv-05332

(defense of putative nationwide collective action asserting misclassification of mortgage loan

officers, in addition to putative class action claims based on New York and Illinois law)

Fosbinder-Bittorf v. SSM Healthcare of Wisconsin, U.S.D.C. for W.D. Wisconsin, Docket No. 11-cv-

592 (defense of putative collective action of nurses asserting off-the-clock claims, in addition to

putative class action claims based on Wisconsin law)

Alvarado, et al. v. Neptun Light, Inc., U.S.D.C. for N.D. Illinois, Docket No. 13-cv-3199 (defense of

putative collective action asserting misclassification of independent contractors, in addition to

putative class action claims based on Illinois law)

Shammo, et al. v. Kan Zaman, et al., U.S.D.C. for N.D. Illinois, Docket No. 13-cv-2366 (defense of

multi-plaintiff action asserting misclassification of manager and off-the-clock overtime claims

under Illinois and federal law).

Schedel v. Merck & Co., U.S.D.C. for D. New Jersey, Docket No. 07-cv-391 (defense of nationwide

collective action asserting misclassification of pharmaceutical representatives under federal law)

Smith v. SSM Healthcare St. Louis, U.S.D.C. for E.D. Missouri, Docket No. 4:12-cv-00490 (defense of

putative collective action of security officers asserting off-the-clock claims, in addition to putative

class action claims based on Missouri law)

Rusin v. Chicago Tribune Co., U.S.D.C. for N.D. Illinois, Docket No. 12-cv-1135 (defense of putative

collective action of reporters asserting off-the-clock claims, in addition to putative class action

claims based on Illinois law)

Zarra v. Sun-Sentinel Co., U.S.D.C. for S.D. Florida, Docket No. 12-cv-60542 (defense of putative

collection action asserting misclassification of district coordinators under federal law)

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Turner v. Merck Sharp & Dohme Corp., U.S.D.C. for N.D. Illinois, Docket No. 12-cv-3105 (defense of

putative collective action asserting misclassification of pharmaceutical representatives under

federal law)

Finnigan, et al. v. Career Education Corporation, Cook County Circuit Court, Docket No. 03-CH-

18335 (second chaired a lengthy bench trial, resulting in the denial of overtime claims asserted by

multiple plaintiffs; the trial came after defeating plaintiffs’ attempts to certify a class of over one

thousand employees)

Skelton, et al. v. American Intercontinental University Online, U.S.D.C. for N.D. Illinois, Docket No.

03-cv-9009 (defense of multi-plaintiff off-the-clock and retaliatory discharge claims under federal

and state law)

Vander Vennet v. American Intercontinental University Online, U.S.D.C. for N.D. Illinois, Docket No.

05-cv-4889 (defense of collective action asserting off-the-clock overtime claims under federal law)

Pulley v. UnitedHealth Group Inc., U.S.D.C. for E.D. Arkansas, Docket No. 11-cv-634 (defense of

discrimination and FLMLA claims)

McCracken v. Talbots Inc., Court of Common Pleas, Montgomery County, Ohio, Docket No. 11-cv-

634 (defense of wrongful termination claim under Ohio Civil Rights Act)

Dowell v. Germain Motor Company, Court of Common Pleas, Franklin County, Ohio, Docket No.

12CV-634 (defense of discrimination, wrongful termination, and retaliation claims under Ohio Civil

Rights Act)

Tirfe v. Germain Motor Company, Court of Common Pleas, Franklin County, Ohio, Docket No. 12CV-

04-4995 (defense of discrimination, harassment, wrongful termination, and retaliation claims

under Ohio Civil Rights Act and Ohio common law)

Strychalski v. Baxter Healthcare Corp., U.S.D.C. for N.D. Illinois, Docket No. 11-cv-7747 (defense of

age discrimination claims under federal law)

Represented proprietary trading firm in a AAA arbitration fully defeating former executive’s breach of

contract claim under which he alleged he was entitled to a twelve percent equity stake in the firm.

The hearing also included extensive expert testimony regarding the former executive’s spoliation

of evidence and resulted in an award of attorneys' fees for the client.

Represented nationally recognized investment bank in several internal investigations, including

allegations of sexual harassment, retaliation, and pregnancy discrimination.

Represented national exchange in multi-claimant EEOC investigation regarding allegations of

discriminatory promotion policies.

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Obtained a summary judgment victory on behalf of Midwest manufacturing company in an age and

disability discrimination suit in federal court. The Seventh Circuit Court of Appeals subsequently

affirmed summary judgment.

In a case involving the protection of the client’s trade secrets and customers, despite the absence of

any restrictive covenant agreement, successfully persuaded federal judge that the executive, with

the approval of his prospective employer, breached his fiduciary duties to the company, thereby

entitling client to an injunction prohibiting the executive, his new employer, as well as anyone

acting on their behalf, from soliciting or doing business with several of our clients during a critical

period.

Presentations and Publications

“Employment Law Concerns for Employers With Contingent Workforces,” VMS Professionals

Conference (May 24, 2013)

“Reclassifying Exempt Employees: Navigating Wage and Hour Pitfalls,” C4CM Webinar (April 17,

2013)

“How to Avoid Costly Wage & Hour Pitfalls for Construction, Engineering & Landscaping Employees,”

Epay Webinar (March 13, 2013)

“Dukesing It Out: Tighter Post-Dukes Standard Helps Defeat Request For Class and Collective Action

Certification,” Seyfarth Shaw’s Wage & Hour Litigation Blog, Co-Author (January 23, 2013).

“It’s A Matter of Fact: Sixth Circuit Holds that the Primary Duty Determination is Indeed A Question of

Fact Properly Put to Jury and Affirms Employer Verdict in Henry v. Quicken Loans,” Seyfarth

Shaw’s Wage & Hour Litigation Blog (October 20, 2012).

“Wage & Hour Update: Everything You Need to Know Now and in the Future,” Seyfarth Shaw LLP

Breakfast Briefing (September 27, 2012).

“Complying With the Illinois Day and Temporary Labor Services Act,” Assurance University (July 17,

2012).

Co-Author, “The Impact of Fisher v. Right Aid, Part I,” Employment Law 360 (June 8, 2012).

“Here, There, and Everywhere A Lawsuit: The Third Circuit Green Lights Parallel FLSA and State

Law Wage Suites,” Seyfarth Shaw’s Wage & Hour Litigation Blog (April 2, 2012).

Chapter Co-Author, “Wage & Hour Collective and Class Litigation (The definitive treatise on wage

and hour litigation.),” ALM Law Journal Press (2012)

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“Pharmaceutical Representatives as Exempt? Contrary to the 3rd and 9th Circuits, a Florida District

Court Enters the Fray,” Seyfarth Shaw's Wage & Hour Litigation Blog (July 18, 2011)

"Mandatory Vaccination Policies & Hospitals," Metropolitan Chicago Healthcare Council (August

2010)

"Legal Issues in the New Workplace," Media Finance Focus 2010 Conference, Nashville, TN (May

2010)

“New Laws, Bad Economy: An Update on the Changing Landscape of Employment Law,” Katten

Muchin Rosenman LLP Labor and Employment Roundtable, Chicago, Illinois (April 2009)

“FLSA Overtime Issues: Employees Gold Mine vs. Your Bottom Line,” Katten Muchin Rosenman LLP

Labor and Employment Roundtable, Chicago, Illinois (September 2008)

“Bridge the Gap: Basic Skills for Newly Admitted Attorneys,” Practicing Law Institute, Chicago, Illinois

(September 2008)

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Arthur J. Rooney

Chicago Office

(312) 460-5530

[email protected]

Areas of Practice

Labor & Employment

Complex Litigation; Wage & Hour Litigation; Single Plaintiff Litigation

Experience

Arthur Rooney is a partner in the Labor & Employment Department of Seyfarth Shaw LLP. His practice

focuses on the defense of employers in employment litigation before federal and state courts and

administrative agencies throughout the nation, including class action and multi-plaintiff employment

discrimination lawsuits, state law overtime class actions, FLSA collective actions, and trade secrets and

restrictive covenant matters. Because many of the cases in which Mr. Rooney has been involved have

been brought as class or collective actions, he has significant experience in opposing class certification

motions, has worked directly with experts in the fields of statistics and industrial engineering in response

to class motions, and has resolved class actions through negotiated settlements.

Mr. Rooney also advises employers on preventive measures, including reviewing employment policies,

counseling on disciplinary actions and investigations, negotiating severance and release agreements, and

conducting employment practices reviews.

Mr. Rooney serves on the firm’s Pro Bono Committee and actively participates in pro bono matters.

Currently, he is engaged in representing a prisoner in a civil rights suit after successfully appealing the

district court’s dismissal of the prisoner’s First Amendment claim.

Prior to joining Seyfarth Shaw, Mr. Rooney clerked for Judge Mary Beck Briscoe of the U.S. Court of

Appeals for the 10th Circuit.

Education

J. D., University of Virginia School of Law (2001)

B.A., James Madison University, magna cum laude (1998)

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Admissions

Illinois

Courts

U.S. District Courts for the Northern, Central, and Southern Districts of Illinois

U.S. District Courts for the Northern and Southern Districts of Indiana

U.S. District Court for the Western District of Michigan

U.S. Courts of Appeals for the Third and Seventh Circuits

Affiliations

American Bar Association

Federal Bar Association

Representative cases

Becerra v. The McClatchy Co., Case No. 09-cv-00125 (E.D. Cal. 2009) (Putative class action alleging

that the plaintiffs were misclassified as independent contractors rather than employees.)

City of East Chicago v. Lake County Transfer, Inc., 854 N.E.2d 23 (Ind. Ct. App. 2006) (Represented

client in a successful petition to transfer a breach of contract lawsuit to the Indiana Supreme

Court. Obtained favorable settlement after the Indiana Supreme Court granted review and

vacated the decision of the Court of Appeals.)

Dalton v. Lee Publications, Inc., Case No. 08-cv-1072 (S.D. Cal. 2008) (Defense of putative class

action lawsuit alleging violations of California wage and hour laws in connection with the

classification of plaintiffs as independent contractors rather than employees.)

EEOC v. McIntyre Group, Ltd., Case No. 07-cv-5458 (N.D. Ill. 2007) (Represented employer against

class action race discrimination lawsuit brought by the EEOC.)

Galindo v. The McClatchy Co., Case No. 34-2009-00033850-CU-OE-GDS (Cal. Super. Ct. 2009)

(Putative class action challenging the classification of plaintiffs as independent contractors rather

than employees. Plaintiffs allege that they and other contractors were denied overtime, meal and

rest breaks, and other violations of the California Labor Code.)

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Grubaugh v. Weyerhaeuser Co., Case No. 06-cv-788 (S.D. Ohio 2006) (Defended employer from

allegations that it violated the Family and Medical Leave Act.)

Heil v. Hyatt Corporation, Case No. 2:09-cv-407 (M.D. Fla. 2009) (Defense of wage and hour

collective action for alleged failure to pay overtime.)

JDA Software Group Inc. v. Rouleau, Case No. 2006-CH-22113 (Cir. Ct. of Cook County, Ill. 2006)

(Represented client in non-compete dispute involving the enforceability of a high-level employee’s

restrictive covenants.)

Lewis v. Alion Science and Technology Corporation, Case No. 2:09-cv-00329 (S.D. Ind. 2009)

(Defense of wage and hour collective and class action claiming failure to pay for donning and

doffing and for other pre- and post-shift activities.)

Mattenson v. Baxter Healthcare Corp., 438 F.3d 763 (7th Cir. 2006) (Represented employer in a

successful appeal involving the reversal of a $1 million jury verdict in an age discrimination case.)

Matthews v. BP Corp. of North America Inc., Case No. 05-cv-6666 (N.D. Ill. 2005) (Defended

employer in putative ERISA class action lawsuit. Obtained a voluntary dismissal of the lawsuit

after filing a motion to dismiss.)

McManus v. Countrywide Financial Corp., Case No. 09-cv-1705 (N.D. Ill. 2009) (Putative nationwide

collective and class action involving underwriters. Plaintiffs allege that they should have been

classified as nonexempt employees entitled to overtime under the FLSA and multiple state wage-

hour laws.)

Sanders v. City of East Chicago, Case No. 05-cv-276 (N.D. Ind. 2005) (Obtained summary judgment

in a case filed by a former employee alleging First and Fourteenth Amendment claims based on

his termination.)

Shah v. Hyatt Corporation, Case No. 10-1492 (3d Cir. 2011) (Obtained reversal of district court’s

order remanding a putative class action to state court.)

Slayton v. Kaplan Inc., Case No. 09-cv-6977 (N.D. Ill. 2009) (Successfully opposed plaintiff’s motion

to certify a class of employees who alleged they were required to work off the clock without

compensation.)

Smith v. DHL Express (USA), Inc., Case No. 08-cv-5436 (N.D. Ill. 2008) (Defended employer against

sexual harassment lawsuit, which settled on favorable terms following mediation.)

Vega v. Contract Cleaning, Case No. 03-cv-9130 (N.D. Ill. 2003) (Defended client in FLSA collective

action and state law overtime class action brought by janitors who claimed they were improperly

treated as independent contractors.)

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White v. Rainbow USA, Inc., Case No. 09-cv-0684 (N.D. Ill. 2009) (Defense of putative class action

for alleged failure to pay overtime and unpaid off-the-clock work originally filed in state court, then

successfully removed to federal court.)

Wolfert v. UnitedHealth Group Incorporated, Case No. 08-cv-1643 (E.D. Mo. 2008) (Defense of

putative nationwide FLSA collective action involving call center employees who claimed they

worked off the clock and were denied overtime. Obtained favorable class-wide settlement after

discrediting plaintiffs’ claims through the use of a time study.)

Presentations

Interviewed and quoted in Employment Law360, "7th Circ. Deals Blow To DOL Interpretations Of The

FLSA" (May 11, 2012)

“Workplace Investigations,” Lorman Seminar, New Orleans, LA (2008)

Publications

Chapter Author, “Chapter 11 - Defending ERISA Claims in Wage and Hour Actions,” Wage & Hour

Collective and Class Litigation, ALM Law Journal Press (2012). Definitive treatise on wage and

hour litigation.

“How Safe is Your Arbitration Agreement Post - AT&T Mobility v. Concepcion?,” Seyfarth Shaw -

Strategy & Insights (January 6, 2012)

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Seyfarth Shaw LLP

World Trade Center East

Two Seaport Lane

Suite 300

Boston, MA 02210-2028

(617) 946-4800

fax (617) 946-4801

www.seyfarth.com

Integrity Staffing and Sandifer:The Supreme Court Addresses Compensable Time

Richard L. Alfred and Jessica Schauer LiebermanSeyfarth Shaw LLP

I. Introduction

Four years ago, we published an article in the ABA Journal of Labor and Employment

Law describing the convoluted history of the Supreme Court’s attempts to define “work” under

the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. (“FLSA”).1 That paper concluded that the

Supreme Court should step in to define more clearly the contours of the “continuous workday”

doctrine in modern workplaces. Since then, the Supreme Court twice has weighed in on the

concept of compensable time, first in Sandifer v. United State Steel Corp.,2 and then in Integrity

Staffing Solutions, Inc. v. Busk.3 While both of these unanimous decisions help elucidate some

aspects of this complex area of law, they also create new wrinkles that undoubtedly will continue

to puzzle employers and practitioners for years to come. In addition, they leave open key

questions about application of the “continuous workday” doctrine, particularly in non-industrial,

non-union workplaces.

II. Integrity Staffing

The Integrity Staffing case centered on the distinction between compensable “principal

activities” and non-compensable “preliminary and postliminary activities.” The defendant

employer in the case provides warehouse staffing for online retailer Amazon.com. Two of the

company’s employees filed suit in 2010 alleging that they and their colleagues should have been

1 Richard L. Alfred & Jessica M. Schauer, “Continuous Confusion: Defining the Workday in theModern Economy,” 26 ABA J. Lab. & Emp. L. 363 (Spring 2011) (attached).2 --- U.S. ---, 134 S.Ct. 870 (2014).3 --- U.S. ---, 135 S.Ct. 513 (2014).

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paid for the roughly 25 minutes they spent waiting in line to pass through an anti-theft security

checkpoint at the end of each workday. The district court dismissed the Plaintiffs’ claims, ruling

that the time at issue was non-compensable postliminary time under 29 U.S.C. § 254(a), part of

the 1947 FLSA amendments known as the “Portal-to-Portal Act.” 4 The Ninth Circuit Court of

Appeals reversed the district court’s decision, holding that the plaintiffs had stated a plausible

FLSA claim and the time they allegedly spent passing through the security checkpoint was

compensable because “the security clearances are necessary to employees’ primary work as

warehouse employees and done for Integrity’s benefit.”5

In December 2014, the Supreme Court in an opinion by Justice Thomas reversed the

Ninth Circuit’s decision, expressly rejecting any test that “turns on whether the activity is for the

benefit of the employer” as overbroad.6 Recalling its 2005 decision in IBP, Inc., v. Alvarez,7 the

Court explained that the time at issue would be compensable if it were an “integral and

indispensable part of the principal activities” performed by the warehouse employees.8 The

Court then held that to be considered “integral and indispensable,” an activity must be “an

intrinsic element of those [principal] activities and one with which the employee cannot dispense

if he is to perform his principal activities.”9 The security screenings did not meet this test: they

were not an “intrinsic element” of the employees’ job of retrieving products from warehouse

shelves and packaging them for shipment, and they could have been eliminated by Integrity

altogether “without impairing the employees’ ability to complete their work.”10

4 Id. at 516. Section 254 states that “(1) walking, riding, or traveling to and from the actualplace of performance of the principal activity or activities which such employee is employed toperform, and (2) activities which are preliminary to or postliminary to said principal activity oractivities” are excluded from compensable time for purposes of determining compliance with theFLSA’s overtime and minimum wage provisions. 29 U.S.C. § 254 (a).5 Busk v. Integrity Staffing Solutions, Inc., 713 F.3d 525, 531 (9th Cir. 2013) rev'd 135 S. Ct. 513(2014).6 134 S.Ct. at 519.7 Id. at 517 (citing IBP, Inc. v. Alvarez, 546 U.S. 21, 29-30 (2005)).8 Id.9 Id.10 Id. at 518.

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III. Sandifer

The Sandifer decision concerned a question of somewhat narrower application than

Integrity Staffing, and the case garnered less attention. However, as discussed further below, the

analysis undertaken by the Court in this decision reveals a good deal about the manner in which

the Supreme Court views FLSA cases more generally. The case was filed by unionized

employees of a steel plant who claimed that time they spent “donning and doffing” required

protective gear should have been paid despite an agreement between their employer and union

that it could be excluded from the compensable workday. The case turned on the application of

§ 203(o) of the FLSA, which permits employers to exclude “time spent in changing clothes . . . at

the beginning or end of each workday” as part of a collective bargaining agreement.11 The

plaintiffs claimed that the twelve most common types of gear at issue -- which included a flame-

retardant jacket, hardhat, gloves, boots, safety glasses, earplugs, and a respirator -- did not fall

within that exception because they served a protective function and thus could not be considered

“clothes.” The district court, Seventh Circuit, and ultimately the Supreme Court disagreed. In

an opinion by Justice Scalia, the Court looked to the dictionary definition of the term “clothes”

and held that it denotes “items that are both designed and used to cover the body and are

commonly regarded as articles of dress.”12 It then determined that nine of the twelve specific

items worn by the plaintiffs in the case met this definition regardless of the fact that they had a

protective function.13

The remaining three items -- safety glasses, ear plugs, and respirators -- could not be

considered “clothes” under the Court’s definition. The Court rejected the Seventh Circuit’s

approach to dealing with such non-clothing items, which had relied on the de minimis doctrine.

That doctrine counsels that “[w]hen the matter in issue concerns only a few seconds or minutes

of work . . . such trifles may be disregarded.”14 The Court pointed out that “[a] de minimis

doctrine does not fit comfortably within [§203(o)], which, it can fairly be said, is all about trifles

-- the relatively insignificant periods of time in which employees wash up and put on various

11 29 U.S.C. § 203(o).12 134 S.Ct. at 876.13 Id. at 879-80.14 Anderson v. Mt. Clemens Pottery Co., 328 US 680, 698 (1946).

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items of clothing needed for their jobs.”15 However, it agreed that courts should not be required

to tease out what portion of a given period of time falls within §203(o) and what time does not:

“it is most unlikely that Congress meant §203(o) to convert federal judges into time study

professionals.”16 Instead, it instructed courts to determine “whether the period at issue can, on

the whole, be fairly characterized as ‘time spent in changing clothes or washing.’”17 Because

there was little question that the majority of the time at issue was spent donning and doffing

items that qualified as “clothes,” the entire period was subject to bargaining through §203(o).

IV. Analysis

A. Impact of Integrity Staffing and Sandifer: Answered and Unanswered Questions

Integrity Staffing and Sandifer each clarified aspects of the FLSA that had been the

subject of debate and litigation. For example, the definition of “clothes” under § 203(o) had

remained unclear for years, due at least in part to the Department of Labor’s shifting views.

Between 1997 and 2010, the DOL issued four different guidance documents purporting to

elucidate the subject, two of which (in 1997 and 2010) opined that protective gear was not

“clothes,” and two of which (in 2002 and 2007) opined that it was.18 Likewise, Integrity Staffing

made clear that whether a particular activity is “required” or “for the benefit” of an employer is

not the relevant question in determining whether time is compensable.19 To the extent that any

question remained about the continuing viability of the definition of the “workweek” put forward

in Anderson v. Mount Clemens Pottery20 -- the 1947 case that prompted Congress to pass the

15 Id. at 880 (emphasis in original).16 Id.17 Id. at 881 (emphasis in original).18 See Department of Labor, Administrators Interpretation 2010-2 (Jun. 16, 2010) (describingprior opinion letters), available athttp://www.dol.gov/WHD/opinion/adminIntrprtn/FLSA/2010/FLSAAI2010_2.pdf. In Sandiferitself, the Solicitor General filed an amicus brief on the defendants’ behalf asking the Court notto consider the DOL’s 2010 Administrator’s Interpretation.19 Integrity Staffing, 135 S. Ct. at 519; see also Gibbs v. City of New York, No. 12-CV-8340,2015 WL 321850, at *11 (S.D.N.Y. Jan. 23, 2015).20 Anderson v. Mt. Clemens Pottery Co., 328 US 680, 690-91 (1947) (defining workweek toinclude “all time during which an employee is necessarily required to be on the employer’spremises, on duty or at a prescribed workplace.”)

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Portal-to-Portal Act -- that question is now firmly answered in the negative. Integrity Staffing

also defined what it means for a task to be “integral and indispensable” to a principal activity,

thus filling an interpretive gap left by IBP v. Alvarez. The new definition narrows the “integral

and indispensable” test by requiring plaintiffs to prove that an activity is an “intrinsic element”

of a principal activity.

However, these cases also leave open significant questions. One reason for this is that

both cases arise from employment settings that look much like the types of traditional

manufacturing workplaces that populated the Supreme Court’s early FLSA cases: Sandifer

concerned a steel plant, and Integrity Staffing an Amazon.com fulfillment center that in some

respects may be said to resemble an industrial environment. The Court has yet to examine the

“continuous workday” context of the service sector, even though that is where the vast majority

of workers are now employed. In 2012, only about 8.2% of the U.S. workforce worked in

manufacturing, whereas close to 79.9% worked in the service industry. 21 That gap is expected to

grow even more pronounced over the next decade.22 To be sure, the Court’s recent decisions

(particularly Integrity Staffing) have general applicability. However, the more variable staffing

and scheduling practices of the service sector, which often are driven by client needs and

preferences, may give rise to additional types of wage and hour disputes.

Relatedly, neither case gave the Court occasion to consider the impact of technology on

the modern workforce. For example, an increasing number of employees perform work away

from their employers’ premises, and this trend also is expected to continue.23 The “continuous

workday” paradigm that underpins both Integrity Staffing and Sandifer is in tension with this

new reality. If an employee spends fifteen minutes using his smart phone to respond to a clearly

work-related email in the morning before leaving home for work -- an activity that is likely

“integral” and may also be “indispensable” to his job -- is his subsequent commute a part of the

continuous workday and, therefore, compensable? The Supreme Court’s latest precedents do

21 Bureau of Labor Statistics, Employment Projections: Employment by major industry sector,http://www.bls.gov/emp/ep_table_201.htm.22 Id.23 See, e.g., “It’s Unclearly Defined, but Telecommuting Is Fast on the Rise,” N.Y. Times, March8, 2014, B6, available at http://www.nytimes.com/2014/03/08/your-money/when-working-in-your-pajamas-is-more-productive.html?_r=0.

Page 76: Keeping up With Wage and Hour Law - Seyfarth Shaw

Page 6

not resolve this question. Indeed, in granting certiorari in Sandifer, the Court expressly declined

to address the related question of whether activities made non-compensable by operation of

§203(o) nonetheless start the continuous workday, rendering subsequent non-principal activities

compensable.24

B. Looking Beyond Integrity Staffing and Sandifer

Beyond what they actually decide, both Integrity Staffing and Sandifer are also of interest

for what they reveal about the Supreme Court’s attitude toward FLSA litigation. Both decisions

reflect an intent to prevent FLSA cases from unnecessarily diverting judicial time and resources,

which likely reflects an awareness by the Court that the number of cases under the statute has

increased dramatically over the past 25 years.25 Both opinions include passages detailing the

“flood” of litigation that followed the Court’s attempts in the 1940s to define “work” in an

expansive fashion.26 Justice Thomas suggests in Integrity Staffing that the test espoused by the

Ninth Circuit, which he dubs “similarly overbroad,” could have effects similar to these early

decisions.27 Justice Scalia in Sandifer more directly expresses concern about the potentially

time-consuming nature of such cases with his warning that federal courts should not need to play

the role of “time study professionals.”28

Both decisions also express a surprising preference for leaving details of application of

the FLSA to private negotiations between employers and employees as a further means to reduce

the burden on courts. In Sandifer, Justice Scalia notes that “[t]he object of §203(o) is to permit

collective bargaining over the compensability of clothes-changing time and to promote the

predictability achieved through mutually beneficial negotiation.”29 That sentiment may not seem

24 See 133 S.Ct. 1240 (2013) (granting certiorari only on the first question presented bypetitioners).25See Richard L. Alfred, The Wage And Hour Litigation Epidemic Continues, Seyfarth ShawWage & Hour Litigation Blog, http://www.wagehourlitigation.com/dol-compliancerule-making/the-wage-and-hour-litigation-epidemic-continues/ (May 16, 2014) (explaining trend ofincrease in litigation and linking to http://www.wagehourlitigation.com/files/2014/05/FLSA-Cases-20141.pdf).26 Sandifer, 134 S.Ct. at 875-76; Integrity Staffing, 135 S. Ct. at 516.27 135 S. Ct. at 519.28 134 S.Ct. at 880.29 Id. at 879.

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Page 7

surprising in a case that centers on a section of the FLSA that relates specifically to collective

bargaining, but it also, somewhat oddly, appears in Integrity Staffing, which did not involve a

unionized workforce. There, Justice Thomas stated:

The fact that an employer could conceivably reduce the time spent by employeeson any preliminary or postliminary activity does not change the nature of theactivity or its relationship to the principal activities that an employee is employedto perform. These arguments are properly presented to the employer at thebargaining table. . . not to a court in an FLSA claim.30

Whatever other effect they may ultimately have, these passages serve to underscore the fact that

the Court seems poised to continue to seek to reduce federal court litigation under the FLSA.

30 135 S. Ct. at 519.

19049026v.1

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Page 88: Keeping up With Wage and Hour Law - Seyfarth Shaw
Page 89: Keeping up With Wage and Hour Law - Seyfarth Shaw

525,600 Minutes of Overtime Consideration

By Seyfarth Shaw LLP on March 13th, 2015

Posted in DOL Enforcement

Authored by Alex Passantino

For twelve months, the employer community has been on the lookout for a regulatory proposal that wouldfundamentally change the application of the most-used exemption from minimum wage and overtime—thePart 541/white-collar exemption. Increased salary obligations, a heightened requirement to establish anexempt employee’s primary rule, and a number of other changes have been rumored.

Today marks the one-year anniversary of the “Part 541 Watch,” a watch that largely has been met withsilence. One year ago today, President Obama signed a Presidential Memorandum directing the Secretary ofLabor to “restore the common sense principles” related to overtime. Still, we have no proposed regulations.

The Regulatory Process and Anticipated Categories of Change

The President’s specific directive to the Secretary was to consider how the regulations could be revised toupdate existing protections in keeping with the intention of the FLSA; address the changing nature of theAmerican workplace; and simplify the overtime rules to make them easier for both workers and businessesto understand and apply.

To that end, in May 2014, in the Regulatory Agenda (pp. 56-57), the Department announced a target date ofNovember 2014 for publication of a proposed rule on revisions to the Part 541 regulations. In the monthsthat followed, the Department engaged in a series of “listening sessions” with the regulatedcommunity—both employers and employees—during which the Department solicited input and ideas.During those meetings, the Department was focused on the requisite salary level and changes to the primaryduty test. Based on all of the available information, it appears that the Department is considering:

• an increase to the current salary level of $23,660 per year, with internal and external sourcesadvocating for a new salary level ranging from $42,000 to $69,000 per year;

• an adjustment to the primary duty test, presumably to implement a California-style hard 50%limitation on work deemed non-exempt, although a different—and more workable—standard (e.g.,30%, 40%) is certainly possible; and

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• other changes to the duties tests, such as limitation or elimination on the ability of managers to engagein management and non-exempt work concurrently or the re-introduction of the requirement that anadministrative employee’s work be related to management “policies.

Following the meetings, the Department did not meet its November target date. Instead, the Departmentidentified a new target date of February (p. 55). The Department missed this as well, and there has been noexplanation for the delay. In fact, as of this post, the proposed rule has not yet even been submitted to theOffice of Management and Budget, which can sometimes take months to review a rule.

What Potential Regulatory Revisions Might Mean for Employers

Salary Test

Some estimates indicate that a salary increase to $50,400 per year would impact 5-10 million workers, manyof whom are concentrated in the retail and hospitality industries. Of course, the impact of a salary increasewould depend upon the exact size of the increase. It would, however, almost certainly have a larger impactin Southern states and rural areas than it would in the Northeast and metropolitan areas.

Notably, a sizeable increase in the salary level would (without a revision that would allow a pro rata salary)make it difficult to maintain part-time exempt positions. Under the current salary requirement, a part-time,pro-rated salary is sufficient to establish the exemption (provided that the pro-rated amount exceeds $455 perweek). Effective elimination of part-time exempt employees would impact many flexible workplacearrangements. If their pro-rated salary was not in excess of whatever the new salary amount is, theywould—at a bare minimum—need to meticulously record their working hours, even if they neverapproached 40 hours, because the FLSA’s “hours worked” recordkeeping obligations apply to all non-exempt employees.

Primary Duty Test

To the extent that the Department makes significant changes to the primary duty test, those changes mighteliminate (or substantially reduce) a manager’s ability to engage in “line work” and managementconcurrently. This could mean the loss of the exemption for some front-line managers, particularly insmaller establishments. For example, each time that a manager—even one who was unquestionably “incharge” of the establishment—checked a customer in or out, or wiped down a table in a restaurant, or took areservation over the phone, her employer would need to track that time to ensure that it did not exceedwhatever limitation the Department’s revisions would require. Alternatively, the employer could simplydecide in advance that the employee would be non-exempt, which could involve a significant culturalchange for a company.

In addition to the obvious issues, the proposed changes could limit opportunities for exempt employees toengage in non-exempt work for training purposes (both to show hourly employees how to perform the workand to better understand how to perform the work to improve supervision), as well as to address “all-hands-on-deck” situations. Should the Department eliminate the ability to engage in concurrent supervision, itpotentially could limit application of many exemptions to corporate office employees and managers of largefacilities.

Other revisions that might be under consideration would impact the application of the administrative orprofessional exemptions. For example, if the Administration added the requirement that certain positionsmust be involved in work related to management “policies,” (instead of the current “work directly related tomanagement of general business operations), it would dramatically limit the ability to claim theadministrative exemption.

Clearly, the revisions that might be included in the proposal have the potential to make a significant impacton an employer’s operations. The specifics of the proposal—as well as its potential impact on the nation’s

Page 2 of 3525,600 Minutes of Overtime Consideration | Wage & Hour Litigation Blog

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economy—still appear to be under consideration at the Department. Along with the substantive proposedrevisions, the Department will have to prepare an economic analysis showing the cost of the new proposal.In addition, the law requires a Regulatory Flexibility analysis requiring the agency to show the impact onsmall business and justify any increase in small business burden. Once the Department decides, theproposed regulations will be sent to OMB, and, ultimately, published in the Federal Register for comment bythe regulated community. Only after that notice, comment, consideration—and, presumably, another longdebate surrounding the salary level—will any changes become applicable to the U.S. workforce. It can beexpected that any dramatic change will generate Congressional hearings and attempts to use theappropriations process to stop the changes or even an attempt to use the Congressional Review Act to try tostop the revisions.

Employers should use this “down time” to consider the impacts these proposal might have on theiroperations—and their bottom line. A robust regulatory record will allow the Department to best analyze theimpacts its proposal will have on the economy. Of course, considered economic input will be helpful to anylegal challenges if the Department chooses to ignore the costs or significantly understates them in theregulatory process. And, with only a couple of months to create that record once the proposal is made,employers need to be thinking about these issues well in advance.

In the meantime, we will keep you updated on further developments as they arise.

Tags: administrative exemption, executive exemption,exemption, FLSA, overtime, primary duty, salary basis, white collar exemption

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