Ninth Circuit Court Overtime Pay Decision: Flores v. City of San Gabriel
A decision on the Flores v. The city of San Gabriel case was eagerly awaited. The case had pit police officers against their City employer whom they had sued for three years of overtime that had not been paid and liquidated damages. The charges were made under the Fair Labor Standards Act (FLSA).
The ruling and the implications
The ruling came in on June 2, 2016, four years after the lawsuit was filed; the Ninth Circuit ruled that under the FLSA, such payments have to be included in the regular rate for overtime purposes. This ruling could have far-reaching and significant impact on how agencies pay employees and provide benefits.
If your agency makes payments in cash to employees who opt-out of a health insurance plan, there is a need for the agency to re-evaluate based on the ruling made on the Flores V. City of San Gabriel case. This decision could require that either all plan benefits or cash in lieu amount are factored into the employees’ regular rate of pay to avoid violating the FLSA.
A lot of agencies provide contractual overtime in excess of FLSA minimum overtime requirements like working overtime on a workday rather than working for over 40 hours per week. Keep in mind that including cash in lieu or benefit plans amounts in the regular rate of pay applies only to FLSA overtime hours and not contractual overtime hours. If your employer offers cash-in-lieu, the company may face potential penalties under the Patient Protection and Affordable Care Act.
With the change brought about by the ruling, it is important to ensure that your employer is in compliance with the new ruling. If you are unsure of how this ruling may affect your wages, contact a New Jersey employment lawyer to discuss your employer’s wage policies today!
Schall & Barasch LLC is a New Jersey employment law firm based in Moorestown that has a team of proficient and experienced employees dedicated to standing up for the rights of employees. We offer representation for employees facing wrongful termination, discrimination, non-compete agreements, contract breaches and all other matters related to employee rights.
If you are facing any of these issues and need a New Jersey employment attorney, contact us today and let us help you to resolve them. If you also have questions about how this ruling affects you, get in touch, and we will explain the repercussions to you as well as the changes you should be seeing on your pay slip.
* In every year since 2014, the law firm of Schall & Barasch has been included in the Tier 1 list of best law firms in New Jersey practicing in the field of employment law on behalf of individuals. This list is compiled by U.S. News & World Report. A description of the selection methodology can be found at www.bestlawfirms.usnews.com/methodology.aspx.
** The methodology for the Avvo ratings of Richard Schall and Patricia Barasch can be found at www.avvo.com/support/avvo_rating.
*** In every year since 2009, Richard Schall has been chosen to be included on the list of Best Lawyers in New Jersey practicing in the field of labor and employment law. The Best Lawyers list is issued by Best Lawyers International. A description of the selection methodology can be found at www.bestlawyers.com/about/MethodologyBasic.aspx.
**** In every year since 2005, both Patricia Barasch and Richard Schall have been chosen to be included on the list of Super Lawyers in New Jersey practicing in the field of employment law on behalf of plaintiffs. The Super Lawyers list is issued by Thomson Reuters. A description of the selection methodology can be found at www.superlawyers.com/about/selection_process.html.
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