New Case Offers Guidance on Good Faith Defense for Failure to Pay Overtime Under 50% Sales Exemption, As Applied to Auto Mechanics


The New Jersey Appellate Division has rendered an opinion in an area with few precedents to guide employers—how to apply the “good faith defense” in the context of an overtime claim by an auto mechanic where the employer had received a green light for its practices by two NJ Department of Labor (“DOL”) investigators in several prior audits. A failure to pay $9400 in overtime mushroomed to a total liability of $85,733.56 for the employer (excluding the additional substantial costs of defending the action, and attorneys’ fees and costs on appeal).

LOADING PDF: If there are any problems, click here to download the file.

Published In: Civil Remedies Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Kevin O'Connor, Peckar & Abramson, P.C. | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »