The Perils of FLSA Misclassification and Limited Role of the Good Faith Defense

more+
less-

In the absence of clear, direct guidance on whether a certain class of employee falls within an exemption to overtime laws, an employer takes a leap of faith in deciding to forego payment of overtime without seeking written clarification. The New Jersey Appellate Division has rendered an opinion in an area with sparse 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’s practices had been reviewed during two separate New Jersey Department of Labor (“DOL”) audits. A failure to pay $9400 in overtime mushroomed to a total liability of $85,733.56 for the employer where the Appellate Division ruled that the employer could not point to the actions or statements of the DOL auditors as a bar to liability under the “good faith defense” set forth in N.J.S.A. § 34:11-56a25.2.

Reprinted with permission, copyrighted NJLJ, 12/17/12

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

Published In: Civil Procedure 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 »