Alaska Supreme Court Unanimously Affirms Trial Court Award of Overtime Pay, Prejudgment Interest, Penalties and Attorneys' Fees to Incorrectly Classified Employee

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A recent unanimous Alaska Supreme Court decision, Geneva Woods Pharmacy Inc. v. Thygesen,

Opinion No. 6255 (April 25, 2008), serves as a reminder to employers of the financial risks of

improperly classifying employees as “exempt” from state or federal overtime pay requirements

and of failing to maintain accurate records of hours worked for nonexempt employees. Properly

classifying employees can be especially tricky where, as in Geneva Woods Pharmacy, an

employee is properly classified as exempt under federal law, but is nonexempt under state law.

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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.

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