In Integrity Staffing Solutions v. Busk, the United States Supreme Court heard oral argument recently in a class action case regarding whether employees assigned by their employer to work at an Amazon warehouse must be compensated for time spent undergoing security checks at the end of their shift and after the employees clocked out for the day. The purpose of the security checks were to ensure that employees did not steal items and were alleged to take between five and twenty-five minutes. The legal challenge involves whether the federal Portal-to-Portal Act requires that the time be compensable for purposes of paying hourly wages and counting hours worked for overtime purposes. Generally, such post-shift activities is only compensable if it is “integral and indispensable” to an employee’s job. The trial court initially ruled in favor of the employer holding that the time spent waiting in line and undergoing security checks was not compensable. On appeal, the United States Court of Appeals for the Ninth Circuit reversed the trial court and held that the security checks were primarily for the employer’s benefit and thus related to the employees’ jobs. The employer then appealed to the United States Supreme Court. Although the United States Supreme Court is not expected to decide the case until next year, this case highlights the changing nature of wage and hour claims. Wage and hour lawsuits are increasingly being filed seeking compensation for activities outside an employee’s normal work day that involve only a matter of minutes, such as travel time, pre-shift or post-shift activities, changing clothes or uniforms, and waiting time. These cases are ripe for class actions and are costly to defend. Employers should audit their pay practices to ensure periods of time that are currently being excluded from "working time" are not susceptible to being found to be "primarily for the employer's benefit" and, thus, compensable.
