Racing Officials Not Exempt From Overtime Requirement

Racing officials, a placing judge, a paddock judge, a horse identifier, and a clerk of scales, are not exempt from the overtime compensation requirements of the Fair Labor Standards Act (FLSA) the Fourth Circuit has ruled in Desmond v. PNGI Charles Town Gaming, No. 08-1216 (April 30, 2009). The Court reversed a district judgment and ruled that the racing officials’ positions did not fall under the administrative exemption to the FLSA.

The plaintiffs worked as racing officials at the Charles Town race course in the positions of placing judge, paddock judge, horse identifier, and clerk of scales during horse racing at that facility. They filed suit under the FLSA seeking overtime compensation, because they regularly worked more than 40 hours per week.

The issue was whether the racing officials’ positions fell under the administrative exemption to the overtime requirement. The administrative exemption has three components: (1) the employee must be compensated at a salary rate of not less than $455 per week; (2) the employee’s primary duty must consist of the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers; and (3) the employee’s primary duty must include the exercise of discretion and independent judgment with respect to matters of significance.

The court ruled that the racing officials’ jobs were not directly related to the general business operations of the race course. The court noted that the racing officials have no supervisory responsibility and do not develop, review, evaluate, or recommend business policies or strategy with regard to the horse races put on by their employer. While acknowledging that the racing officials’ jobs were important to the operation of the racing business and indeed that state law required the positions to exist, the court concluded that the positions “are unrelated to management or the general business functions of the company.”

 The court also analogized the racing officials’ work to those of a manufacturing production employee, stating that the position of racing official consists of “the day-to-day caring out of [Charles Town Gaming’s] affairs to the public, a production-side role.” Therefore, the court ruled that the racing officials’ position does not satisfy the requirements for the administrative exemption under the FLSA.

Robert L. Abell
www.RobertAbellLaw.com

Nurses File Class Action Lawsuit Seeking Pay for Missed Meal Breaks and Work During Meal Breaks

Nurses have filed a class action lawsuit against the Pittsburgh Mercy Health System claiming that they were not paid when they worked through their meal break or worked during their meal break, according to a report in the Pittsburgh Post-Gazette , “Nurses File Lawsuit Against Mercy Health System.”  The nurses claim that they are allotted 30 minutes each shift for a meal break but either are unable to take a meal break or are compelled to work through much of it. They also claim that they were not paid for certain training time. 

The suit appears similar to one filed last November against 2 Syracuse, New York area hospitals as reported in the Kentucky Employment Law Blog, “Interrupted Lunch Breaks Cited In Wage Class Actions.”

Employers are not required to pay employees for their meal breaks. Employers are required to pay employees for the time they work. If an employee works through his or her lunch break, they are supposed to be paid. Also, if an employee’s lunch break is interrupted by work duties, the employee must be paid according to the U.S. Department of Labor. 

Robert L. Abell
www.RobertAbellLaw.com