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5th Circuit adds confusion to OT in misclassification cases

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in Human Resources,Overtime Labor Laws

by Christopher E. Moore and Lindsey M. Johnson, Esqs., Ogletree Deakins

It just got more complicated to calculate the overtime pay you owe a misclassified employee. In Black v. SettlePou P.C., the 5th Circuit Court of Appeals overturned a district court’s ruling concerning the proper methodology for calculating damages when an employee is misclassified as exempt.

In so doing, the appeals court departed from what was considered to be settled precedent—its own opinion in Ransom v. Patel Enter­­prises. The ink had barely dried on that decision, which was signed just 56 days earlier.

OT calculation method disputed

Betty was a nonexempt paralegal at the Dallas law firm of SettlePou, P.C. In 2007, Betty began supervising one of the firm’s legal secretaries and was reclassified as exempt. After Betty was terminated in 2010, she filed a collective-action suit alleging SettlePou misclassified her and other similarly situated paralega...(register to read more)

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