Chinese Daily News overtime suit loses its class action certification
In March 2004, three employees of the Chinese Daily News filed suit against the news outlet in California, alleging that they were forced to work more than 8 hours a day and 40 hours per week but were not given any overtime payment for that time and attendance. After being declared a class action suit and making it all the way up to the Supreme Court, the case returned to the U.S. Court of Appeals for the Ninth Circuit, which ultimately vacated its class certification this March, according to HR.BLR.com.
Class certification depends upon meeting the prerequisites laid out in the Federal Rule of Civil Procedure 23(a). When a suit against an employer becomes a class action, it is bad news for that defendant because instead of owing wages to just one worker, it could now owe wages to 50 or more. It is important then for employers to be familiar with their employee wage obligations in order to avoid such issues.
As reported by HR.BLR.com, the courts found that the CDN employees should have been paid overtime because they did not qualify for the FLSA's creative professional exemption. Like all exemptions, this one has its conditions, so employers should consult the FLSA before proceeding.
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