Gym employees denied nationwide collective certification in FLSA lawsuit
Workers at a fitness company in southern Texas sued their employer, claiming they were not paid overtime for work that took place off the clock. The sales managers alleged they worked 50 to 60 hours a week, but were only paid for 40. The gym's policy was that workers not exceed 40 hours in a week, however general managers often required other employees to falsify their time records and continue working after clocking out, which is in direct violation of the Fair Labor Standards Act.
The employees also claimed the company failed to include commission and bonuses in regular rates of pay when calculating overtime compensation.
The workers sought nationwide class certification for the trial, on behalf of 800 fitness consultants and 120 sales managers. However, the District Court determined that the plaintiffs could only be certified on a regional basis because they lacked factual evidence of a nation-wide policy requiring off-the-clock work.
According to Jackson Lewis, LLP, the court's ruling can be considered a partial victory for the gym company, which will not have to deal with the negative exposure of an FLSA-related lawsuit on a national level.
Lawsuits can be difficult to avoid, but having detailed records of employee time can help make the legal process run more smoothly. Using attendance software to track employee time is vital in preventing lawsuits as well as dealing with them when they do occur.
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