Workers who lose overtime cases may have to cover employer's court fees
Workers who sue on the grounds of alleged time and attendance legislation violations are responsible for paying their employer's legal fees if they lose the case, according to a precedent-setting decision by the California Court of Appeal.
Larry Plancich, a supervisor for United Parcel Service, sued the shipper for failure to pay overtime compensation, provide meal and rest breaks and keep accurate records of employee attendance and wage statements, alleging that he was misclassified as an exempt employee.
The Fair Labor Standards Act dictates that workers must be paid at least minimum wage and compensated at a time-and-a-half rate of pay for working more than 40 hours a week. However, some job positions - such as those that are supervisory in nature - are exempt from this.
Plancich lost the case and was excused from covering UPS' court costs and attorney fees by a trial court. However, this decision was later reversed by the court of appeals, and Plancich was held responsible for the company's bill, which was estimated to be more than $38,000.
Although the appellate court noted that the decision of "placing all of the cost risk on the named plaintiffs might have a chilling effect on overtime compensation lawsuits ... the court believed that risk may be outweighed by the potential recovery."
Larry Plancich, a supervisor for United Parcel Service, sued the shipper for failure to pay overtime compensation, provide meal and rest breaks and keep accurate records of employee attendance and wage statements, alleging that he was misclassified as an exempt employee.
The Fair Labor Standards Act dictates that workers must be paid at least minimum wage and compensated at a time-and-a-half rate of pay for working more than 40 hours a week. However, some job positions - such as those that are supervisory in nature - are exempt from this.
Plancich lost the case and was excused from covering UPS' court costs and attorney fees by a trial court. However, this decision was later reversed by the court of appeals, and Plancich was held responsible for the company's bill, which was estimated to be more than $38,000.
Although the appellate court noted that the decision of "placing all of the cost risk on the named plaintiffs might have a chilling effect on overtime compensation lawsuits ... the court believed that risk may be outweighed by the potential recovery."
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