A New Jersey federal judge approved a settlement in a lawsuit brought by Essex County corrections officers, alleging underpayment of overtime. Davis, et al. v. Essex County, No. 2:14-cv-01122, opinion (D.N.J., Dec. 1, 2015). The plaintiffs asserted causes of action under both the federal Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq.; and the New Jersey Wage and Hour Law (NJWHL), N.J. Rev. Stat. § 34:11-56a et seq. They brought suit on behalf of themselves and other employees with similar claims, as allowed by the FLSA. The parties eventually came to an agreement regarding unpaid wages, liquidated damages, costs, and attorney’s fees. The court reviewed the settlement to ensure that it satisfied the FLSA’s requirements regarding collective actions. It certified a class of plaintiffs and approved a settlement totaling $300,000.
Both the FLSA and the NJWHL require employers to pay overtime compensation to certain employees. This generally applies to hourly workers who do not hold a managerial or executive position. An employer must pay a rate of time-and-a-half for any time worked more than 40 hours during a calendar week. See 29 U.S.C. § 207, N.J. Rev. Stat. § 34:11-56a4. A common example of an overtime claim involves an employer who requires employees to perform certain tasks while they are “off the clock,” such as changing into or out of uniform. Since this task is mandatory, it is legally considered part of the employee’s job. If it pushes the amount of time spent at work over 40 hours in a week, the employee is entitled to overtime pay.
An employee can collect unpaid overtime, court costs, and other damages under the FLSA and the NJWHL. Individual employees may not have a large enough claim for a lawsuit to be feasible, which is where a type of lawsuit known as a collective action comes into play. Much as in a class action, see Fed. R. Civ. P. 23, one or more plaintiffs can sue on behalf of a class of individuals who are in similar situations and have similar legal claims. 29 U.S.C. § 216(b). An employee who might be owed thousands of dollars in overtime pay is more likely to get the employer’s attention if the lawsuit includes hundreds or thousands of their co-workers. Plaintiffs must consent to be part of a collective action under the FLSA, while many class actions require class members to “opt out.”