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Feature Contents
1. Immigration Status Irrelevant in FLSA Case
Employees of a Chicago restaurant filed suit against their employer for overtime pay, but before trial the employees asked the court for an order to bar testimony regarding the employees’ immigration status.
2. Exempt Status, Discipline and Damage Deductions
Employers are cautioned that deductions from the salaries of overtime-exempt employees risk the loss of such exemption, unless expressly authorized by FLSA, its regulations or applicable state law.
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FLSA Does Not Require Pay for College Training
Employers are advised to review FLSA regulations with regard to whether time spent to complete job-related education constitutes hours worked for which pay is required.
By James E. Hall, Mark T. Kobata and Marty Denis
 n February 2004, Paul Loodeen applied for a paid internship position with Consumers
Energy, and agreed to complete requirements for a "customer energy specialist" educational
certificate within two years of hire. Following his hire, Loodeen began taking the
required courses for the certificate at a community college, and Consumers Energy
reimbursed him for tuition.
Loodeen filed a Fair Labor Standards Act lawsuit in the U.S.
District Court for the Western District of Michigan, seeking $7,000 in back pay
for class, homework and travel time he spent taking the required courses for the
certificate. The district court dismissed the lawsuit in favor of Consumers Energy.
According to the court, the FLSA did not require compensation
because courses taken by Loodeen were not "integral and indispensable" to the performance
of his principal activities. It found that U.S. Department of Labor regulations,
which provide that an employee’s attendance at "lectures, meetings, training programs
and similar activities" do not constitute compensable time under the FLSA if voluntary
and outside of regular working hours. Loodeen’s courses were "regular college classes
taken apart from plaintiff’s employment, as part of a multi-year attempt to qualify
for a new position with the company," not mandatory continuing education or recertification.
Loodeen v. Consumers Energy Co., W.D. Mich., No. 1:06-cv-848 (3/14/08).
Impact: Employers are advised to review FLSA regulations with
regard to whether time spent to complete job-related education constitutes hours
worked for which pay is required.
James E. Hall, Mark T. Kobata and Marty Denis are partners with the law firm of
Barlow, Kobata and Denis, with offices in Los Angeles and Chicago. E-mail editors@workforce.com to comment.
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