A mortgage underwriter in New Jersey is being allowed to continue a time and attendance lawsuit for unpaid overtime in a case with very unique circumstances. According to Mondaq, the employee filed suit in 2011 alleging the mortgage company she worked for purposely put her under a status that was exempt from overtime payments in accordance with Fair Labor Standards Act.
According to FLSA guidelines, some job functions make an employee exempt from being paid overtime for work performed in excess of the standard 40 hours. In addition to certain salary thresholds, other stipulations related to job duties must also be met in order to classify an employee as exempt from overtime pay.
In this case, the former employee was asked to apply to a sister company of the firm she was working for without any additional changes being made to her job duties, pay rate or even her immediate supervisors. After leaving the company, the worker filed the FLSA lawsuit, which was initially dismissed because the violations never occurred at the parent company.
However, earlier this month a federal judge ruled the parent organization should be held responsible for the employee time violations under FLSA stipulations and allowed the case to move forward.
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