Case Study: Dismissal of $1 Million FLSA Claims Against Contractor

Background

A Queens contractor performing major work for a large Manhattan investment bank became embroiled in a class action under the Fair Labor Standards Act for over $1 million in unpaid overtime. The plaintiffs claimed to have worked many hours offsite at the bank without consideration of their actual work hours.

The Challenge

The workers elected to bring a class action in the United States District Court for the Southern District of New York. We were retained to vigorously defend the contractor and to collaborate with the bank and other contractors. All seemed to recognize that the workers were well paid professionals who were exempt from certain provisions of FLSA.

The Solution

Evaluating the then-present state of the law, we counseled that the contractor would have little exposure for the claims. Ultimately, the bank decided to pay a small sum in settlement and our client was not asked for a contribution.

The Result

With the dismissal of the case the contractor has continued its operations unabated with a solid and well paid professional work force.