Russell Stover's Outdoor Sales Representatives Sue for Employee Misclassification
May 15, 2013
In this week's wage and hour news, employees for the well-known candy company Russell Stover Candies filed a federal lawsuit against the company, accusing the candy maker of employee misclassification and failure to pay overtime compensation.
According to the wage and hour lawsuit, nine workers claim that Russell Stover erroneously classified them as sales representatives, making them exempt from overtime compensation--where their actual responsibilities did not involve sales. The lawsuit claims that most of the candy company's direct sales are preformed by other employees.
The sales representatives claim that the majority of their duties include receiving candy shipments, inspecting them, unpacking, cleaning, stocking, driving to stores, repairing display fixtures and processing credits. One plaintiff who worked for the company from 2005 until 2012 claimed that her duties included manual labor, and that she regularly worked over forty hours in a workweek but was never paid overtime. The company is also being accused of creating an erroneous calculation of hours on the plaintiffs' paychecks, to show that they only worked forty hours, when in reality they worked more overtime hours.
As Vincent Howard frequently reports in Howard Law PC's Huntington Beach employment attorney's blog, the FLSA enforces that most employees are paid with the federal minimum wage, $7.25, for all hours worked, plus overtime payment totaling one and one-half their regular payment rates for all hours worked over forty hours in a week of employment.
The FLSA also provides minimum wage and overtime payment exemptions for outside sales employees. To qualify for an exemption as an outside sales employee, the worker's primary responsibilities must be making sales, or getting orders or work contracts for services for the company, whereupon a consideration will be paid by either the client or customer. This business must be engaged on a regular basis away from the employer's establishment of business.
In Irvine, California contact labor and employment attorney Vincent Howard at Howard Law, PC today.
Russell Stover Candy Company Workers Sue for Overtime, ABC News, May 11, 2013
Related Web Resources:
Fair Labor Standards Act: Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA)
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