BusinessBrief.com » Another example of why it’s a good time to check OT classifications

Another example of why it’s a good time to check OT classifications

March 24, 2010 by Tim Gould
Posted in: In this week's e-newsletter, Latest News & Views, Legal & Compliance


No question about it — both  the feds and the courts are focusing on organizations that misclassify employees as exempt from overtime. Latest example: The case of two employees of the Port Authority of New York and New Jersey.

The crux of the matter: the Port Authority classified helicopter pilots as “learned professional” employees under the Fair Labor Standards Act (FLSA).

Two pilots challenged that classification, and claimed they were owed three years’ worth of overtime pay.

The court noted the “learned professional” exemption covers employees who have knowledge “acquired by a prolonged course of specialized intellectual instruction … as distinguished from … training in routine mental, manual or physical processes.”

Not a good fit

The pilots didn’t fit the criteria, the court ruled. While they did have “specialized knowledge,” it wasn’t acquired via “intellectual instruction” – it was largely based on physical training and experience.

The employer was ordered to pay more than $150,000 to the two pilots.

The takeaway: It’s a good time to recheck employee FLSA classifications. The courts are starting to interpret the rules very narrowly.

Cite: Pignataro v. Port Authority of N.Y. and N.J.

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One Response to “Another example of why it’s a good time to check OT classifications”

  1. porterdude Says:

    Does this law make sense to anybody? Did I really spend a small fortune and four years of my life on college so that employers could exploit me? Somebody please explain the logic here.

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