Freixa v. Prestige Cruise Services, LLC

Plaintiff filed suit against his former employer, Prestige, for overtime pay under the Fair Labor Standards Act (FLSA), 29 U.S.C. 207(a)(1). The parties agreed that plaintiff worked an average of sixty hours per week during his employment, but they disagreed about the number of hours he worked in any individual week. The court concluded that the district court erred when it allocated commissions earned in one month across weeks worked in other months. The court explained that each commission payment that plaintiff received reflected "commissions that were earned" within a single month. Under 29 C.F.R. 778.120, the district court could allocate commissions earned in January, for example, across weeks worked in January, but not across weeks worked from February through December. Because the district court may allocate commissions across only the weeks in the period (in this case, the month) in which the commissions were earned, the court concluded that this case presented a genuine dispute about a material fact. Accordingly, the court reversed and remanded. View "Freixa v. Prestige Cruise Services, LLC" on Justia Law