Opinion of the Court — Parks v. Locating, Inc.

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Type: Opinion of the Court
Author: Stephen S. Trott
Filed: June 17, 2002
Case: Parks v. Locating, Inc.
Case status: Decided

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MEMORANDUM * Schylar Parks, individually and on behalf of a class of employees, sued Locating, Inc. for violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq. Locating pays its employees a straight hourly wage with a guaranteed minimum of pay for 40 hours. Parks argues that overtime must be compensated at time and a half, under 29 U.S.C. § 207 (a)(1). Locating asserts its system satisfies the “Fluctuating Workweek” requirements of 29 C.F.R. § 778.114 , such that its payment of a straight hourly wage for overtime is simply a generous overtime premium under that system. Because “all the facts indicate that an employee is being paid for his overtime hours at a rate no greater than that which he receives for nonovertime hours,” 29 C.F.R. § 778.114 (c), we reverse and remand with a direction to enter summary judgment in the employees’ favor on this issue. The undisputed evidence indicates that Locating’s employees were paid a straight hourly wage, not a fixed salary covering all hours worked. Locating’s attempts to re-characterize the scheme as one that satisfied the Fluctuating Workweek are unavailing. An agreement to compensate a minimum of forty hours is not the…

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