Overdue Overtime -- The FLSA Problem for Pizza Hut
After CKE Enterprises, Inc., the parent of Hardee's, Carl's Jr.'s and La Salsa, agreed to settle its employment class action last week (see blog entry of
August 9),
Pizza Hut receives word that Judge Terence Hatter in the Central District of California will allow a $300 million class action to proceed on the same grounds, i.e., that the franchisor failed to pay restaurant managers overtime pay. Both CKE and Pizza Hut claimed that managers are exempt under the Fair Labor Standards Act; however, lawyers for the class contend that Pizza Hut managers do not qualify as exempt because 90% of their job functions were non-managerial in nature. Judge Hatter recently granted the plaintiffs'
motion for summary judgment, finding that Pizza Hut misclassified plaintiff as exempt under the FLSA. Here's an
interesting editorial on workindex.com on FLSA and navigating the FLSA's definitions of exempt and non-exempt employees.
Posted by franchiselawblog at August 17, 2004 04:28 PM