A federal appeals court just ruled that paid time off (PTO) is not a part of an employee’s salary under federal wage and hour law, shutting down an inventive attempt by plaintiffs’ attorneys to find a new way to assert wage and hour claims against employers. The Third Circuit Court of Appeals’ March 15 decision in Higgins v. Bayada Home Health Care Inc. handed a win to employers by giving the go-ahead under federal law to deduct fringe benefits from exempt employees if they fail to meet productivity quotas – as long as the deductions do not affect their guaranteed base salary. The appeals court correctly found that an employee’s base salary is distinguishable from PTO – a fringe benefit – allowing employers to deduct from such fringe benefits under federal law without affecting employees’ overtime-exempt statuses. Although the outcome is good for employers, especially those in New Jersey, Pennsylvania, and Delaware, the fact that the case was filed at all is a good reminder that plaintiffs’ attorneys are looking for any wage hour vulnerability they can exploit through litigation.
Company Productivity Point System Leads to Dispute
Stephanie Higgins is a registered nurse and former employee of Bayada Home Healthcare, a New Jersey-based company that provides medical and related support services for patients in their homes in 23 different states. Bayada classified Higgins and other employees like her as overtime exempt employees under the federal Fair Labor Standards Act...
The Dangote Group has dismissed as false and malicious claims of a rift between its President, Aliko Dangote, and the Chairman of Heirs Holdings, Tony Elumelu, and also rejected allegations that h...