Dive Brief:
- A former Paycor employee alleged in a July 19 lawsuit that the HR software company misclassified more than 100 employees as exempt from federal minimum wage and overtime requirements (Terry v. PayCor Inc., No. 1:22-cv-00419 (S.D. Ohio, July 19, 2022).
- The lawsuit sought collective action status and claimed workers in a group of roles — “implementation consultant” and similar positions — were improperly paid as a result of the alleged misclassification. The employees reportedly helped onboard clients, set up their software and provided training on the applications, among other things. This work frequently required more than 40 hours in a workweek, the complaint said.
- While the suit did not offer an exact number of potential plaintiffs, it estimated that more than 100 consultants could be eligible for inclusion in the class, if the suit is certified as such. The complaint requested back pay, interest and damages. Paycor did not respond to a request for comment.
Dive Insight:
The Fair Labor Standards Act requires that employees be paid at least minimum wage for all hours worked — and time-and-one-half for hours worked beyond 40 in a workweek — unless they meet the criteria for an exemption.
The law offers several exemptions, including a professional exemption, an administrative exemption and an executive exemption. A U.S. Department of Labor fact sheet said that to meet the administrative exemption, for example:
- The employee must be paid at least $684 per...
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