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April 09, 2013
Did New York hospital owe workers back wages?

A group of workers filed a class action lawsuit against Catholic Health System (CHS) of Long Island claiming employees routinely put in extra hours and worked through breaks without pay. Did the hospital owe them back wages?

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What happened. “Jason” worked for CHS between 22.5 and 30 hours per week as a respiratory therapist. “Amy,” a nurse, usually worked 37.5 hours per week in three shifts, while “Victoria,” also a nurse, usually worked 30 hours per week in four shifts. The three claimed CHS’s timekeeping system automatically deducted breaks from their paychecks, even though their meal breaks were “typically” missed or interrupted.

In addition, Jason said he had to arrive early and stay after his shift to exchange instructions with fellow staff, while Amy and Victoria claimed they spent 15 to 30 minutes before their shifts preparing their assignments.

Meanwhile, the nurses attended mandatory 30-minute staff meetings each month, while Jason estimated that he spent 10 hours per year in specialized training. They sought pay for unpaid overtime under the federal Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL).

Despite direct requests from the district court for “more factual detail” regarding the plaintiffs’ schedules and alleged unpaid hours, the workers failed to submit sufficient evidence to establish an FLSA claim. In addition, the court noted that the FLSA requires only payment of minimum wages and overtime wages, not wages for “gap-time” hours that fall under the 40-hour threshold. Their case was dismissed, and the workers appealed.

What the court said. The Second Circuit Court of Appeals, which covers Connecticut, New York, and Vermont, affirmed that the workers failed to submit “sufficient factual matter to state a plausible claim.” The court noted that Amy, who worked the most hours of any of the plaintiffs, “has not alleged that she ever completely missed all three meal breaks in a week, or that she also worked a full 15 minutes of uncompensated time around every shift; but even if she did, she would have alleged a total 39 hours and 45 minutes worked.”

The court affirmed that “[s]o long as an employee is being paid the minimum wage or more, FLSA does not provide recourse for unpaid hours below the 40-hour threshold, even if the employee also works overtime hours the same week.”

Because the NYLL does recognize gap-time claims, however, the circuit court remanded the case only “in that narrow respect” back to district court. Lundy v. Catholic Health System of Long Island Inc., 2nd Cir., No. 12-1453 (3/1/2013).

Point to remember. Work performed during meal breaks or before and after shifts may be compensable under the FLSA if it exceeds 40 hours per week.

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