(855) 263-3525

Amazon Warehouse Employees Lose Overtime Lawsuit

WASHINGTON D.C. — The United States Supreme Court’s recent decision regarding unpaid post-shift anti-theft screening procedures will likely have significant effects on current and future wage and overtime claims. Integrity Staffing Solutions, the employer of the temporary employees working at Amazon warehouse locations, allegedly violated the Fair Labor Standards Act (FLSA) when it required the workers to clock out prior to going through the mandatory anti-theft screening process. The workers claimed as much as 25 minutes each day was spent without pay in the screening process resulting in unpaid wages and overtime.

The Initial Claim

The Amazon warehouse workers filed their class action in 2010. The warehouse workers claimed Integrity required them to clock out then go through post-shift security screening as part of an anti-theft effort. The workers claimed the security screenings were purely for the benefit of the employer and should therefore be included in their hours worked. The District Court did not agree with the warehouse workers and dismissed the class action after finding that the anti-theft screenings were not integral to the workers’ principal activities. The FLSA requires employer to pay employees for time spent on activities “integral and indispensable” to the principal activities the employee was hired to perform. Anti-theft screenings were not an integral part of the workers warehouse activities.

The Appeal

In 2013, the Ninth Circuit Court of Appeals reversed the District Court’s decision. The Appeals Court found that even though post-shift activities, which are not integral and indispensable to a worker’s principal activities, are not compensable, if the post-shift activities are necessary for the principal activities and conducted for the employer’s benefit then compensation is required. In this case, the workers handled the warehouse inventory while collecting, packaging, and preparing Amazon customer orders, therefore preventing the theft of those items benefits the employer.

The Game Changing Decision

After the Court of Appeals’ reversal, Integrity petitioned the Supreme Court. When the Supreme Court agreed to hear the claim, numerous overtime claims related to unpaid post-shift anti-theft screenings were put on hold until after the Court’s decision. The Supreme Court reversed the Court of Appeals’ decision finding the time spent waiting for and undergoing the screenings is not compensable under the FLSA. The Court determined that a compensable activity must be an activity which is “integral and indispensable” to the principal activities the employee is employed to perform. Warehouse employees are not employed to be security screened; they are employed to handle the inventory within the warehouse.

Even though it appears that post-shift screenings are non-compensable, if your employer is denying you compensation for other pre-shift or post-shift activities, you may have a claim for unpaid wages and potentially overtime wages. Our experienced team of overtime pay lawyers can evaluate your situation and discuss your options today at (855) 754-2795. Or you can complete the Free Unpaid Overtime Case Review form and our knowledgeable legal team will assess your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.

Text Now For Free Case Review