CHICAGO, IL — A federal Appeals Court in Chicago recently handed down a significant ruling that will allow a class action unpaid overtime lawsuit to proceed against Jimmy John’s sandwich company and its franchise owners. Assistant managers for the company in Illinois and Ohio filed their claim over allegations the company and its individual franchises improperly classified them as overtime exempt workers despite performing none of the duties necessary to warrant such a designation.
In its decision, the 7th Circuit Court of Appeals reversed an order by a lower District Court that barred the plaintiffs from suing both their franchise owners and Jimmy John’s corporate entities as joint employers. The Appeals Court panel determined that the lower court judge overstepped her powers when she blocked the plaintiffs from naming both the franchises and Jimmy John’s as defendants.
According to the class action unpaid overtime lawsuit, filed in U.S. District Court for the District of Northern Illinois, Jimmy John’s and its franchises improperly classified its assistant managers as overtime exempt and owe back pay for working above the 40-hour overtime threshold. The plaintiffs brought their claim under the Fair Labor Standards Act (FLSA), which sets national standards for minimum wage and overtime wages, among other provisions.
FLSA Manager Overtime Pay Laws
Under the FLSA, only certain types of workers can be classified as overtime exempt and paid a flat salary with no overtime wages. However, the law expects these individuals to perform certain duties vital to the company’s operations and these workers generally cannot perform the same duties as hourly non-exempt workers.
Often times, companies give workers the title of “manager” or “supervisor” in name only and do not expect these employees to do more than their peers. Types of job functions that overtime exempt managers are expected to perform under the FLSA include hiring and firing workers, setting pay rates, and creating work schedules for subordinate workers, in addition to supervising operations at the business.
Assistant Manager Unpaid Overtime Lawsuit
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.