From labor disputes cases to labor and employment publications, for your research, you’ll find solutions on Bloomberg Law®. Protect your clients by developing strategies based on Litigation...
By Porter Wells
A small printing company in Florida isn’t liability for overtime compensation to a former employee because the company’s sales weren’t large enough to be covered by the FLSA, the Eleventh Circuit ruled July 17.
The ruling from the federal appeals court is a reminder that the wage and hour requirements of the Fair Labor Standards Act may not apply to enterprises that rope in less than $500,000 per year in sales or business.
Abalux Inc. submitted records showing it logged annual gross sales in the upper ranges of $400,000 from 2013 to 2016, the years Jesus Collar was an employee. Where Abalux’s sales surpassed $500,000, retail sales tax adjustments brought that number back under the threshold, meaning the FLSA didn’t apply, the U.S. Court of Appeals for the Eleventh Circuit said.
The case also illustrates the pitfalls of pursuing a case too aggressively. Abalux filed seven motions for sanctions in the lower court against Collar’s counsel because they “‘knew or should have known’ that the case ought to be dismissed as meritless,” Leslie Langbein, Abalux’s attorney, told Bloomberg Law in a July 17 email.
The district court issued a sixty-three page order July 5 agreeing that sanctions were warranted because of the “never-give-up strategy of using a full-throttle approach” undertaken by Collar’s legal team, even when it became clear their lawsuit wasn’t supported by the law.
Abalux seeks $40,000 in fees and costs, Langbein said.
Attorneys for Collar didn’t immediately respond to Bloomberg Law’s request for comment.
Langbein & Langbein in Miami Lakes, Fla., represented Abalux. J.H. Zidell, PA, in Miami Beach represented Collar.
The case is Collar v. Abalux, Inc., 11th Cir., No. 18-10676, opinion issued 7/17/18.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)