Monthly Archives: August 2010

Not Breaking News: Paralegals Are Entitled to Overtime Compensation

August 24th, 2010

It is amazing how law firms are sometimes the most blatant violators of the law. One of the biggest employment related issues for law firms is the compensation for legal secretaries and paralegals. For whatever reason, many lawyers pay their paralegals a salary without additional overtime compensation. As a general rule, this is illegal.
Legal secretaries and paralegals are almost never “exempt” from the overtime provisions of the Fair Labor Standards Act. If you are paid hourly, you are never exempt as a matter of law. If you are paid on a “salary,” you are probably being paid improperly and may due thousands of dollars in unpaid wages and overtime.
Time spent checking your blackberry or your work email outside the offce on nights and weekends is “work” that needs to be compensated and taking documents or files home also constitutes “work” that needs to be compensated.
For employers, the key to remember is that the owners of the law firm (meaning the lawyers) are personally liable. There is not corporate shield for violations of the FLSA.
Sarelson Law Firm has represented paralegals and secretaries in disputes with law firms, and we have represented law firms with respect to FLSA compliance. One pending lawsuit — the Firm has no involvement in this action — by a paralegal against a law firm is identified here.

What the Eleventh Circuit Giveth, the Eleventh Circuit Taketh

August 18th, 2010

roastchicken.jpgThe blog takes great pride in being as neutral as possible on legal issues and court opinions – Sarelson Law Firm (unlike most employment law firms) represents both employees and employers in employment disputes and avoids ideological based representation. But the Eleventh Circuit issued an unpublished opinion yesterday that really bothers me. The case is Ash v. Tyson Foods, and the blog has previously discussed the case the last time the Eleventh Circuit issued an opinion in the case.
The case is a race discrimination case under 42 U.S.C. s. 1981. In the original trial, the jury returned a verdict in favor of the employee and awarded both compensatory and punitive damages. The trial judge granted the employer’s motion for a directed verdict – i.e., the judge overruled the jury’s decision and entered a verdict fo the employer. The employee, who won (at least according to the jury), successfully appealed to the Eleventh Circuit and the Eleventh Circuit correctly ruled that there was evidence to support the jury verdict, and thus the trial judge was wrong to overrule the jury.
Despite this initial ruling, the Eleventh Circuit also affirmed the trial judge to the extent there was insufficient evidence to support the award of punitive damages.
When the case was remanded to the trial judge, the case was retried on both liability and damages. (Frankly the blog is confused as to why there was even a retrial — the jury’s original verdict should have been reinstated and a trial on punitive damages, if warranted and wanted by the plaintiff, should have been approriate).
At the second trial, a different jury again found in favor of the plaintiff and again awarded substantial compensatory and punitive damages. The employer made the same motion to the judge to have the judge overrule the jury’s verdict. This time the trial judge — no doubt taking his cue from being reversed by the Eleventh Circuit the last time – denied the motion and entered judgment in favor of the plaintiff.
Plaintiff won two jury trials and the first ruling on liability was already affirmed by the Eleventh Circuit. Case closed, right? Nope.
This time the employer again appealed making the exact same argument to the appellate court that was rejected the first time – namely, the failure of any evidence to support the jury’s finding in favor of the employee.
As luck would have it, this time the Eleventh Circuit agreed with the employer, and again reversed the trial judge but in the exact opposite direction. Poor trial judge. The first time he ruled for the employer and was reversed. The second time he ruled for the employee on the exact same legal issue and the court of appeals reversed him again this time in favor of the employer.
The decision, despite being fairly lengthly, detailed and controversial, was “unpublished” by the Eleventh Circuit. This means the court does not want its own opinion to be binding in future cases. The case was also issued “per curiam,” which means no one judge wishes to have his or her name associated with preparing the opinion. A visiting trial judge sitting by designation wrote a simple but strong dissent that got it exactly right — two different juries found in favor of the employee and awarded compensatory and punitive damages.
Call me old fashioned but I take the Seventh Amendment’s right to a jury trial seriously. The blog hopes the case is reheard en banc and perhaps petitioned to the Supreme Court if necessary.
The case is here:
Ash v. Tyson Foods
After years of fighting, it appears this Tyson’s chicken is fully roasted.

Federal Judge Approves $750 Hourly Rate for Prevailing Employee’s Attorney

August 16th, 2010

Normally plaintiffs’ employment lawyers in Florida will be awarded $350 to $425 an hour (on the high-end) by federal judges after prevailing at trial. A federal judge in Texas awarded a plaintiff’s attorney a whopping $750 per hour. The plaintiff turned down an offer of $40,000, and won a $3.6M jury verdict. Given those numbers — $750/hour seems cheap. Full story is here.