Newman v. Advanced Tech. Innovation Corp., No. 13-1132 (1st Cir. 2014)
Annotate this CasePlaintiffs found engineering jobs through Advanced Technology Innovation Corporation (“the company”), a recruiting firm. Plaintiffs were paid by the company. In 2012, Plaintiffs filed suit, alleging that the company violated 29 U.S.C. 207(a)(1)-(2) by failing to pay the required overtime rate of at least one-and-a-half times their regular rate of pay. Specifically, Plaintiffs contended that the company wrongly labeled part of their regular hourly wage a “per diem” and excluded the per diem when it calculated the rate for overtime. After examining the company’s formula for calculating the per diem, the district court granted summary judgment in favor of the company. The First Circuit Court of Appeals reversed, holding that the company’s formula was impermissibly based upon and thus varied with the number of hours worked per week, depriving Plaintiffs of overtime pay. Remanded for entry of partial summary judgment in Plaintiffs’ favor as to liability.
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