Perry v. Randstad General Partner LLC, No. 16-1010 (6th Cir. 2017)Annotate this Case
Randstad recruits temporary workers for clients. Plaintiffs, in-house Randstad employees (not temporary workers), engaged in marketing Randstad’s services; recruiting, evaluating, and placing workers; and administrative and clerical tasks. Randstad tracked Plaintiffs’ performance using a points-based system. Plaintiffs were required to accrue 100 points each week, across certain categories, such as sales and recruiting. Randstad maintained a progressive discipline system for employees who did not meet the weekly quota, with penalties including termination. Randstad also held periodic “contests,” which required employees to perform tasks beyond the employee’s regular duties. According to Plaintiffs, the quotas were impossible to meet working only 40 hours per week, so Plaintiffs regularly worked more than 40 hours per week, and Randstad managers were aware they did so. In Plaintiffs’ Fair Labour Standards Act action, the district court granted Randstad summary judgment, finding that certain named Plaintiffs exercised discretion and independent judgment and were covered by the administrative exemption and that Randstad was insulated from liability because it relied, reasonably and in good faith, on a Department of Labor Wage and Hour Division (WHD) opinion letter. The Sixth Circuit reversed in part, finding that two named plaintiffs were not covered by the exemption and that, a minimum, there is a factual question whether Randstad reasonably relied on the WHD Letter to classify Plaintiffs as FLSA-exempt without reviewing their individual duties, or at least the duties of employees in the Troy, Michigan office or the region.