Jones v. Producers Service Corp., No. 23-3247 (6th Cir. 2024)
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This case concerns a dispute involving the Producers Service Corporation (PSC), an oilfield services company, and several of its current and former employees. The employees alleged that PSC failed to pay them a lawful overtime premium for all hours worked over forty per week. PSC argued that it paid its employees in accordance with a Belo plan, a statutory exception to the Fair Labor Standards Act (FLSA) that allows employers to pay a fixed salary to employees who work fluctuating hours. The district court found that PSC could not establish one of the prerequisites to a valid Belo plan because its employees worked irregular schedules not by necessity, but due to factors within PSC’s control, and therefore granted summary judgment in favor of the employees.
On appeal, the United States Court of Appeals for the Sixth Circuit reversed the district court's decision, holding that PSC presented evidence creating a genuine dispute of fact as to the reason behind the employees' irregular schedules. Not all irregular schedules were due to scheduled time off, and PSC provided a plausible explanation for the weeks that employees worked fewer than forty hours despite taking no time off: swings in demand for its services. As such, the matter was remanded back to the district court for further proceedings.
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