Chevalier v. General Nutrition Centers (majority)
Annotate this CaseIn September 2013, Tawny Chevalier filed a class action complaint against General Nutrition Centers, Inc., a Delaware corporation, and General Nutrition Corporation, a Pennsylvania corporation (collectively GNC). The case involved the calculation of overtime compensation for non-exempt salaried workers under the Pennsylvania Minimum Wage Act of 1968 (PMWA), and the related regulations adopted by the Pennsylvania Department of Labor and Industry (Pennsylvania Regulations). Specifically, the Pennsylvania Supreme Court addressed whether these statutory and regulatory provisions allowed for the usage of the Fluctuating Work Week method (FWW Method) for calculating overtime compensation for salaried employees working fluctuating hours. As explained in detail below, we affirm the Superior Court’s decision rejecting the use of the FWW Method under the PMWA and the Pennsylvania Regulations, which were distinguishable from the federal Fair Labor Standards Act (FLSA), which overtly adopted the FWW Method for salaried employees working fluctuating hours. Chevalier had previously been employed by GNC as a store manager and senior store manager, earning a set weekly salary plus commissions, regardless of the number of hours she worked in a given week. GNC additionally paid her overtime for any hours worked in excess of forty hours in a week by utilizing the FWW Method explained below. Essentially, Chevalier argued that the FWW Method did not satisfy the PMWA’s requirement that employees “shall be paid for overtime not less than one and one-half times the employe[e]'s regular rate.” The Supreme Court affirmed the Superior Court’s decision to reject GNC’s use of the FWW Method for calculating Plaintiffs’ overtime compensation to the extent it used a 0.5 multiplier.
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