Fed Government Must Face FLSA Class Action Lawsuit over Shutdown

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A U.S. federal claims judge has refused to dismiss a class action lawsuit accusing the federal government of failing to pay workers on time during last year’s government shutdown, ruling that plaintiffs sufficiently pleaded that the late payments were a violation of federal wage laws.

When Congress failed to appropriate funds for government work to continue after the end of fiscal year 2013, the federal government experienced a partial shutdown from Oct. 1 through Oct. 16, 2013. The government workers who had to work during the shutdown were not paid on time. Now they are suing the federal government, alleging in a alleging in a class action lawsuit filed on October 24, 2013 that the late payment of their wages is in violation of the Fair Labor Standards Act (FLSA, also referred to as the Wages and Hours Bill).

The five plaintiffs originally named in the wage and hour class action lawsuit were excepted employees within the Department of Justice, working for the Bureau of Prisons at various federal prisons throughout the United States over the course of the government shutdown. Amendments to the wage lawsuit incorporated other excepted government employees in different areas.

Their complaint is that when their scheduled payday arrived, the paychecks reflected payment for work performed only through Monday, Sept. 30, 2013, rather than through Oct. 5, 2013, the full pay period. Moreover, the government did not issue wages until after shutdown had ended and Congress had allocated funds to pay the wage debts. Plaintiffs weren’t paid for the missing days until approximately two weeks after their payday. They also claim, that as FLSA non-exempt employees, they should receive the overtime pay they were not compensated for on time for work performed during the shutdown.

The wage and hour class action lawsuit claims this late payment created hardship, and that they are entitled to statutory liquidated damages. The plaintiffs are seeking damages at the applicable minimum rate wage of $7.25 per hour times the number of hours unpaid, plus their overtime pay.

To date, the Federal Circuit has not addressed the issue of when an FLSA violation occurs. However, looking at past decisions, (Cook v. United States), the Federal Circuit acknowledged the “usual rule . . . that a claim for unpaid overtime under the FLSA accrues at the end of each pay period when it is not paid.” Additionally, the FLSA minimum wage provision requires employers to pay minimum wage “to each of his employees who in any workweek is engaged in commerce.”

The plaintiffs’ third count is pertaining to their request for liquidated damages. Whether liquidated damages are appropriate depends on “whether the defendant can demonstrate good faith and a reasonable basis for believing it was compliant with the FLSA.”

The employees who were required to work during the shutdown included prison guards, border patrols, and federal air marshalls. The defendant claims that the government required plaintiffs to work during the October 2013 shutdown “pursuant to an emergency exception provision of the Anti-Deficiency Act, which states that the “government may not accept voluntary services for either [the United States Government or the District of Columbia] or employ personal services exceeding that authorized by law except for emergencies involving the safety of human life or the protection of property.”” The government says, on this count, they were working in good faith.

Defendants filed a motion to transfer, and a motion to dismiss for failure to state a claim. The court’s decision is that their motion to dismiss for failure to state a claim as to Counts One and Two is denied, but its motion as to Count Three is granted.

The case is Martin, et al. v. United States of America, Case No. 1:13-cv-00834, in the U.S. Court of Federal Claims.

Wage and Labor Laws

The Fair Labor Standards Act states that hourly employees (non-exempt) are entitled to overtime once they pass eight hours a day, or 40 hours a week. A federal statute of the United States, it also enacts regulations on child labor. They are backed by state laws as well. For example, California Labor Laws mandate that California employers track hours, provide rest periods and meal breaks, and reimburse employees for business related expenses. These laws are in place to protect employees.

According to the Department of Labor, there were “40,000 wage-and-hour complaints during fiscal 2010.” Today, wage and hour litigation is one of the fastest growing types of class action. The number of lawsuits has climbed annually, alleging unpaid overtime and misclassification of exempt worker status.

Join a Free Unpaid Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone. See if you qualify to take legal action now.

UPDATE: The government shutdown class action lawsuit has been conditionally certified, and notice about the case reportedly went out to Class Members between March 9 and March 16, 2015. If you were classified as an essential employee during the shutdown, you may be able to join the class action lawsuit and pursue compensation.