CVS Caremark Fails to Get Unpaid Overtime Lawsuit Dismissed

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One of CVS Health’s units, Caremark, is the latest company to face charges alleging unpaid overtime and Fair Labor Standards Act (FLSA) violations.

According to the FLSA, hourly employees (non-exempt) are entitled to overtime once they pass eight hours a day, or 40 hours a week. Plaintiff Christine Villareal alleges that Caremark “willfully violated the FLSA.”

Villareal is an employee of Caremark in Scottsdale, Ariz. According to her claim, CVS Caremark broke FLSA laws in how it classified its employees and its record keeping. CVS asked the court to toss the unpaid overtime lawsuit for both counts, but U.S. District Judge Diane J. Humetewa didn’t agree. She did dismiss the alleged FLSA recordkeeping claim, but allowed the overtime claim to move forward.

According to Villareal, prior to the end of 2013, Caremark had variously referred to her position as a “Client Benefits Analyst” and “Benefits Specialist,” with a specific set of job responsibilities, including processing insurance claims. At the end of 2013, Caremark changed her job title to “Coding Consultant,” with the same responsibilities. These responsibilities allegedly had Villareal working overtime on a regular basis.

“Not only was Caremark ‘aware of and required this overtime work[]’ while denying Ms. Villarreal overtime compensation, but Caremark had a ‘policy and practice to set project deadlines that required overtime work,'” the FLSA lawsuit says. “During the evenings and on weekends, Caremark also called Ms. Villarreal at home requesting that she continue working to meet its deadlines. Despite being aware of these working conditions, Caremark denied Ms. Villarreal overtime compensation.”

Villareal says that prior to the March 2014 reclassification, Caremark “uniformly misrepresented” to the collective Class Members that they were exempt employees. Villareal was informed that as an exempt employee under the FLSA, she was ineligible for overtime compensation. In actuality, she contends that she and the Class were non-exempt employees. As non-exempt, she argued that they are due overtime pay.

The CVS Caremark Unpaid Overtime Class Action Lawsuit is Christine Villareal v. Caremark LLC, Case No.: CV-14-00652-PHX-DJH in the U.S. District Court for the District of Arizona.

The Wages and Hours Law

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. States also enact their own labor laws. Under California labor laws, hourly employees (non-exempt) are entitled to overtime once they pass 40 hours a week. The overtime wage is 1.5 times their regular rate of pay for all hours worked over eight hours a day. Moreover, California employers are mandated to reimburse employees for business-related expenses, such as training and seminars, and are prohibited from subtracting any necessary business related expenses from the employee’s compensation.

Millions of dollars have been paid out to settle employee lawsuits for violations of these laws in the past several years. Violations include late or missed meal periods, missed rest breaks, unpaid overtime and/or vacation time, and unpaid off-the-clock work.

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.