Perez v. Owl: Eleventh Circuit Rules on Wage and Overtime Disputes

Perez v. Owl, Inc. examined wage classification and overtime claims brought by drivers working under a Department of Veterans Affairs transportation contract. The drivers alleged that their jobs were misclassified under the Service Contract Act, resulting in lower wages than the applicable federal wage determination, and sought additional overtime compensation under the Fair Labor Standards Act.

The Eleventh Circuit upheld dismissal of the breach-of-contract theory because the SCA does not create a private right of action and does not automatically become part of private employment agreements. At the same time, the appellate court reversed the limitation on FLSA overtime damages and held that the lawful regular rate must be used in calculating overtime. The case was remanded for recalculation of overtime damages.

Original article:https://www.whitcomblawpc.com/business-law-blog/perez-v.-owl-eleventh-circuit-rules-on-wage-and-overtime-disputes