New Orleans Hornets Alleged to Have Violated Fair Labor Standards Act

This past Friday, eight former Hornets' employees filed a lawsuit in the U.S. District Court in New Orleans, alleging that the team required them to work more than 40 hours per week but did not pay overtime. The lawsuit also alleges that those employees who failed to work more than 40 hours per week were penalized and threatened with discharge.

As a matter of background, employees paid on an hourly basis are always protected by the overtime provisions of the Fair Labor Standards Act ("FLSA"), while salaried and contracted employees are often not. This distinction is based on the premise that while hourly employees are paid to work a specific number of hours, those on salaries and contracts are typically paid to complete a task or set of tasks, regardless of how long it takes. If you are interested in reading more on the FLSA, check out this useful reference guide published by the U.S. Department of Labor.

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