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Seyfarth Synopsis:
In Whiteside v. Hover-Davis, Inc., the Second Circuit upheld the dismissal of an FLSA claim because the plaintiff failed to allege facts sufficient to invoke the three-year limitations period for willful violations.
If a plaintiff merely alleges a willful violation of the Fair Labor Standards Act (“FLSA”), without more, will that suffice to invoke the FLSA’s three-year statute of limitations for willful violations? The Second Circuit said “No” when it
recently affirmed a district court’s dismissal of a plaintiff’s overtime violation claim.
The case was not without controversy, though, as the court had to navigate a circuit split on this issue, and a split between the districts courts within the Second Circuit. Further, the opinion generated a forceful dissent, which suggests this matter, although settled in the Circuit, may rise again at the Supreme Court one day.
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On April 27, 2021, the Second Circuit Court of Appeals held in a two to one decision that a plaintiff seeking to recover damages under the Fair Labor Standards Act’s (FLSA’s) extended three-year limitations period for willful violations must do more than make a blanket allegation of “willfulness” to sustain a claim at the initial pleading stage. The case,
The background facts are straightforward. Plaintiff-appellant Mark Whiteside worked for Hover-Davis as a Quality Engineer, an exempt salaried position. In January 2012, Whiteside’s duties changed, and he began performing the duties of a non-exempt Repair Organization Technician, working between 45 to 50 hours a week. Whiteside’s pay rate was not reduced when his duties changed, nor did he receive overtime compensation. After his employment terminated for economic reasons, Whiteside filed suit alleging various claims, including FLSA violations.