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Michigan court rules for Randstad in overtime class-action case

May 15, 2015

A Michigan federal court this week ruled Randstad’s account managers, assistant branch manager, and staffing consultants are administrative employees under the Fair Labor Standards Act and not entitled to overtime pay.

The plaintiffs had claimed that they were misclassified as exempt from the overtime requirements of the Fair Labor Standards Act by Randstad, their former employer.

The plaintiffs — Judith Perry, Erin Lane, Aimee Dooling and Suhaima Choudhury — worked for Randstad at its Troy, Mich., branch in several positions; their base pay ranged from $32,000 to $48,125 and they were also eligible for commissions and bonuses. All of the plaintiffs, except Choudhury, were classified as exempt. Choudhury was classified as non-exempt, but claimed she was not informed of this or permitted to claim overtime hours.

The plaintiffs argued they did not qualify for the administrative exemption because their primary duty did not include the exercise of discretion and independent judgment with respect to matters of significance, and because the employer’s “Work Planning Index” dictated what tasks they performed, constraining their discretion and exercise of independent judgment.

However, the court found the plaintiffs performed inherently discretionary tasks and rejected their argument that they were “micromanaged” and “constrained” by the Work Planning Index.

The case is Perry v. Randstad Gen. Partner (US) LLC.