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Parties in contract attorney pay lawsuit eye settlement

December 17, 2015

Parties reached a settlement agreement in a class action lawsuit over a claim of unpaid overtime that arose from an attorney who worked through a staffing firm, according to court records filed Tuesday. The agreement calls for a payment of $75,000 to three plaintiffs and their law firm.

The case was first filed in 2013 by David Lola, claiming he was not paid for hours worked over 40 per week by the staffing buyer — law firm Skadden, Arps — and staffing firm Tower Legal, according to court records.

Lola was doing document review work for the law firm at a site in North Carolina for $25 an hour and was paid for 40 hours a week despite working 45 to 55 hours per week, according to court records.

Defendants claimed Lola was an exempt professional under the Fair Labor Standards Act and not entitled to overtime. Lola argued the document review work he performed didn’t amount to the practice of law. Lola was also a licensed attorney in California, but not in North Carolina where the work was performed or in Ohio from where the case he worked on originated.

A lower court had agreed with defendants that Lola’s work was practicing law, but an Appeals Court overturned the decision in July. It said the document review work did not amount to the practice of law.

“The gravamen of Lola’s complaint is that he performed document review under such tight constraints that he exercised no legal judgment whatsoever — he alleges that he used criteria developed by others to simply sort documents into different categories,” according to the Appeals Court decision. “Accepting those allegations as true, as we must on a motion to dismiss, we find that Lola adequately alleged in his complaint that he failed to exercise any legal judgment in performing his duties for defendants.”