A federal judge in Georgia recently denied a plaintiff’s motion for conditional certification of a class-action lawsuit over wage and hour violations.
In Wallace v. Norcross Associates, LLC, the plaintiffs sought unpaid overtime wages under the federal Fair Labor Standards Act (FLSA). Alvina Wallace and the other litigants were sales associates or sales representatives employed by Norcross Associates, a telemarketing business that sold long-term telephone service contracts for providers like Verizon. During their employment, Wallace and the others worked on various sales campaigns geared toward business and residential customers. In return, they received payment along several different compensation schemes, including hourly pay, hourly pay and commissions, commissions only, commissions with $10 per hour recoverable draw, and an increasing hourly rate based on the total number of products and services sold.
Under these schemes, Wallace was employed from April 2007 until March 2012, during which time she was compensated at an hourly rate, an hourly rate plus commissions, and commissions only with a $10 per hour recoverable draw. Other litigants were paid on a commissions-only basis with a $10 per hour recoverable draw or an hourly basis plus commissions. All involved claimed that they regularly worked more than 40 hours per week but were never paid overtime. They also argued that their employer never paid them all of the commissions that they earned. Their employer, for its part, claimed that it had paid the litigants for all of their time. Nonetheless, Wallace and the other litigants sought FLSA section 216(b) class status.