ARTICLE
18 December 2013

Eleventh Circuit Affirms Employer's Directed Verdict Based On FLSA Outside Sales Exemption

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"I Blew Off My Exempt Duties" Insufficient To Establish Jury Question.
United States Employment and HR
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"I Blew Off My Exempt Duties" Insufficient To Establish Jury Question.

Slackers everywhere may have shed a tear in their Doritos on Friday after reading the Eleventh Circuit's decision in Reyes v. Goya Foods, Inc. , Case No. 13-12827 (11th Cir. 12/6/13)

The plaintiff in Reyes sought to bring an FLSA collective action against the defendant on behalf of himself and other similarly situated "sales brokers" that the defendant employed.  The sales brokers were responsible for promoting and selling the employer's products at retail food outlets within their territory.  At trial, the employer called two sales brokers as witnesses who testified that they were given weekly sales goals, rarely reported to the defendant's offices, set their own schedules and regularly sought to secure additional orders and better product placements from the outlets for which they were responsible.

Here's the interesting part of the case.  Based on the Eleventh Circuit's opinion, the plaintiff appears to have done little to contest this evidence.  Instead, he testified that he personally was pretty much satisfied to wipe down shelves and rotate inventory, and wasn't too interested in the sales/promotion part of his job.  (Oddly enough, he filed the case after being fired.  Go figure.)  According to the plaintiff, he did not have discretion in regard to the pricing of the items he sold, so he wasn't a salesman.

Affirming a directed verdict in Goya's favor, the Eleventh Circuit found that the plaintiff's arguments didn't amount to a hill of beans.  (C'mon, we've certainly used worse puns on this blog.)  In affirming the judgment, the Eleventh Circuit noted that, "although Reyes may have personally spent little time promoting Goya products -- his position as a sales broker at Goya qualified him as an 'outside salesman' under the FLSA."  Slip Op. at 5, emphasis added.

The Reyes decision reflects the importance of evidence demonstrating the employer's expectations from employees in exempt positions.  Job descriptions are certainly helpful in this regard.  Even more crucial, however, is evidence that the employer holds employees accountable for actually performing the exempt duties listed in a job description as the primary focus of their position.  In Reyes, that evidence came from other employees in the job classification.  But, such evidence can just as easily be found in performance reviews, self-evaluations, offer letters, raise letters, status reports and a variety of other sources.

The Bottom Line: Evidence that an employer holds exempt employees accountable for actually performing exempt duties can be critical.

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ARTICLE
18 December 2013

Eleventh Circuit Affirms Employer's Directed Verdict Based On FLSA Outside Sales Exemption

United States Employment and HR

Contributor

BakerHostetler logo
Recognized as one of the top firms for client service, BakerHostetler is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Labor and Employment, Intellectual Property, Litigation, and Tax — the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. Visit bakerlaw.com
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