Earlier this week, five computer-network technicians filed suit against
Goldman Sachs Group Inc., claiming that they failed to receive all overtime compensation due.
At issue, whether the technicians are considered contractors or employees.
Fair Labor Standards Act (FLSA), all employees who are not exempt must be paid at a rate of one
and one half times their regular rate of pay for all hours worked in excess
of 40 hours in any workweek. This straightforward sounding rule is incredibly
complex, and is at the root of countless lawsuits.
Bardouille v. Goldman Sachs & Co., technicians alleged that they worked more than 70 hours in a week, yet
were denied overtime. More than 100 employees in New York and New Jersey
were also allegedly underpaid.
Whether an individual is classified as an “employee” or “independent
contractor” has significant implications for many businesses, and
may substantially impact an individual’s rights to benefits and
overtime compensation. Often no one specific factor conclusively answers
how certain workers are categorized. Rather, courts look at a variety
of factors to determine the nature of the relationship. The more evidence
of an employer exercising supervision, direction and control of an individual’s
work, the more likely an employer/employee relationship will be found.
Some considerations include:
• If the employer determines when, where and how services will be
performed • Whether the employer provides a facility where work is
performed • The amount of supervision provided • Whether the
employer or the worker determines the rate of pay • The exclusivity
of services • Whether permission is required for absences •
How the worker is compensated, i.e. by salary, hourly rate of pay, or
Where an employee relationship is found, workers may be entitled to substantial
sums in terms of benefits and overtime compensation.
If you have questions, or believe you have been denied all the compensation
you are entitled to, please contact the
Law Firm of The Buckley Law Firm, LLC, dedicated to protecting worker’s rights.