In the case of Sebren v. Harrison, Sarah Sebren filed a lawsuit under the Fair Labor Standards Act (FLSA), the Rhode Island Minimum Wage Act (RIMWA), and the Rhode Island Payment of Wages Act (RIPWA). Sarah Sebren initially worked as a secretary/assistant and later became an attorney at the firm.
Sebren alleged that Harrison misclassified her as an independent contractor instead of an employee, resulting in unpaid minimum wages and overtime premiums. However, Harrison argued that Sebren stole a client’s file and breached her contract by taking the client to her law practice after leaving Harrison’s company.
The court found that Sebren was misclassified as an independent contractor before her admission to the bar, and Harrison failed to pay her as an employee. However, the court denied summary judgment on the calculation of damages, as there were genuine disputes of fact regarding the number of unpaid hours and overtime worked by Sebren. The court also imposed a penalty of $3,000 on Harrison for misclassification violations under the RIPWA.
Regarding Harrison’s argument, the court granted summary judgment to Sebren on the claim of theft of the client file and settlement without permission. In summary, Harrison was ordered to pay a penalty for misclassification violations. Sebren was granted summary judgment on most of Harrison’s counterclaims, but there were unresolved issues related to the contingency fee.
Key lessons from this case:
- Courts often rely on evidence provided by both parties to determine the appropriate amount of damages.
- Employers should properly assess the nature of the working relationship to determine the appropriate classification.
- Even if summary judgment is granted on some claims, there may still be unresolved issues that require further litigation or negotiation.
If you want to know more about overtime regulations, read our guide on Rhode Island Overtime Laws.
