In the case of Jordan v. Maxim Healthcare Services, Inc., Theresa Jordan filed a lawsuit against Maxim Healthcare Services (Maxim) for violating the Fair Labor Standards Act (FLSA). Jordan, certified nursing assistant (CNA) for Maxim, claimed that Maxim had failed to pay her, and other similarly situated employees, overtime wages.
The CNAs worked for Maxim as home healthcare aides. They often worked more than 40 hours a week but were only paid for their regular hours. They were not given overtime pay for any additional hours worked.
Maim argued that the CNAs were considered exempt from overtime due to the FLSA’s companionship exemption. This exemption applies to employees who provide companionship services to disabled or chronically ill individuals.
The court initially disagreed with Maxim’s argument as it was found that the CNAs did not meet the companionship exemption requirements. Settlement amounting to $2,015,253 for overtime back wages was set to be awarded to the CNAs.
However, this decision was reversed by the Court of Appeals. The court found that Jordan and the other CNAs were employed by a third-party employer, which makes them exempt from overtime pay under Colorado law.
The case was remanded back to the district court and instructed to enter a ruling in favor of Maxim.
Key lessons from this case:
- The case emphasizes the importance of identifying the relationship between employees and their third-party employers to determine overtime eligibility.
- This case highlights that a judgment can be reversed even if the initial ruling included a settlement amount.
- Employees need to familiarize themselves with the specific exemptions that apply under both Colorado state and federal law as both can be used depending on the circumstances.
If you want to know more about overtime regulations, read our guide on Colorado Overtime Laws.
