In the case of Melinda Myers v. Iowa Board of Regents, employees of the University of Iowa Hospitals and Clinics (UIHC) filed a lawsuit against the Iowa Board of Regents (the “Board”). The employees claimed that UIHC was consistently late in paying their overtime wages, which were not included in their regular wages for the respective pay period. The Board argued that it had sovereign immunity and did not consent to private suits under the federal FLSA.
The Board sought to dismiss this case but was denied by the district court. The district court determined that the Board had waived sovereign immunity by implementing policies that incorporated FLSA wage and overtime pay standards. However, an appellate court disagreed with the district court’s decision.
The appellate court considered whether the Board implicitly consented to the lawsuit. The employees claimed that UIHC’s policies showed that the Board agreed to follow the FLSA. However, the court did not find any evidence that proved the Board had approved these policies. It was found that the Board hadn’t given up its sovereign immunity as its current rules didn’t guarantee FLSA overtime pay. Therefore, the Board couldn’t be sued under the FLSA.
In summary, the appellate court reversed the district court’s decision to dismiss the Board’s motion to dismiss and the case was remanded back to the district court for further proceedings.
Key lessons from this case:
- “Sovereign immunity” is a legal principle that shields certain entities from being sued without their consent. However, exceptions may exist if the entity voluntarily waives this immunity.
- An employer needs to ensure the policies in their handbooks and manuals are aligned with applicable labor laws and clearly state an employee’s rights.
- In overtime wage claims, the burden of proof lies with the employee, who must provide evidence to demonstrate their unpaid wages or establish that their employer violated specific policies.
If you want to know more about overtime regulations, read our guide on Iowa Overtime Laws.
