The United States District Court for the District of Kansas approved a $100,000 settlement in Swartz v. D-J Engineering, Inc.
Lead plaintiff Jonathan Swartz, along with seven other salaried employees, filed a lawsuit under the Fair Labor Standards Act against D-J Engineering in Augusta, Kansas. They claimed the manufacturing company misclassified them as exempt employees, required a standard 50-hour workweek, and failed to pay overtime. Evidence in the case showed that the company made 173 deductions from their salaries when they worked less than a full schedule. These deductions invalidated their exempt status and meant they were entitled to overtime pay.
The settlement distributed about $74,000 in back wages, an equal amount in liquidated damages, and the remainder covered attorneys’ fees and costs. The court found the resolution fair and reasonable for the affected employees.
Lessons learned from the case:
- Improper deductions from a salaried employee’s pay can remove exempt status and create liability for unpaid overtime under the FLSA.
- A fixed workweek of 50 hours does not replace the legal requirement to pay overtime when employees do not meet exemption criteria.
- Courts focus on actual pay practices and treatment of employees rather than job titles when determining exemption.
If you want to know more about salaried employee rights, read our guide on What are my rights as a salaried employee in Kansas?
