In the case of Grove v. Meltech, Inc., Andrea Grove and Chrystina Winchell filed a lawsuit against Meltech, H&S Club Omaha (H&S), Shane Harrington, and Brad Contreras. Grove and Winchell claimed that they were misclassified as independent contractors while working as exotic dancers at Club Omaha, and as a result, they were denied minimum wage and overtime pay.
The court certified a collective action for other individuals who worked as exotic dancers at Club Omaha and were also classified as independent contractors. This collective action allowed other individuals to opt into this lawsuit. After this certification, both parties engaged in a settlement negotiation and reached an agreement that included all individuals who had opted into this lawsuit.
The settlement agreement allowed for an award of attorney’s fees and costs in the amount of $50,000. Grove and Winchell were offered service awards of $2,000 and $3,000 respectively. Moreover, Grove was offered $10,000 in exchange for the dismissal of her claims. Additionally, both Grove and Winchell were set to receive $5,000 each for the retaliation claims they had asserted in the case.
The court considered the settlement agreement to be a reasonable compromise and approved it as a fair resolution of the dispute.
Key lessons from this case:
- Employees who have been misclassified as independent contractors are entitled to overtime back wages that they did not receive.
- To avoid a lengthy trial, employees and employers can choose to negotiate a settlement agreement that benefits both parties.
- Similarly situated employees can opt-in to an overtime claims lawsuit if the court grants a conditional certification for a collective action.
If you want to know more about overtime regulations, read our guide on Nebraska Overtime Laws.
