In the case of Nelson v. Wal-Mart Associates, Inc., Christopher Nelson, along with other similarly situated individuals, filed a lawsuit against Wal-Mart Associates (Wal-Mart) for alleged failure to pay employees for their overtime. Nelson, a non-exempt hourly employee, worked at Wal-Mart’s food distribution warehouse. He claimed that employees in both the “Dry” and “Cold” sections of the warehouse were required to perform certain tasks before their shifts but were not allowed to clock in until right before their shifts. Nelson argued that these tasks were integral to their job and should be compensated for.
Dry Section employees were required to check out and bring back a mobile scanner and printer from the system control window, which took around 15 minutes. Nelson asserted that these devices were essential for labeling and taking inventory and that the time spent on these activities amount to around one hour per workweek. In the Cold Section, employees were required to put on personal protective equipment (PPE) before their shifts began. Nelson claimed that the process of putting on the PPE took about 15 minutes per shift.
Wal-Mart filed a motion to dismiss this case under the Minimum Wage Amendment (MWA) of the Nevada Constitution because Nelson’s hourly rate does not fall below the state minimum. Nelson countered by stating that he did not receive any compensation for their pre-shift activities and that Wal-Mart’s argument was incorrectly premised on Nevada’s “workweek requirement” for calculating the minimum wage.
The court rejected Wal-Mart’s argument. The court used a predictive approach to determine that the minimum wage calculation did not apply and that Nelson’s claims were still valid.
Key lessons from this case:
- Employers can face legal action if they fail to compensate employees for pre-shift activities that are necessary for performing their job duties effectively.
- Employers must consider both federal and state labor laws when determining overtime pay requirements, as they may differ in certain aspects, such as the calculation of minimum wage.
- Employers should carefully consider the time spent on tasks that are essential for employees to effectively perform their job duties. Even if the time spent on these activities seems minimal, if they cumulatively add up to a substantial amount over a workweek, employees may be entitled to overtime compensation.
If you want to know more about overtime regulations, read our guide on Nevada Overtime Laws.
