In the case of Dunlop v. New Hampshire Jockey Club, Inc., John T. Dunlop, the Secretary of Labor (will be referred to as the “Department of Labor”) filed a lawsuit against New Hampshire Jockey Club (NH Jockey) for violating overtime laws. The Department of Labor claimed that NH Jocker willfully failed to pay their employees time-and-a-half for hours worked over 40 per week.
NH Jockey admitted that certain employees did not receive compensation for their overtime hours. However, they argued that their company was exempt from paying overtime based on the amusement or recreational establishments exemption in the FLSA. NH Jockey filed a motion to dismiss and asserted a defense of “good faith”. They further argued that there was no willful violation, which would have affected the statute of limitations.
The court focused its analysis on whether NH Jockey was considered one or two establishments. NH Jockey was conducting racing activities at Rockingham Park with the New Hampshire Trotting and Breeding Association (NHTBA). Although both NH Jockey and NHTBA had separate licenses, they used the same facilities and had interrelated corporate structures. Based on this, they were considered one establishment but were not exempt under the receipts portion of this exemption.
The law stated that if the average income for any six months of the previous year was less than one-third of the average income for the remaining six months, then the overtime rules of the Act did not apply. NH Jockey did not fall under this exemption and thus was deemed liable for all overtime back wages. Ultimately, the court denied NH Jockey’s motion to dismiss and may be held liable for unpaid overtime wages for up to 3 years before the complaint.
Key lessons from this case:
- The Department of Labor can take action (on behalf of employees) against employers who violate overtime laws.
- Exemptions are strictly interpreted and the burden of proving eligibility for exemption rests with the employer.
- Employers can claim overtime exemption if they fall under certain categories like the amusement, seasonal, or recreational establishment exemption.
If you want to know more about overtime regulations, read our guide on New Hampshire Overtime Laws.
