In the case of Oddo et al v. Bimbo Bakeries U.S.A. INC. et al in 2016, four employees, who were Route Sales Representatives (RSRs), alleged that Bimbo Bakeries failed to provide them with overtime compensation for all hours worked exceeding 40 in a week. The RSRs also claimed that Bimbo Bakeries failed to pay them for hours worked on weekends and holidays.
Bimbo Bakeries sought to dismiss the lawsuit and stated that the RSRs were exempt from overtime pay as they were independent contractors instead of employees. The district court had denied Bimbo Bakeries’ motion to dismiss. The court found that those RSRs were considered employees under the Fair Labor Standards Act (FLSA) and New Jersey state law.
By the end of this trial, the jury had favored the RSRs and found Bimbo Bakeries to violate the FLSA. The jury awarded the RSRs with an amount of $1.2 million in damages. $ 1 million was to be paid to the four RSRs in individual lump sums and the remaining $500,000 was to be paid to the attorneys.
However, Bimbo Bakeries had filed a motion for a new trial. This motion is currently still pending.
Key lessons from this case:
- The denial of Bimbo Bakeries’ motion to dismiss the case shows that overtime lawsuits can still proceed even when an employer tries to challenge an employee’s claims.
- The fact that the employer’s motion for a new trial is currently pending shows that both the employers and employees need to be prepared for a lengthy litigation process.
- An employer should familiarize themselves with the legal obligations that come with hiring a worker. They must also properly classify their workers (as employees or independent contractors) beforehand to avoid further confusion and issues.
If you want to know more about overtime regulations, read our guide on New Jersey Overtime Laws.
