In the case of Branch v. Dairy, a truck driver, Elmer Branch, sued his employer, Cream-O-Land Dairy (Dairy), for not providing him with overtime compensation. Branch claimed that he put in over 40 hours of work per week, but was not given any pay for those extra hours. This is a violation of the New Jersey Wage and Hour Law (NJWHL).
Dairy believed they were not subject to paying overtime as they had received a determination from the New Jersey Department of Labor and Workforce Development (DOL) that their truck drivers were not entitled to overtime pay.
The trial court had granted Dairy’s motion for a summary judgment (judgment against one party without a full trial) which dismissed Branch’s claims. The trial court also stated that Dairy was entitled to NJWHL’s good-faith defense (this allows an employer to avoid paying overtime if they can prove that they reasonably believe they shouldn’t).
Branch decided to appeal this decision to the New Jersey Appellate Division. This division reversed the initial trial court’s decision and chose to reinstate Branch’s lawsuit.
Dairy was required to pay a total of $100,000 to Branch ($75,000 in back wages and $25,000 in liquidated damages).
Key lessons from this case:
- The good-faith defense may not always be successful.
- A summary judgment can still be reversed. Although getting dismissed by the trial court, appealing your case to the Appellate Division can ensure that you are given another chance to claim your rights.
- An employer needs to be fully aware of their legal obligations towards their employees.
If you want to know more about overtime regulations, read our guide on New Jersey Overtime Laws.
