In the case of Solkoff v. Pennsylvania State University, Joel Solkoff claimed that Penn State University had failed to provide him with overtime compensation as they misclassified him as an independent contractor.
Solkoff states that he had always been treated as an employee at Penn State during his duration of employment. He was required to provide timesheets, was subject to their policies and guidelines, and was also given access to their facilities.
Despite all that, Penn State classified him as an independent contractor and did not pay him for the overtime hours that he worked. Penn State also denied any misconduct on its part and wanted to dismiss Solkoff’s lawsuit.
A settlement was proposed, which included $97,500 in exchange for letting go of all claims made. $35,288 of that sum was to be for attorney fees and $62,211 for Solkoff. However, this settlement agreement also included a confidentiality clause and release of claims. This contradicts the purpose of protecting employees under FLSA.
This resulted in the court not moving forward with the settlement.
Key lessons from this case:
- It is important to clearly define an employee/worker’s duties and entitlements in the employment contract to avoid future disputes.
- Although a settlement agreement was presented, the court was able to see how certain aspects, such as the releasing of claims, can undermine an employee’s rights under FLSA.
- Despite not settling, this case shows that employees can rely on the judicial system to be in their best interests.
If you want to know more about overtime regulations, read our guide on Pennsylvania Overtime Laws.
