In the case of Lambert v. Ackerley, six former ticket sales agents (also known as “account executives”) of Seattle SuperSonics (Sonic), a National Basketball Association team, filed a lawsuit stating that they were not properly compensated for their overtime work. Instead of being paid overtime for the number of hours worked, the account executives were given a fixed amount of “overtime pay” every month.
Laura Lambert, one of the six who filed the lawsuit, raised her concerns with Sonic’s management about unpaid overtime. She also hired an attorney and it was confirmed that Sonic had violated the Fair Labor Standards Act (FLSA). A settlement was agreed and Lambert and the other agents were paid their owed overtime wages.
However, less than a week later, Sonic’s Executive Vice President indicated plans to lay off all the account executives. 9 out of 10 of the account executives working at Sonic were terminated, including the six who filed this lawsuit.
The six account executives alleged that they were fired in retaliation for their complaints. After a trial was held, the jury ruled in favor of the account executives. They were awarded $697,000 for the lost wages and $75,000 each for emotional distress.
However, Sonic argued that the amount of $75,000 for each account executive was excessive. The court agreed and remanded the case to determine the most reasonable amount. The final ruling is undetermined.
Key lessons from this case:
- Washington law prohibits employers from retaliating against employees who assert their rights regarding overtime pay or other wage-related issues.
- Emotional distress damages are available to employees who suffered mental anguish as a result of retaliation for fighting for their overtime rights.
- Overtime pay should be calculated based on the number of hours worked rather than a fixed monthly amount.
If you want to know more about overtime regulations, read our guide on Washington Overtime Laws.
