In the case of Lee v. Lighthouse Compliance Solutions, Inc., Debbie Lee filed a lawsuit against Lighthouse Compliance Solutions (Lighthouse) for violations of the Fair Labor Standards Act (FLSA) and the Arkansas Minimum Wage Act (AMWA). Lee worked as an applicant tracking system director for Lighthouse and claimed that they failed to provide overtime wages.
Lighthouse argued that Lee was not entitled to overtime pay under the administrative exemption of the FLSA. Lighthouse also counterclaimed a breach of contract on Lee’s part. Lighthouse alleged that a severance agreement existed and that Lee breached it by making disparaging remarks, soliciting clients, and bringing claims against them.
Both Lee and Lighthouse sought a summary judgment to dismiss the claims made by each other. Both motions were denied due to a material factual dispute regarding the applicability of the administrative exemption. Both parties disagreed on the primary duties, importance, and autonomy of Lee’s position, as well as whether she exercised discretion and independent judgment.
Lee’s motion to dismiss Lighthouse’s counterclaim was also denied as Lighthouse had provided a sufficient basis for establishing a breach of contract claim.
Key lessons from this case:
- Employees classified as “administrative” may be exempt from overtime pay under the FLSA.
- Employers must have a valid and enforceable contract with employees to assert a breach of contract claim.
- It is important to consider specific job duties and responsibilities when determining overtime eligibility under the FLSA and AMWA.
Learn more about Arkansas Labor Laws through our detailed guide.
