Eversheds Sutherland 11th Circuit Business Blog
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“Business Development Managers” Fall Under FLSA Administrative Exemption, Not Entitled to Overtime

In Brown v. Nexus Business Solutions, LLC, 2022 U.S. App. LEXIS 8777 (11th Cir. Apr. 1, 2022), the Eleventh Circuit held that “business development managers,” tasked with persuading corporate customers to purchase General Motors vehicles for their fleets, are not entitled to overtime compensation under the Fair Labor Standards Act (FLSA). The business development managers were employed...

Restaurant’s Mandatory Service Charge is Not a “Tip” Under FLSA

Tipped employees at Miami’s Nusr-et Steakhouse sued their employer, alleging that the restaurant violated the Fair Labor Standards Act by counting payments to employees from the restaurant’s mandatory 18% “service charge” as part of the employees’ “regular rate of pay,” rather than as tips. The district court rejected the employees’ claim and granted the restaurant’s motion for summary...

Court Vacates Preliminary Injunction Enforcing Non-Disclosure Covenant Where Former Employer Did Not Allege Any Prior Violation and Did Not Establish a Legitimate Business Interest in Customer Relationships

In an appeal of a preliminary injunction, the Eleventh Circuit dismissed part of the appeal as moot while vacating the remaining provisions of the preliminary injunction. Vital Pharm., Inc. v. Alfieri, 2022 U.S. App. LEXIS 1771 (11th Cir. Jan. 20, 2022). Vital Pharmaceuticals, Inc. brought suit against four former employees and a competitor based on certain restrictive covenants in its...

Court Affirms Summary Judgment in Employer’s Favor on ERISA Claims Arising from Discontinuation of Life Insurance

In Klaas v. Allstate Insurance Co., 2021 U.S. App. LEXIS 38473 (11th Cir. Dec. 28, 2021), the Eleventh Circuit affirmed summary judgment in the employer’s favor on ERISA claims stemming from the employer’s discontinuation of retirees’ life insurance benefits. Until 2013, Allstate provided eligible Allstate employees with life insurance that continued after the employee’s retirement....

Dual Jobs and Dueling Opinions: Divided Panel Reverses Summary Judgment in Employer’s Favor in FLSA Case

A divided panel of the Eleventh Circuit reversed summary judgment for the employer on an employee’s Fair Labor Standards Act (“FLSA”) claims in Rafferty v. Denny’s, Inc., 13 F.4th 1166 (11th Cir. 2021). Lindsay Rafferty, who had been a Denny’s server, claimed that the restaurant violated the FLSA in paying her sub-minimum wage for time she spent doing non-tip-producing work. The...

ERISA’s Fee-Shifting Provision Permits Awards Against Parties, Not Attorneys

Does ERISA’s fee-shifting provision, 29 U.S.C. § 1132(g)(1), permit a court to award fees against a party’s counsel?  Deciding this issue of first impression that has divided district courts within and without the Eleventh Circuit, the court in Peer v. Liberty Life Assurance Co. of Boston, 2021 WL 1257440 (11th Cir. Apr. 6, 2021), held that it does not.  Although the...

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