In an effort to hold a County employer liable for overtime pay under the FLSA on the grounds that it should have known that its workers were working unpaid overtime, a group of plaintiff employees requested that the Court instruct the jury that the employer had a duty to review and consult daily activity logs–which were not used for payroll purposes– and that the employer would have constructive knowledge of employees working overtime as reflected in the logs. The Court refused to give the instruction. In Hertz v. Woodbury County Iowa, the United State Court of Appeals for the Eighth Circuit, upheld the lower court’s refusal to give the instruction. The Eighth Circuit concluded that though information concerning work hours in these daily activity logs might have indicated that workers were working overtime, it is not reasonable to require an employer to review these records for payroll purposes. Accordingly, the employer was not on “constructive notice” that some of its workers were working overtime. A copy of the decision can be read here.

If you would like more information on defending overtime or other FLSA claims please contact Eric W. Gunderson.