Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Class-Action Overtime Suit Against Avis Gets Green Light
Author: Scarinci Hollenbeck, LLC
Date: February 10, 2014
Key Contacts
Back
A New Jersey district court judge has given the green light to workers of Avis Budget Car Rental, LLC who allege that the rental company failed to pay overtime wages. According to the court, the wage-and-hour class action suit may continue, even though the job duties performed by the class of workers varied.
The plaintiffs in Ruffin v. Avis Budget Car Rental are a nationwide class of former and current shift managers. They allege that Avis misclassified them as exempt from the Fair Labor Standards Act (FLSA) and “failed to pay them for all hours worked as well as overtime compensation” even though they performed non-exempt duties such as “cleaning cars, moving cars around the parking lot, checking inventory, renting cars, and/or installing child car seats.”
Under the FLSA, an employee may pursue a civil action to recover unpaid overtime on his own behalf as well as on behalf of other employees who are “similarly situated.” In this New Jersey employment suit, the parties disagree over whether the plaintiffs in the case meet the criteria, with Avis arguing that forcing it to defend “an array of inconsistent factual assertions would be fundamentally unfair and compromise Avis’ due process rights.”
As noted by the district court judge, neither the U.S. Supreme Court nor the Third Circuit Court of Appeals has provided guidance on the meaning of the term “similarly situated.” Therefore, district courts traditionally examine a variety of factors, including (1) the “disparate factual and employment settings of the individual plaintiffs,” (2) “the various defenses available to defendants,” and (3) “fairness and procedural considerations.”
In this New Jersey wage-and-hour case, the court found that the plaintiffs performed similar day-to-day functions, noting that they did not have to be “identical” to be similarly situated for purposes of an FLSA collective action. The court further found that the shift managers were subject to the same policies, procedures, work rules, and participated in the same training program.
With regard to the defense available to the defendant, the court found that determining whether plaintiffs fall under the FLSA exemption for employees who serve in a bona fide executive, administrative, or professional capacity would not make the class unmanageable. Finally, the court concluded that procedural considerations and fairness weigh in favor of collective treatment of plaintiffs, noting that a collective action would “effectively lower the parties’ costs, limit the controversy to one proceeding, and promote judicial efficiency.”
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Jorge R. de Armas or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Class-Action Overtime Suit Against Avis Gets Green Light
Author: Scarinci Hollenbeck, LLC
A New Jersey district court judge has given the green light to workers of Avis Budget Car Rental, LLC who allege that the rental company failed to pay overtime wages. According to the court, the wage-and-hour class action suit may continue, even though the job duties performed by the class of workers varied.
The plaintiffs in Ruffin v. Avis Budget Car Rental are a nationwide class of former and current shift managers. They allege that Avis misclassified them as exempt from the Fair Labor Standards Act (FLSA) and “failed to pay them for all hours worked as well as overtime compensation” even though they performed non-exempt duties such as “cleaning cars, moving cars around the parking lot, checking inventory, renting cars, and/or installing child car seats.”
Under the FLSA, an employee may pursue a civil action to recover unpaid overtime on his own behalf as well as on behalf of other employees who are “similarly situated.” In this New Jersey employment suit, the parties disagree over whether the plaintiffs in the case meet the criteria, with Avis arguing that forcing it to defend “an array of inconsistent factual assertions would be fundamentally unfair and compromise Avis’ due process rights.”
As noted by the district court judge, neither the U.S. Supreme Court nor the Third Circuit Court of Appeals has provided guidance on the meaning of the term “similarly situated.” Therefore, district courts traditionally examine a variety of factors, including (1) the “disparate factual and employment settings of the individual plaintiffs,” (2) “the various defenses available to defendants,” and (3) “fairness and procedural considerations.”
In this New Jersey wage-and-hour case, the court found that the plaintiffs performed similar day-to-day functions, noting that they did not have to be “identical” to be similarly situated for purposes of an FLSA collective action. The court further found that the shift managers were subject to the same policies, procedures, work rules, and participated in the same training program.
With regard to the defense available to the defendant, the court found that determining whether plaintiffs fall under the FLSA exemption for employees who serve in a bona fide executive, administrative, or professional capacity would not make the class unmanageable. Finally, the court concluded that procedural considerations and fairness weigh in favor of collective treatment of plaintiffs, noting that a collective action would “effectively lower the parties’ costs, limit the controversy to one proceeding, and promote judicial efficiency.”
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Jorge R. de Armas or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.