HR Management & Compliance

‘Double Recovery’ Exception Leaves Employee with No Overtime Pay

By Sarah Bowers, JD, Faegre Baker Daniels

The Indiana Court of Appeals recently affirmed a lower court’s ruling that a former Ivy Tech Community College employee was not entitled to overtime under the Indiana Wage Payment Act (WPA) or the Indiana Minimum Wage Law (MWL).

The court ruled that Ivy Tech was not an “employer” for purposes of the MWL because it is subject to the federal Fair Labor Standards Act (FLSA) despite the fact that the employee was unable to sue Ivy Tech under the FLSA since it is a political subdivision of the state of Indiana.

The employee argued that he should be able to recover overtime under the MWL because there was not a threat of double recovery under the FLSA, but the court held firm to black-letter law and denied him overtime compensation.

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