News Notes: Workers Lose Wage-and-Hour Retaliation Lawsuit

Six former ticket sales employees of the Seattle SuperSonics won more than $13 million in damages last year after being fired for complaining about overtime violations and retaliation. But now, the Ninth Circuit Court of Appeal, which covers California, has thrown out the retaliation claims. The court said the workers could not sue for retaliation under the federal Fair Labor Standards Act because they had only complained about the overtime violations to their employer and had never filed a formal complaint with the government. Despite the court’s ruling, however, it’s critical to act on complaints promptly and not to retaliate against an employee who complains directly to you. This is because even workers who make only informal internal complaints are likely to be protected by California law against retaliation. And if their claims aren’t resolved and the government is notified, a potentially costly investigation can result.