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This memorandum addresses motions for partial summary judgment in a collective action under the Fair Labor Standards Act (FLSA) brought by Class Plaintiffs, former General and Assistant Managers at Shoney's restaurants. Plaintiffs allege Shoney's failed the salary basis test by docking their pay for cash shortages and casualty losses, treating them as hourly rather than exempt employees. The Court found evidence of both an employment policy and an actual practice of making such deductions, affecting 3.5% of managers with over 1,200 deductions between 1992 and 1995. Rejecting Shoney's defenses that these deductions were for safety rules of major significance or correctable under the window of correction, the Court concluded that the employer's actions demonstrated a lack of intent to pay employees on a salary basis. Consequently, Class Plaintiffs' motion for partial summary judgment was GRANTED, and Defendant's motion was DENIED, entitling plaintiffs to overtime pay.
Belcher v. Shoney's, Inc. is a workers' compensation case decided in District Court, M.D. Tennessee. This case addresses legal issues related to compensation claims, benefits, and court rulings.
It is commonly referenced in legal research involving workers' compensation laws in District Court, M.D. Tennessee.
Full Decision Text1 Pages
This memorandum addresses motions for partial summary judgment in a collective action under the Fair Labor Standards Act (FLSA) brought by Class Plaintiffs, former General and Assistant Managers at Shoney's restaurants. Plaintiffs allege Shoney's failed the "salary basis" test by docking their pay for cash shortages and casualty losses, treating them as hourly rather than exempt employees. The Court found evidence of both an employment policy and an actual practice of making such deductions, affecting 3.5% of managers with over 1,200 deductions between 1992 and 1995. Rejecting Shoney's defenses that these deductions were for "safety rules of major significance" or correctable under the "window of correction," the Court concluded that the employer's actions demonstrated a lack of intent to pay employees on a salary basis. Consequently, Class Plaintiffs' motion for partial summary judgment was GRANTED, and Defendant's motion was DENIED, entitling plaintiffs to overtime pay.
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