Feature
Is It or Isn’t It? Paralegals Fight for Overtime By Rebecca E. Neely The financial services and technology industries, among others, and now the legal industry, are facing similar woes, when it comes to overtime pay for certain types of employees. Loan officers, help desk associates, and now paralegals, claim the companies they work for erroneously classified them as exempt employees, and that they were owed overtime wages.
Across the nation, nearly 50 lawsuits are pending, regarding paralegals’ wage claims.
essentially the same types of tasks. As well, the policy of the law firm was that it did not pay salaried employees overtime.
Among those suits is one against the Mostyn Law Firm, a leading law firm based in Houston which focuses on personal injury. Much of the firm’s work centers on providing representation to both consumers and businesses in insurance disputes, including hurricane claims. Sherri Davis, a former paralegal with the firm, filed suit against Mostyn, contending she, as a rule, worked over 70 hours a week but did not receive overtime pay. Davis worked at the firm for two years, but left in 2009. After Davis filed her suit, another former paralegal joined her in the fight.
Rex Burch, an employment lawyer at Houston law firm Bruckner Burch, which focuses on wage and hour law, explained in a recent Houston Chronicle interview the paralegals’ claims are very common. Burch is not involved in the case against Mostyn.
Together, they allege that they, along with scores of other paralegals were erroneously categorized as salaried employees. Houston lawyer Alex Mabry is representing them. In recent weeks, the case was conditionally certified as a class action suit by U.S. District Judge Keith Ellison; this permits other paralegals who worked at the firm since August 2008 to join. In addition, the certification will make it a requirement for the Mostyn firm to furnish the names and addresses of its current and former employees. Meyer White is representing Mostyn. Their argument? Its paralegals shouldn’t be put all in the same category because they perform different types of work; some supervise. However, Ellison put the kibosh on that reasoning; from the evidence provided, it appeared the paralegals performed
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He explained that, for quite awhile, the U.S. Department of Labor has made it clear that paralegals are entitled to overtime pay. Not only has it been made clear in opinion letters, but as well, it’s specifically mentioned in the most recent rules regarding wages and hours. Why the confusion about what seems, on the surface, a cut and dried issue? Often, paralegals are not considered professionals, partially because the work they perform does not require a law degree. Burch explained he understands why paralegals are often classified as ‘salaried’, and therefore, ineligible for overtime. Many attorneys view paralegals as critical to their work, giving weight to their opinions and input. As well, they rely on these individuals to do a large portion of the legal work, including research, preparation and communication with clients. However, a paralegal is prohibited from giving legal advice in any form, or otherwise making legal decisions without the guidance of an attorney.
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