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Sales Reps Win Wage and Hour Class Action Against Wyndham

On January 29, 2018, Judge C. Clifford Shirley Jr., of the U.S. District Court for the Eastern District of Tennessee, found that Wyndham Vacation Resorts Inc. and Wyndham Vacation Ownership Inc. (collectively, "Defendants") violated the Fair Labor Standards Act ("FLSA") by prohibiting its sales representatives from recording or recovering overtime despite working overtime, telling its sales representatives to clock out for breaks which they did not take, and by instructing sales managers to edit timecards to misrepresent the time that sales representatives worked.

Jesse and Michael Pierce ("Plaintiffs"), on behalf of themselves and all others similarly situated, originally filed the proposed class action in October 2013.  Judge Shirley granted certification of the class in August 2014.  The class is defined as "Current and former nonexempt, commission-paid, front-line sales representatives; in-house sales representatives; and discovery sales representatives who were employed in the Wyndham Tennessee resorts between October 2010 and October 2013."

Through live testimony and depositions, the Court discovered that even though sales representatives did not take breaks, they were required to show a break on their timecards.  Additionally, David Nelon testified that, as a manager, he was instructed to ensure that sales representatives' timecards reflected a break before six hours and that the cards did not show more than 40 hours worked.  He stated that he would review the timecards and alter them as necessary to adhere to Defendants' policies.  The Court found, therefore, that not only did management know about the FLSA violations, they were actively involved in them.  Judge Shirley stated that a monetary judgment would be entered after the parties file a joint status report on the calculation of damages by February 2. 

The legal team at SFMS has significant experience litigating wage and hour and class action matters.  If you have any questions regarding this subject or this posting, please contact Nick Lussier ([email protected]) or Chiharu Sekino ([email protected]).  We can also be reached toll-free at (866) 540-5505.

Shepherd, Finkelman, Miller & Shah, LLP is a law firm with offices in California, Connecticut, Florida, New Jersey, New York, and Pennsylvania.  SFMS is an active member of Integrated Advisory Group (www.iaginternational.org), which provides us with the ability to provide our clients with access to excellent legal and accounting resources throughout the globe.  For more information about our firm, please visit us at www.sfmslaw.com.

Sources

Hanson, Joyce.  "Wyndham Vacation Sales Reps Win OT Suit In Tennessee."  Law 360.  Last modified on January 30, 2018.

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