New Fifth Circuit Opinion Reminds Employers of the Dangers of Failing to Maintain Accurate Time Records under the FLSA
What happens when an employer fails to keep accurate or adequate records of all time worked by an employee? Seventy-five years ago, the United States Supreme Court, in Anderson v. Mt. Clemens Pottery Co ., 328 U.S. 680, 687 (1946), superseded by statute on other grounds , 29 U.S.C. § 254(a), created a burden-shifting framework for FLSA claims where an employer fails to maintain proper records. More specifically, in those cases, a plaintiff need only show by "just and reasonable inference" that she was an employee, worked the hours, and wasn't paid." Id . On February 9, 2021, the Fifth Circuit released its opinion in United States Department of Labor v. Five Star Automatic Fire Protection, L.L.C ., No. 19-51119, applying this framework and affirming a bench trial award of nearly $250,000 in damages, including liquidated damages, to employees of a fire-sprinkler installation and service company who claimed they were not compensated for pre- and post-shift work incl...