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Bednar v. CT Corporation, 2003 WL XXXXXXXXXXD.Minn.) West’s Minnesota Jury Verdict Reports Thomas Bednar worked for CT Corporation System as a customer specialist. CT is a nationwide legal document...

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Bednar v. CT Corporation, 2003 WL XXXXXXXXXXD.Minn.)

West’s Minnesota Jury

Verdict Reports

Thomas Bednar worked for CT Corporation System as a customer specialist. CT is a nationwide legal document service company. The company offers various services to attorneys and law firms, and has offices in several states. There are approximately 300 customer specialists employed by CT. Until August of 2002, the customer specialists were compensated on a salary or “exempt” basis, and as such, were ineligible for overtime pay for any hours worked

in excess of 40 hours per week. After August 2002, customer service specialists were reclassified as non-exempt. In 2003, Bednar filed a class action complaint again CT in a Minnesota federal district court, alleging the classification of customer specialists as exempt violated the federal Fair Labor Standards Act, 29 U.S.C. 207(a)(1) and various state wage and hour laws. The complaint sought reimbursement for unpaid overtime, liquidated damages, and an award of attorney’s fees and costs. The parties agreed to settle the case on December 15, 2003 for a total payment not to exceed $2,825,000, including attorney’s fees. Under the terms of the settlement agreement, each member of the class who chose to participate in the settlement would receive back overtime pay based on the actual excess hours that individual worked, in addition to a payment of $4,066. The additional payment was deemed to cover any potential state law violations, liquidated damages and various other damages.

1. Were you surprised that this FLSA violation happened to a company that works in the legal industry and works with attorneys and law firms every day?

2. Notice in this case that it was only after the defendants figured out that they had wrongly misclassified the customer service specialists—and, in fact, corrected the matter—that the plaintiffs discovered the error and filed the class action to recover damages when they were misclassified. Is that fair?

3. Notice also that what may have started as one person, Thomas Bednar, having a single claim against the defendant turned into a full-blown class action costing the firm $2.8 million dollars in damages alone. Did it surprise you how much the case was settled for and how quickly it was litigated?

Answered 112 days After May 20, 2022

Solution

Rachit answered on Sep 10 2022
62 Votes
BUSINESS LAW     

BUSINESS LAW
1. I am not at all surprised to know that company who deals with law firm would violate ethical laws like FLSA. The company knew the open gaps of each laws and could manipulate them to their benefits. It was because of the awareness of the plaintiff and initiation by Mr Bednar that had pushed the company to the back foot for once. Had no one initiated the matter, company would be raking heavy profits and knowing the lawyers closely would always give them an edge...
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