Martin v. PepsiAmericas, Inc., No. 09-60896

FLSA Overtime Action

In Martin v. PepsiAmericas, Inc., No. 09-60896, an action for unpaid overtime wages allegedly due under the Fair Labor Standards Act, the court reversed the dismissal of the action where setoffs in unpaid overtime matters were improper unless the money being set-off could be considered wages that the employer pre-paid to the plaintiff-employee.

As the court wrote:  "Karen Martin sued her former employer, PepsiAmericas, Inc. ("Pepsi"), to recover unpaid overtime wages allegedly due under the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201 et seq. The district court granted Pepsi's motion to dismiss for lack of subject matter jurisdiction after finding that Martin's maximum potential recovery was less than the value of her severance package from Pepsi, which the district court determined should be set-off against any potential damages awarded to Martin."

Related Resources

• Read the Fifth Circuit's Decision in Martin v. PepsiAmericas, Inc., No. 09-60896