Megatel Homes Sued by Former Employee Seeking Allegedly Unpaid Wages

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A proposed collective action filed in Texas accuses Megatel Homes, Inc. of violations of the Fair Labor Standards Act (FLSA). The suit was filed by a former employee who worked for the defendant from approximately March 2016 to May 2017, and alleges he was misclassified as an employee exempt from FLSA protections.

The plaintiff claims that he regularly worked more than 40 hours per week – often 55 hours or more – under a “pay scheme” that compensated him with a flat salary, nondiscretionary bonuses and no overtime wages. According to the lawsuit, the plaintiff’s work duties included “contacting homeowners after receiving warranty requests, following the guidelines in the warranty manual with respect to requests, following up with homeowners to ensure prompt service, informing the Warranty Manager of problems as necessary, and monitoring and responding to email daily.” The suit argues that these duties did not provide the plaintiff with any significant authority over the business, making him a non-exempt employee entitled to FLSA protections, including time-and-a-half overtime wages.