Clayton Homes Employees File Class Action Lawsuit for Unpaid Overtime Wages

Home sales consultants and inside sales employees claim they were denied overtime pay due to being misclassified as exempt

Online PR News – 28-May-2019 – Baltimore, Maryland – On Friday May 24, 2019, four former employees filed a class and collective action lawsuit (Case No. 1:19-cv-01546-JKB) against Clayton Homes to recover unpaid overtime wages. Clayton Homes, a subsidiary of Warren Buffett's Berkshire Hathaway company, is the largest manufacturer and seller of mobile homes in the country. Clayton Homes employs Home Sales Consultants and other inside sales employees to assist with selling its mobile homes.

In recent weeks, some of the nation's largest manufacturers and sellers of mobile homes have come under fire for exploitative and predatory consumer practices. Numerous reports have outlined how some of the country's largest and most powerful companies, like Warren Buffet's Clayton Homes, have been able to maximize their profits by raising rent and interest rates on low income families. In April, John Oliver on Last Week Tonight drew national attention to this issue.

While these reports do a great job of outlining how these billion dollar companies mistreat their customers, it begs another question: how do they treat their employees?

Plaintiffs brought their case on behalf of themselves and other Home Sales Consultants who work or worked for Clayton Homes. Plaintiffs allege that Clayton Homes violated the wage and hour provisions of the Fair Labor Standards Act ("FLSA") by intentionally misclassifying its Home Sales Consultants as salaried, rather than hourly employees. As a result, Plaintiffs claim that they and other Home Sales Consultants were denied overtime wages. Plaintiffs allege that the type of work they performed did not exempt them from the overtime requirements.

Sometimes, employers will tell employees that they are not owed overtime compensation because they are exempt. However, the FLSA only exempts workers from the overtime requirements if they can meet specific tests regarding how they are paid and the job duties they perform.

According to the Complaint, Plaintiffs and other Home Sales Consultants did not make enough in commissions to exempt them from the FLSA's overtime requirements. Nonetheless, the Complaint alleges that Clayton Homes required its Home Sales Consultants to work excessive overtime hours without receiving any overtime pay.

Additional information regarding how other Home Sales Consultants who work or worked for Clayton Homes can join this case can be found here or by calling the Law Offices of Peter T. Nicholl at 410-244-7005. The case is entitled Dudley, et al. v. CMH Homes, Inc., (District of Maryland) (Case No. 1:19-cv-01546-JKB).

The Law Offices of Peter T. Nicholl is recognized as a leader in the field of wage and hour litigation. The firm has successfully handled numerous class and collective action lawsuits in the Baltimore-Washington region. The firm is committed to vigorously representing employees whose rights have been violated.

Media contact information: 410-244-7005

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