Brokerage President Advances Month-Without-Pay Overtime Lawsuit

A brokerage president can pursue overtime allegations for the month he went without a salary due to the company’s financial struggles, a federal judge said.

Foothills Brokerage Inc. argued Jason McDowell, who served as president of brokerage operations, fell under a Fair Labor Standards Act exemption for highly paid workers. McDowell plausibly alleged that the exemption no longer applied once Foothills quit paying his salary, the US District Court for the Eastern District of Tennessee said.

McDowell worked for Foothills for approximately one year. He says the company breached its contract with him and failed to pay overtime and ...