Auto-Chlor, Branch Managers End Overtime Wage Collective Action

Branch managers for Auto-Chlor System LLC and its subsidiaries agreed to drop their collective action against the rental equipment companies over alleged violations of the Fair Labor Standards Act.

Magistrate Judge Alex G. Tse of the US District Court for the Northern District of California in an April 11 order granted the parties’ request to dismiss the case with prejudice. The branch managers alleged in their May 2023 complaint that Auto-Chlor misclassified them as exempt from FLSA overtime protections, even though their responsibilities weren’t significantly different from nonexempt workers.

• The companies had a policy of allowing branch managers to work ...