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Tuesday, 30 July, 2019

MTA NYC Transit Makes Settlement Payments to Workers in Unpaid Overtime Lawsuit

On July 29, 2019, Metropolitan Transit Authority New York City Transit (MTA NYC Transit) paid $570,771.36 in settlement payments to 412 employees who alleged in a federal lawsuit that MTA NYC Transit failed to pay them the overtime pay required by federal law.

The lawsuit, Brack v. MTA NYC Transit, specifically alleged that the employer violated federal law by categorizing certain employees as exempt from the Fair Labor Standards Act (FLSA), meaning they did not receive overtime pay at one and one half times their regular rate of pay for all hours worked over 40 in a workweek. The parties reached a settlement agreement to resolve these claims, which was approved by the Eastern District of New York on April 29, 2019. The settlement provided these employees amounts which included backpay and liquidated damages, as well as plaintiffs’ attorneys’ fees and costs.

Importantly, MTA NYC Transit now treats these employees as covered by the FLSA, meaning they are earing overtime compensation presently and going forward when they work over 40 hours in a workweek. Lead Plaintiff Fredrick Brack, who originated the suit on behalf of himself and other affected employees, praised the settlement: “This is a good victory for MTA workers who were long deprived of their overtime pay. Not only are they receiving backpay, but we are being paid overtime going forward.”

Attorney Gregory McGillivary, who represented the plaintiffs in this action, said, “We are proud to have represented MTA NYC Transit workers in this important case to vindicate their right to a fair day’s pay for a fair day’s work.”

 

  Gregory McGillivary was lead counsel for the MTA employees and is a partner at McGillivary Steele Elkin.