Arbitrator Finds in Favor of Claimants in MASCO Retail Cabinet Group Case

Stueve Siegel Hanson won an arbitration against Masco Retail Cabinet Group on behalf of Account Representatives who service and merchandise Home Depot and Lowes stores in a wage and hour collective action arbitration. The case was filed with the American Arbitration Association. The arbitration alleged that Masco consistently violates federal wage and hour laws by misclassifying its Account Representatives exempt from federal overtime laws and thus depriving them of all the wages they are owed.

The Arbitrator certified the case as a collective action and found that Masco's Account Representatives were not properly classified as exempt as Outside Salespersons. In December 2010, the Parties participated in a two-week arbitration (similar to a trial) to determine whether Account Representatives fell within the "Administrative Exemption" from the FLSA's overtime requirements. After the conclusion of the arbitration hearing, the Arbitrator found for the Claimants (similar to Plaintiffs) and further found that Masco had misclassified all of its Account Representatives and they were not exempt under the Administrative Exemption. Therefore, Masco was required to pay back wages to each Account Representatives who filed consents to join the Arbitration.

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