In Morales v. Bryant Concrete Construction, the Appellate Court of Maryland outlined a roadmap for overtime claims in Maryland. That roadmap is that Plaintiffs should pursue their remedies against the individual owners of small business and should seek exemplary damages and attorney's fees.
The Court first held that a 51% owner of a concrete company could be individually liable for overtime violations. This owner claimed she only provided "back-office" support, though she admitted she had the power to hire and fire, and set employee pay. (The Trial Court had dismissed out this owner).
Second, the Court found an employer can be liable for double damages under the Maryland Wage and Hour Law. It can only avoid these additional damages if the employer can prove it acted in good faith and had reasonable grounds for believe its actions did not violate the wage laws. (The Trial Court had declined to award the additional damages). In the end, the Appellate Court did not decide whether double damages were appropriate but ordered a re-trial (given its finding that the 51% owner could be on-the-hook)..
Notably, the overturned trial verdict was for about $14,000. Now, the case will be re-tried. Undoubtedly, the lawyers for the Plaintiffs will seek to recover their attorney's fees for both trials and the appeal. Through the appeal, the Plaintiffs' were already claiming $173,461.53 for fees and costs.
The moral of the story is that it rarely makes sense for an employer to try an overtime claim.
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