Albert S. Craig et al. v. Far West Engineering Company, Inc.; Far West Engineering Company, Inc. v. Albert S. Craig et al.

Summary

The Ninth Circuit affirmed judgments awarding former employees of Far West Engineering Company unpaid overtime compensation, interest, and attorney fees under the Fair Labor Standards Act. The court held that the employees were engaged in the production of goods for commerce and were not exempt executive or professional employees because they were paid on an hourly rather than salary basis. The court also upheld the denial of liquidated damages based on the district court's finding that the employer acted in good faith.

Holdings

1. Employees who prepared engineering drawings and designs that were shipped for use in an out-of-state plant were engaged in the production of goods for commerce within the Fair Labor Standards Act.
2. Employees paid on an hourly basis could not qualify for the executive or professional exemptions at issue because the governing regulations required compensation on a salary or fee basis.
3. The district court did not abuse its discretion by refusing to dismiss claims because six employees did not testify at trial or because two employees allegedly failed to comply with discovery requirements.
4. The employees were not entitled to liquidated damages because the district court found that Far West acted in good faith in failing to pay overtime.

Questions Presented

1. Whether the employees were engaged in the production of goods for commerce under the Fair Labor Standards Act.
2. Whether the employees were exempt executive or professional employees under 29 U.S.C. § 213(a)(1) and the Administrator's regulations despite being paid on an hourly basis.
3. Whether the district court erred by allowing recovery for employees who did not testify at trial and by refusing to dismiss two claims for discovery violations.
4. Whether the employees were entitled to mandatory liquidated damages under the Fair Labor Standards Act.

Disposition

affirmed