Desmond v. PNGI Charles Town Gaming, L.L.C., 630 F.3d 351

Three former racing officials (Desmond, Witherspoon, Sanders) sued their employer for unpaid FLSA overtime; district court granted summary judgment for exemption, which this court reversed and remanded.
On remand, district court granted summary judgment for employees on liability and calculated unpaid overtime under §216(b) using Overnight Motor method for the regular rate.
Employer conceded hours owed; district court determined the regular rate per week and applied a 50% overtime premium, not 150%.
The district court relied on the premise that the fixed weekly salary covered all hours worked and met minimum wage, aligning with Overnight Motor principles.
Cross-appeal contested willfulness; employer argued no willful violation; district court initially held willful, extending the limitations period to three years.
The Fourth Circuit affirmed the calculation method, vacated the willfulness ruling, and remanded for trial on willfulness.

Issue	Plaintiff's Argument	Defendant's Argument	Held
How should unpaid overtime under §216(b) be calculated?	Desmond argued for 150% multiplier per 778.114.	Charles Town argued for 150% based on lack of mutual understanding; or Chevron-based interpretation.	Affirmed 50% premium under Overnight Motor where fixed salary covers all hours.
Whether the FLSA violation was willful	Employees contend lack of willfulness evidence; previously determined there were material facts.	Employer contends genuine factual disputes exist; willfulness not established as a matter of law.	Vacated for trial on willfulness to resolve genuine issues of material fact.

Overnight Motor Transportation Co. v. Missel, 316 U.S. 572 (1942) (regular rate calculation for fixed weekly salary; 50% premium for overtime when salary covers all hours)
Valerio v. Putnam Assocs., Inc., 173 F.3d 35 (1st Cir. 1999) (use of 50% overtime premium in mistaken exemption cases)
Blackmon v. Brookshire Grocery Co., 835 F.2d 1135 (5th Cir. 1988) (application of 50% premium in mistaken exemption cases; rejection of 150% method)
Clements v. Serco, Inc., 530 F.3d 1224 (10th Cir. 2008) (affirmed 50% premium using 778.114; no need for mutual understanding on overtime)
Urnikis-Negro v. American Family Prop. Servs., 616 F.3d 665 (7th Cir. 2010) (supports 50% premium when fixed salary covers hours; rejects retroactive 778.114)
Lyle v. Food Lion, Inc., 954 F.2d 984 (4th Cir. 1992) (willfulness standard, credibility and employer knowledge)
Martin v. Deiriggi, 985 F.2d 129 (4th Cir. 1992) (willfulness assessment supported by payroll and credibility findings)
McLaughlin v. Richland Shoe Co., 486 U.S. 128 (1988) (standard for willfulness: knowledge or reckless disregard)
Trans World Airlines, Inc. v. Thurston, 469 U.S. 111 (1985) (willfulness standard source for ADEA; applied to FLSA analysis)
Chevron U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837 (1984) (discussion of deference to agency interpretations)