Kerbes v. Raceway Associates, LLC
356 Ill. Dec. 476
Ill. App. Ct.2011Background
- Plaintiff Earl Kerbes, on behalf of himself and similarly situated workers, sues ISC for unpaid overtime after ISC changed the paid workweek for part-time hourly employees.
- ISC moved the workweek from Tuesday–Monday to Saturday–Friday in 2007/2008, altering when overtime would accrue.
- Employees frequently worked 60–80 hours per racing weekend before the change, creating substantial overtime prior to the shift.
- Plaintiff asserts violations of the Illinois Minimum Wage Law (MWL) and Wage Payment Act (WPA) due to the workweek modification.
- The circuit court dismissed the complaint for failure to state a claim; plaintiff appealed seeking reversal and further relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ISC’s workweek change violated MWL §4a overtime rules | Kerbes asserts the shift to a new workweek evaded overtime | ISC contends the change complies with MWL and does not evade overtime | Dismissed; no MWL §4a violation found |
| Whether the change to a permanent workweek evades overtime under regulations | Change designed to avoid overtime payments | Change permissible if permanent and not designed to evade overtime | Dismissed; not evading overtime under applicable regulations |
| Whether the amended complaint preserved the original claim and was properly dismissed | Original claim preserved via amendment | Record shows dismissal of amended complaint; pleadings ambiguous | Affirmed; dismissal upheld as to the original claim |
| What standard governs the dismissal of the MWL/WPA claim | De novo review of legal sufficiency | Proper dismissal under 2-615 on legal sufficiency grounds | Affirmed; de novo review confirms lack of viable claim |
Key Cases Cited
- Mechmet v. Four Seasons Hotels, Ltd., 825 F.2d 1173 (7th Cir. 1987) (overtime framework compatible with MWL and FLSA interpretations)
- Harned v. Atlas Powder Co., 192 S.W.2d 378 (Ky. 1946) (split workweeks do not automatically bar overtime if 40 hours are in the employer-defined workweek)
- Barclay v. Magnolia Petroleum Co., 203 S.W.2d 626 (Tex.Civ.App.1947) (employer's right to establish a workweek; no express prohibition against split weeks in this context)
- Haynes v. Tru-Green Corp., 154 Ill.App.3d 967 (Ill. App. 1994) (interpreting MWL/FLSA alignment and workweek regulations in Illinois context)
- Lamon v. City of Shawnee, Kansas, 972 F.2d 1145 (10th Cir. 1992) (split-workweek arrangements and FLSA overtime considerations)