Verkuilen v. MEDIABANK, LLC
646 F.3d 979
| 7th Cir. | 2011Background
- Verkuilen, an account manager at MediaBank, claimed overtime under the FLSA.
- MediaBank provides software to advertising agencies and employs Verkuilen to bridge developers and customers.
- Her duties included learning customer needs, translating them into specifications, and training staff on the software on customer premises.
- The district court granted summary judgment rejecting her overtime claim.
- The Seventh Circuit affirmed, applying 29 C.F.R. Part 541 to determine administrative exemption and focusing on Verkuilen's primary duty and relation to management or general business operations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Verkuilen was exempt as administrative under the FLSA. | Verkuilen performed duties related to management/operations. | MediaBank contends she lacked primary duty related to management; she is not exempt. | No, Verkuilen was exempt; primary duty related to general business operations. |
| Whether the primary duty required the exercise of discretion and independent judgment. | Her role involved significant discretion in translating customer needs. | Discretionary judgment was not sufficient to fit administrative duties. | Yes, it satisfied the discretion/judgment element. |
| Whether the work directly related to the management or general business operations of employer or customers. | Her work directly aided running the business and customer operations. | Her duties were not sufficiently tied to management operations. | Yes, directly related to management/general business operations. |
Key Cases Cited
- Roe-Midgett v. CC Services, Inc., 512 F.3d 865 (7th Cir. 2008) (administrative exemptions for embedded roles in client operations)
- Kennedy v. Commonwealth Edison Co., 410 F.3d 365 (7th Cir. 2005) (primary duty related to management or general business operations)
- Walling v. A.H. Belo Corp., 316 U.S. 624 (1942) (fluctuating hours and overtime rules under the FLSA)
- Piscione v. Ernst & Young, 171 F.3d 527 (7th Cir. 1999) (administrative exemptions and duties analysis)
- Smith v. Johnson & Johnson, 593 F.3d 280 (3d Cir. 2010) (administrative/exemption considerations in complex roles)
- Smith v. Government Employees Ins. Co., 590 F.3d 886 (D.C. Cir. 2010) (administrative duties and supervision)
- Staunch v. Continental Airlines, Inc., 511 F.3d 625 (6th Cir. 2008) (judicial treatment of administrative exemptions)
- Rutlin v. Prime Succession, Inc., 220 F.3d 737 (6th Cir. 2000) (overtime exemptions and discretion)