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ARTICLE · 19 JUNE 2014

No Liability For Off-The-Clock Work Absent Employer Knowledge

A California appeals court refused to hold Kaiser Foundation Health Plan liable for alleged off-the-clock overtime about which it lacked knowledge.

United StatesEmployment and HR

A California appeals court refused to hold Kaiser Foundation Health Plan liable for alleged off-the-clock overtime about which it lacked knowledge. In Jong v. Kaiser Foundation Health Plan, Inc., Jong, together with two other Outpatient Pharmacy Managers ("OPMs"), filed a class action lawsuit against Kaiser seeking unpaid overtime. Jong worked as an OPM from 2005 to 2010. In 2009, Kaiser reclassified its OPMs as non-exempt as part of a settlement of a prior lawsuit alleging it had improperly classified OPMs as exempt. Jong asserted that, both prior to the reclassification and thereafter, there was no change in his duties and OPMs were still required to work 50 hours per week to meet Kaiser's expectation. At the same time, Kaiser held OPMs accountable for hitting budget targets, and Jong had been disciplined for going over budget, at least in part due to overtime he had reported and for which he was paid. According to Jong, he was forced to either meet his employer's

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