Lawsuit Filed By Employer Against Employee Can Constitute Unlawful Retaliation Under FLSA
After Detecon, Inc. discharged one of its officers, Larry Darveau, he brought this action, alleging that Detecon had not paid him overtime in violation of the Fair Labor Standards Act of 1938 (“FLSA”). Fifteen days later, Detecon filed a fraud suit in state court against Darveau. Darveau then amended his complaint in this case to allege that Detecon's lawsuit constituted an illegal retaliatory action under the FLSA.
The district court dismissed Darveau's overtime wage and retaliation claims. On appeal, the 4th Circuit affirmed the dismissal of Darveau’s overtime claim, on the ground that Darveau fell within the requisites of the administrative exemption. The appellate court reversed the dismissal of Darveau’s retaliation claim, however, holding that a lawsuit filed by an employer against an employee can constitute an act of unlawful retaliation under another federal statute governing employment rights when the lawsuit is filed with a retaliatory motive and lacking a reasonable basis in fact or law.
Darveau v. Detecon, Inc.
The 4th Circuit Court of Appeals’ jurisdiction includes Maryland, North Carolina, South Carolina, Virginia and West Virginia.