The U.S. Supreme Court has denied the petition for writ of certiorari filed by the City of San Gabriel in Flores v. City of San Gabriel. The petition sought to reverse the Ninth Circuit’s ruling with respect to two issues: 1) the inclusion of cash paid to employees in lieu of health benefits contributions from the regular rate for purposes of calculating overtime under the Fair Labor Standards Act (FLSA), and 2) the standard for finding a “willful” violation of the FLSA, which increases the statute of limitations from two years to three years. As is customary, there was no explanation provided by the Court in denying the petition for writ of certiorari.
The denial of review means that the Ninth Circuit’s ruling remains binding on all employers in California. More discussion of the Ninth Circuit’s ruling can be found here. For more information contact Jon Holtzman (jholtzman@publiclawgroup.com, 415-678-3807), Art Hartinger (ahartinger@publiclawgroup.com,510-995-5805), or Kevin McLaughlin (kmclaughlin@publiclawgroup.com 510-995-5806).