6th Circ. Case Highlights Belo Contract Litigation Risks
Law 360 Employment Authority October 27, 2023
Danielle Crane and Nicholas Bobb were featured in an article by Law 360 Employment Authority regarding their case, Jones v. Producers Service Corp., case number 23-3247 in the U.S. Court of Appeals for the Sixth Circuit.
The article discusses Belo contracts and their implications. Belo contracts are an exception to the typical overtime requirements of the FLSA which guarantee weekly compensation up to a certain amount for industries that necessitate irregular hours of work. The case was filed against Producers Service Corp., who paid its employees pursuant to a Belo contract. The workers argue that the plan is invalid because their hours were irregular due to scheduling, while the company asserts that it properly and fairly paid its employees, who had great fluctuations in work due to the nature of the industry. Belo contracts have strict criteria and are rarely used due to their technical nature. The outcome of this case could impact the use of Belo plans in the future. Employers interested in such agreements need to ensure compliance and employee understanding. Belo plans are attractive for unpredictable fields, can offer job security, and provide cost control benefits for both employers and workers but also come with strict obligations for employers.