This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CROSSMARK Defeats Class-Action Certification In FLSA Overtime Lawsuit

PHILADELPHIA, Nov. 26, 2012 /PRNewswire/ -- The labor and employment trial team at Fish & Richardson is announcing an important victory on behalf of CROSSMARK, Inc., after a federal district court in Philadelphia denied nationwide class status in a closely watched lawsuit over claims that the company had failed to pay certain employees for all of the time they claimed to have worked.

The ruling stems from a February 2011 federal lawsuit filed by several dozen current and former CROSSMARK employees who alleged the Plano, Texas-based company violated the Fair Labor Standards Act (FLSA) by requiring employees to work "off the clock" without pay. The plaintiffs had sought to represent a class of employees that would have included most of CROSSMARK's retail representatives, creating a pool of plaintiffs exceeding 20,000 current and former employees and exposing the company to tens of millions of dollars in liability. The case is James Postiglione et al. v. CROSSMARK, Inc., No. 2:11-cv-00960-NS, in the U.S. District Court for the Eastern District of Pennsylvania.

In a ruling released Friday, Nov. 16, Federal District Court Judge Norma L. Shapiro concluded that the plaintiffs had failed to demonstrate that all of the potential class members were "similarly situated," or that they had been affected by any "nationwide policy or plan" in violation of the FLSA. CROSSMARK's nationwide pay practices are fully compliant with the FLSA. CROSSMARK requires all of its hourly employees to accurately report all of the time they actually work, and strictly prohibits supervisors from suggesting that employees work "off-the-clock." The ruling found that the plaintiffs' allegations, even if taken as true, suggested that a few local supervisors, at most, may have given instructions that were contrary to CROSSMARK's policy.

"Today's decision is a complete vindication of CROSSMARK's pay practices," says attorney Stephen Fox, a Principal in Fish & Richardson's Dallas offices. "Going from a class of 20,000 to a 'class' of one, this victory is not just a home run, it's a grand slam. In fact, it's like hitting two grand slams in the same game. CROSSMARK is a great company, managed by great people who have great people working for them. It treats its employees fairly and pays them equitably."

A major factor in the Court's decision was what Judge Shapiro described as the "patently unreliable" nature of the plaintiffs' evidence, which included dozens of nearly identical affirmations that were not individually drafted for the employees who signed them and contradicted the employees' own deposition testimony or time sheets and payroll records. One plaintiff claimed in her affirmation that she was only allowed to report a "fixed" 15 minutes per day for certain administrative tasks, regardless of how long they actually took. But her payroll records showed that the amount of "administrative time" she actually reported was widely varied, and, in some weeks, she reported and was paid for as much as 16 hours of such time.  A former CROSSMARK supervisor who had submitted an affirmation in support of plaintiffs' allegations testified in her deposition that she always instructed her employees to report all of the time they actually worked.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs