3rd Circ. Shoots Down NutriSystem Commission Suit

Law360, New York (September 8, 2010, 4:09 PM EDT) -- A federal appeals court has affirmed a lower court's decision to dismiss a collective action against NutriSystem Inc., saying the weight loss company was exempt from paying overtime to call center employees because its method of compensation constitutes a commission.

In a 2-1 decision Tuesday, the U.S. Court of Appeals for the Third Circuit said the lower court was correct to boot the Fair Labor Standards Act and Pennsylvania Minimum Wage Act suit brought by Adrian Parker because the company's compensation plan establishes a “bona fide...
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