Court Ruling — 3rd Circuit, 1991

**Cooper Electric Supply Co. Case Summary** This case involved a dispute over whether inside salespeople at Cooper Electric Supply Co. should receive overtime pay. The company classified these workers as "administrative employees," which would exempt them from overtime requirements under federal wage laws. The salespeople disagreed and sued, claiming they were entitled to overtime pay for hours worked beyond 40 per week. The court ruled in favor of the workers on the main issue, finding that Cooper Electric's inside salespeople were not truly administrative employees and therefore must receive overtime pay. The court also went further than the lower court had, ordering Cooper Electric to pay not only the unpaid overtime wages but also "liquidated damages" – essentially a penalty equal to the amount of unpaid wages. The total award was $100,435. This ruling matters for workers because it shows that companies cannot simply label employees as "administrative" to avoid paying overtime. Courts will look at what workers actually do, not just their job titles. It also demonstrates that employers who violate wage laws may face additional financial penalties beyond just paying the wages they owed.