I blogged about this off-the-beaten-path case a short time ago. Wow, whoever thought the courts would work this fast? A federal judge dismissed a proposed FLSA collective action against Fluor Corp. filed by contractors who alleged that the Company did not pay them overtime based upon a contract performed in Afghanistan. The Court held that the country’s labor laws were inapplicable to foreign citizens who did not have work permits. The case is entitled Allen et al. v. Fluor Corp., and was filed in federal court in the Northern District of Texas.

The contractors had alleged that they were owed more than $5 million dollars in back-due overtime, as they worked twelve hours per day, seven days per week. They claimed this violated the Afghanistan Labor Code. The federal Judge, however, agreed with the Company that the Labor Code did not apply to workers who may have registered with the nation’s Investment Support Agency but were not compelled to apply for work permits in order to provide services. These contractors were providing housing, performing construction work and ensuring that, fuel, food and laundry services were provided for the soldiers.

The Court stated that “based on the evidence of foreign law submitted by the parties, including expert declarations, the court concludes that the Afghanistan Labor Code does not apply to plaintiffs. The code, by its terms, applies to foreign citizens who have obtained or will later obtain work permits, and not to other foreign citizens.”

Pursuant to the Bilateral Security Agreement between the U.S. and Afghanistan, military contractors must register with the Afghan Investment Support Agency, but need not apply for work permits. The Company contended that the requirement provided an exception for American contractors from the requirement to secure permits and, therefore, from the labor law that applies only to foreigners who have secured or will secure such permits. The Judge would also not allow the plaintiffs to amend their Complaint, as the fundamental defects in it could not be cured by re-pleading.

The Takeaway

An outlier kind of case with perhaps little relevance to the average employer, here in “the States.” It does, however, show that wage-hour situations, e.g. overtime class action suits, can arise in any number of scenarios or contexts and creative lawyers need to be able to adapt defenses to the tools, or body of law, at hand.

[View source.]