Facts

Peter Wright and Michelle Trame filed a collective and class action against Adventures Rolling Cross Country Inc., or ARCC, and Scott Von Eschen under the Fair Labor Standards Act and California law.

ARCC provided tours domestically and internationally, which were typically led by a few "trip leaders." Wright and Trame worked as "trip leaders" for ARCC. Von Eschen was the co-owner and President of ARCC.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that ARCC violated California's Labor Code and the FLSA by misclassifying its trip leaders as exempt from overtime and the minimum wage under the "organized camp" exemptions in state and federal law. Plaintiffs also contended that ARCC violated the law by failing to provide accurate records. As such, plaintiffs contended they suffered significant damages as a result of ARCC's violations of the law.

Plaintiffs alleged causes of action for breach of contract and violations of the Labor Code for failure to pay overtime; failure to pay earned wages upon discharge, waiting time penalties; failure to provide timely, accurate, itemized wage statements; failure to provide and/or authorize meal and rest periods/unpaid wages; failure to compensate for all hours worked; and failure to pay the minimum wage. Plaintiffs also alleged causes of action for violations of the FLSA and unlawful and/or unfair business practices in violation of California's Business and Professions Code.

DEFENDANTS' CONTENTIONS:
Defendants denied plaintiffs' allegations, and asserted various affirmative defenses. Defendants' primary contention was that the employment fell within the FLSA's "organized camp" exemption. Defendants initially asserted counter-claims against plaintiffs, but voluntarily dismissed the claims.

Result

The court granted summary judgment to plaintiffs, holding that the organized camp exemption did not apply to trip leaders, and certified plaintiffs' class claims. The parties agreed to a $500,000 settlement, which included $15,000 in enhancements each for Wright and Trame, with ARCC agreeing to reclassify all of its trip leaders as non-exempt and pay them minimum wages and overtime for all of their work in the United States.