We usually think of FLSA and overtime cases arising in our country, but companies operating overseas have to deal with the laws of that country. In an interesting case that hearkens to the headlines of national security and international crisis, Fluor Corporation has requested that a federal judge dismiss a putative class action filed by contractors who allege that they were not paid overtime in violation of Afghanistan labor law. The company claims that the Afghan labor code does not apply to employees of U.S. contractors. The case is entitled Allen et al. v. Fluor Corp. and was filed in federal court in the Northern District of Texas.
The contractors filed suit in May 2016, claiming that the Company violated Article 67 of the Afghanistan Labor Code by not paying them overtime despite the fact that they worked twelve hours per day, seven days a week. They seek a class of at least 100 contractors and allege their total claims exceed $5 million dollars. They built base camps, provided housing, transportation and meals to the troops.
The Company defends by claiming that the contractors were fully paid under their employment agreements and under American law. The Company claims that although these men were “paid a fortune,” the workers are engaged in a “self-serving” attempt to benefit from the overtime laws in the Afghanistan Labor Code; the Company asserts such law does not apply to them. The lawyer for the Company asserted “these plaintiffs are not entitled to a windfall recovery under the laws of the Islamic Republic of Afghanistan.”
The Company argues that the Afghanistan Labor Code only applies to foreign workers who are required to obtain work permits, which these workers did not have, or need. The Company asserts that even if Afghan labor laws applied, there must first be findings of fact made by that nation’s labor regulator before that ruling could be appealed to a competent court.
The lawyer for the plaintiffs appealed for sympathy from the Court. He asserted that if the court declines jurisdiction, then hundreds or thousands of Americans will be prevented from pursuing their rights. He also claimed (perhaps with some justification) that going to Afghanistan to pursue these claims would be far too dangerous for the workers, adding that security alone would cost $20,000 a day. He also urged the Court note that Afghanistan remains a sovereign nation with the right to have its laws apply to workers who are in the country.
What an interesting set of circumstances this is! Of course, these men cannot go to Afghanistan to pursue their claims. That is why I believe the Court will side with the workers.