Judge Sends Salary Overtime Dispute to Jury
Employers paying fixed weekly salaries for variable hours in Washington must show the pay covered every hour worked.
Updated on Nov. 6, 2026 in Human Resources
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A federal judge in Washington state ruled that a former Banfield Pet Hospital senior hospital installation coordinator's overtime and retaliation claims may proceed to a jury trial. The case turns on whether his weekly salary, which included 40 hours of regular pay, was meant to cover all hours worked under a fluctuating work week standard.
Why it matters
The ruling keeps a salary-based overtime question alive for employers that pay fixed weekly salaries to hourly-type roles. Whether the pay arrangement was clearly and mutually understood as covering all hours now goes to a jury rather than being resolved on the papers.
The salary structure included 40 hours of regular pay each week, the baseline against which the overtime claim is measured. The source reports no figures on the number of overtime hours claimed or the size of any potential award.
The players
Banfield Pet Hospital
Banfield Pet Hospital is a large chain of veterinary hospitals operating as a subsidiary of a major pet-care network, with a business model built on standardized in-clinic services and salaried clinical staffing.
US District Court for the Western District of Washington
The federal trial court with jurisdiction over Washington's western counties, which hears federal employment claims including Fair Labor Standards Act overtime and retaliation cases.
David G. Estudillo
David G. Estudillo is a United States District Judge in the Western District of Washington who ruled that the overtime and retaliation claims may proceed to a jury trial.
The details
Under a fluctuating work week arrangement, an employer pays a fixed weekly salary regardless of hours worked, and overtime is owed only for hours beyond 40 at a half-time premium on top of that salary. Lamb alleges Banfield did not pay him overtime and fired him after he complained, and the court found those claims sufficiently supported to proceed. The jury will have to decide whether both sides understood the salary as covering every hour worked, which is the condition that makes the fluctuating work week method valid.
Timeline
Judge David G. Estudillo issued the ruling on Thursday, November 5, 2026.
Market Landscape
The fluctuating work week method under the Fair Labor Standards Act has been a recurring source of litigation for employers that pay fixed salaries to workers with variable hours. This ruling follows that pattern by sending the question of mutual understanding to a jury rather than resolving it by summary judgment.
Employers paying fixed weekly salaries to hourly-type roles in Washington should review whether their pay arrangements clearly document that the salary covers all hours worked. Compliance questions of this kind are best routed to qualified employment counsel or an accountant.
The takeaway
Operators using salary-based pay for variable-hour roles should document the terms of that arrangement in writing and retain records of hours worked. Qualified employment counsel can assess whether a fluctuating work week structure is defensible in a given case.
Further reading
For more on the pay and overtime rules at the center of this case, explore Human Resources coverage on We are Main Street.
Source note: This article includes information reported by Bloomberglaw.
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