NutriSystem Hit with OT Lawsuit

May 30, 2008 ( - NutriSystem Inc. stands accused in a federal court lawsuit filed in Philadelphia of not paying overtime to an estimated 400 sales associates.

The Philadelphia Inquirer said former sales associate Adrian E. Parker requested in the suit that it be certified as a class action to represent all call center salespeople. According to the suit, the salespeople earned a minimum of $10 per hour, but could supplement that base pay with an additional payment of $18 to $40 for every sale made.

The Inquirer said NutriSystem indicated in its annual report that sales associates are paid primarily on commission. Commissioned salespeople are typically not eligible for overtime under federal labor law.

“We feel the compensation plan is in accordance with applicable law, both state and federal,” NutriSystem’s lawyer, Sarah E. Bouchard, told the newspaper.

Plaintiff lawyer Shanon Carson said the associates should be paid overtime according to a calculation based on their flat-rate compensation.