Secretary of Labor v. Gleason Research Associates Inc et al

On March 27, 2026, the U.S. Department of Labor filed a lawsuit in the Eastern District of Virginia against Gleason Research Associates Inc. and its CEO Mark Gleason. The complaint alleged that the defense contractor willfully misclassified hundreds of security-cleared intelligence analysts as exempt administrative employees, denying them overtime compensation required under the Fair Labor Standards Act. The investigation, triggered by a worker complaint, revealed that the employees routinely worked over 50 hours per week performing core operational duties rather than exempt managerial tasks. The Department sought back wages, liquidated damages, and an injunction to prevent future violations.

The court granted summary judgment in favor of the Secretary of Labor, finding the misclassification willful. Gleason Research Associates was ordered to pay $3.1 million in back wages and an equal amount in liquidated damages, and to implement a compliant timekeeping system.

Whether the intelligence analysts performed duties that qualified for the administrative exemption under the FLSA, and whether the employer’s misclassification was willful, thereby extending the statute of limitations and allowing for liquidated damages.

The case sent a strong signal to the government contracting industry about strict enforcement of overtime rules for salaried analysts. It prompted several large defense contractors to voluntarily reclassify similar positions, emphasizing that routine analytical work does not automatically qualify for the administrative exemption simply because employees hold security clearances.