Unpaid Overtime

The 11th Circuit Analyzes the Proper Process for Differentiating Employees from Independent Contractors Based on ‘Economic Reality’

January 30, 2026 | Parks, Chesin & Walbert

Incorrectly classifying a worker as an independent contractor when they really are an employee under the law can have many adverse consequences for the worker and the employer alike. In addition to tax liability, misclassifications can trigger liability under the Fair Labor Standards Act for minimum wage violations or unpaid overtime. To avoid these pitfalls, businesses should consult an Atlanta wage and hour lawyer to ensure they have correctly classified their workers.

To complete the employee-versus-independent-contractor classification process, one needs to understand what the laws governing the distinction between employees and independent contractors dictate. A recent unpaid overtime case before the 11th Circuit Court of Appeals offers a helpful reminder that classification status turns on economic reality, not simply the label the parties place on a worker.

The three plaintiffs in the case were insurance claims adjusters assigned to work claims in Texas in the aftermath of Hurricane Harvey. The client, a Texas insurance agency, contracted with a staffing firm to provide adjusters. The adjusters’ contracts with the staffing firm labeled them as “independent contractors.”

Incentive Bonuses and Their Impact on Overtime Calculations for Non-Exempt Employees

January 16, 2026 | Parks, Chesin & Walbert

Many non-exempt employees may receive total compensation that includes various forms of pay. An employee, for example, might earn, in addition to their base pay, bonuses. Depending on the nature of these bonuses, earning a bonus may impact an employee’s “regular rate of pay” and, therefore, their rate of overtime compensation required by the Fair Labor Standards Act. If you have questions about bonus pay and how a particular bonus should (or should not) impact regular rate of pay and overtime calculations, you should speak to a knowledgeable Atlanta overtime compensation lawyer.

The U.S. Department of Labor recently published an opinion letter that examines in depth the issue of bonuses, regular rates of pay, and overtime compensation.

The employer in the letter was a waste management company, and the employees in question were its drivers. The driver earned a base salary of $12 per hour. In addition to their base pay, drivers could earn up to $9.50 per hour under the employer’s “Safety, Job Duties, and Performance” bonus plan. The bonus rewarded behaviors such as “punctuality, attendance, consistency in completing daily safety tasks, driving safety, compliance with traffic laws, proper attire, and performance efficiency.” If a driver met their performance targets during a particular pay period, then the bonus applied to all hours the driver worked during that period.

How Misclassifying Employees as Independent Contractors Can Be Costly to Both Workers and Employers

December 10, 2025 | Parks, Chesin & Walbert

Action taken earlier this year by federal regulators has cost two related companies several hundred thousand dollars due to misclassifying dozens of workers as independent contractors when they were employees. The government’s action against the companies is a reminder of how costly misclassification can be for both workers and employers. If you have questions about whether a worker (or a group of workers) should be classified as employees or independent contractors, do not guess, assume, or take the easy way out and simply classify them all as independent contractors. Instead, get reliable legal advice by speaking with an experienced Atlanta worker classification lawyer.

The federal Wage and Hour Division’s action against two interconnected Louisiana companies, detailed in a news release, highlighted a critical problem in that state and across the country: the misclassification of home care industry workers as independent contractors.

The division’s investigation revealed that a pair of connected companies misclassified more than 150 home care workers as independent contractors when they really were employees. The workers “typically worked long hours” but received only “straight time” for all hours they worked rather than straight time for the first 40 hours and time-and-a-half for all hours in excess of 40.

A Look into What Workers Need to Obtain Certification of a FLSA Collective

November 26, 2025 | Parks, Chesin & Walbert

In Fair Labor Standards Act lawsuits, there is no such thing as a class action. Instead, the FLSA allows similarly situated workers who have been harmed by FLSA violations to pursue something known as a “collective action.” FLSA collective actions often can be complex and nuanced. That is why, whether you are a worker seeking to pursue a collective action or an employer facing a potential collective action, it is wise to consult an experienced Atlanta collective action lawyer to discuss your situation and your options.

Any group of workers’ success in a collective action involves correctly identifying (and pleading) all the elements the law requires, and then meeting those elements’ standards.

A misclassification case from South Georgia provides valuable insights into these elements and standards. The defendant was a chain of retail stores. The lead plaintiff was an “inside” salesperson whose job was to sell John Deere equipment and machinery.

How Implementing an Improper Rounding Method May Trigger a FLSA Violation

November 14, 2025 | Parks, Chesin & Walbert

Hourly employers (and employers who use hourly employees) are well acquainted with the “time clock.” Employers have an obligation to accurately record hours worked and pay workers for all time worked; otherwise, they risk violating the Fair Labor Standards Act. Employers, however, need not pay workers down to the minute. The law allows them to engage in rounding of hours so long as the rounding method is equally likely to round up as to round down. Systems that always round down deprive workers of compensation they had earned and violate the law. For questions about rounding of hours and what methods are (or are not) compliant with the FLSA, talk to an experienced Atlanta wage and hour lawyer to get the answers you need.

An example of an improper method — and the costs it can trigger — was on display earlier this year.

The Labor Department’s Wage and Hour Division announced in May that it had recovered nearly $600,000 in “back wages and damages” for more than 400 workers employed by a construction contractor in Florida.

How Pre-Trial Motions May Hold the Keys to Success in Your FLSA Lawsuit

November 7, 2025 | Parks, Chesin & Walbert

On TV, parties often win their court cases as a result of a massive revelation during trial in open court. In real life, parties often sow the seeds of their success before the trial even starts. A truck driver’s recent unpaid overtime case illustrates just how critical pre-trial motions can be in a Fair Labor Standards Act case. If you have questions about litigating your FLSA case, retain an experienced Atlanta unpaid overtime lawyer to provide the advice and advocacy you need.

The truck driver, K.S., initiated an FLSA lawsuit in 2022, alleging she worked substantial amounts of unpaid overtime. Specifically, she asserted that she worked roughly 70 hours per week but never received any overtime compensation as required by federal law.

The employer contended that federal law did not require it to pay the driver overtime compensation. Specifically, the employer argued that K.S. was an independent contractor, not an employee. The employer furthermore contended that it did not owe K.S. overtime because an exemption to the FLSA’s overtime requirement—the Motor Carrier Act Exemption—applied to its case.

Bonuses, Regular Rates of Pay, and Ensuring FLSA Compliance When Calculating Overtime Compensation

August 25, 2025 | Parks, Chesin & Walbert

One area of wage-and-hour law where employers can easily run afoul of the Fair Labor Standards Act is overtime pay… or, more specifically, underpayment of overtime. If an employer does not correctly assess the forms of compensation that go into calculating a worker’s regular rate of pay, then that employer runs the risk of underpaying the worker when they earn overtime compensation. An experienced Atlanta wage and hour lawyer can help provide you with reliable answers to the overtime compensation questions you have.

A federal investigation of a North Georgia plastic fabrication company revealed one place where employers can go wrong: bonuses.

The U.S. Department of Labor’s Wage and Hour Division investigated a Gainesville-area employer whose records showed that more than 700 workers received overtime compensation sums that were less than what they were entitled to.

A Middle Georgia Employer Successfully Defeats Call Center Workers’ Request to Create a FLSA Collective Action

August 11, 2025 | Parks, Chesin & Walbert

A Fair Labor Standards Act collective action can be a powerful tool for workers. Similarly, employers may find it preferable to fight an individual action as opposed to a collective lawsuit. Whether you are a worker or an employer, it is beneficial to understand the standards the law erects for certifying FLSA collective actions and the factors that may help win (or defeat) certification. When taking on such a lawsuit, it is well worth your while to consult an experienced Atlanta collective action lawyer for advice about your situation.

The FLSA does not have class actions; it permits collective actions. Unlike other class actions, where all covered individuals are deemed a part of the class unless they opt out, FLSA collective actions work differently. In a collective action, putative members must affirmatively opt in, rather than having to opt out.

One of the most fundamental aspects of collective actions is similarity among the proposed members. In a nearby unpaid hours case involving a call center, that similarity was lacking, according to the Middle District of Georgia.

A Staffing Firm Must Pay $9 Million for Misclassifying Its 1,100 Nurses as Independent Contractors

July 31, 2025 | Parks, Chesin & Walbert

One of the more substantial mistakes a business can make is to misclassify employees as independent contractors. An employee whose employer erroneously labels them as an independent contractor may be denied health care insurance coverage, family leave, and unemployment protection. They may also be deprived of the right to receive a minimum wage and overtime compensation. The employer that makes this mistake runs the risk of paying thousands — or millions — in a civil action. In short, both employers and employees have reasons to want to “get it right” when it comes to correct classification, and getting advice from a knowledgeable Atlanta wage and hour lawyer can be crucial to achieving this objective.

A federal case that started in Virginia provides an example of how costly misclassification can be. The employer was a Virginia-based medical staffing company that provided nurses to healthcare facilities in that state and the surrounding areas. The workers were a group of nurses, nurse practitioners, and nursing assistants.

To receive assignments from the company, the entity required candidates to fill out an “application for employment.” That document identified the nurse as an “employee” and the company as the “employer.” If the nurse successfully completed the employment application process, they ultimately signed an “independent contractor agreement,” which included a 12-month non-compete clause.

How a New WHD Policy Impacts Employers’ Exposure to Paying Liquidated Damages in Pre-Litigation Investigations

July 18, 2025 | Parks, Chesin & Walbert

In any legal or administrative dispute, one of the most consequential decisions you must make is whether to settle with the other side or to litigate the dispute all the way to a judgment by a jury or judge. With each option comes particular potential benefits and drawbacks, which is why skilled legal representation matters so much. In your Fair Labor Standards Act case, a knowledgeable Atlanta wage and hour lawyer can be instrumental in identifying all of your possible upsides and risks and make a recommendation about the option that will best meet your needs.

In the context of civil lawsuits, one of the key benefits of settling early is the reduction of overall costs.

These calculations also play a role if your business is facing an investigation by the Labor Department’s Wage and Hour Division. In a new internal guidance bulletin, the division has announced that it will no longer seek liquidated damages in pre-litigation investigations.