Unpaid Overtime

A New Federal Overtime Regulation Stands to Alter the FLSA Exemption Status of Millions of Employees, According to the U.S. Labor Department

April 24, 2024 | Parks, Chesin & Walbert

Yesterday, the U.S. Department of Labor announced the publication of a new regulation governing the salary minimums applicable to certain exemptions under the Fair Labor Standards Act; namely, the executive, administrative, professional, outside sales, [or] computer employee” (a/k/a “EAP”) exemption and the highly compensated employee (HCE) exemption. According to DOL estimates, the new rule is a major departure from the previous rule, potentially moving as many as four million employees from exempt to non-exempt status. This change may significantly benefit those workers who become non-exempt. It also represents a critical decision-making juncture for employers. To ensure your business remains compliant with the FLSA in the face of the changing exempt-versus-non-exempt landscape, consult a knowledgeable Atlanta wage and hour lawyer.

The new rule is the result of a months-long rulemaking process. Last September, the DOL published a proposed version of the regulation. The proposed rule called for increasing the minimum salary level for qualifying as an exempt EAP employee to $1,059 per week (or $55,068 annually.) The department chose that figure because it represented “the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region.” (By the way, that lowest region is here in the South.)

The proposed rule also called for raising the minimum salary for qualifying under the HCE exemption to $143,988 annually. That figure was equal to the “annualized weekly earnings of the 85th percentile of full-time salaried workers nationally.”

Resolving Ambiguities in the Settlement Agreement from Your Georgia Unpaid Overtime Case

April 17, 2024 | Parks, Chesin & Walbert

Unpaid overtime lawsuits pursued under the Fair Labor Standards Act are often complex matters. That’s true even if the parties avoid a trial and instead settle their dispute. Getting what you deserve from your settlement requires several crucial things, including negotiating an agreement that meets all your essential needs, executing an agreement that is clear, detailed, unambiguous, and complete, and taking all necessary actions to uphold your rights obtained in that agreement. As you work toward completing any of these steps, representation from an experienced Atlanta unpaid overtime lawyer can be vital to your success and protecting your interests.

A recent case from the federal courts is a relevant example. The lawsuit, which the workers filed in the Northern District of Georgia in 2019, alleged claims of unpaid overtime in violation of the FLSA. Although the workers originally sought more than $800,000 in damages, they and the employer eventually agreed to a settlement of $60,000. The agreement called for the employer to pay $10,000 upfront (within seven days) and then pay $1,000 each month for 50 months.

The contract also stated that if the employer didn’t pay, paid late, or otherwise defaulted on its obligations, the workers were required to contact the employer’s lawyer and give the employer seven days to cure the default. If the employer did not respond satisfactorily within seven days, then the workers were entitled to a $100,000 judgment against the employer and its owner.

A New Independent Contractor Classification Rule Has Taken Effect: What It Means for Your Job… or Your Business in Georgia

April 11, 2024 | Parks, Chesin & Walbert

One month ago today, a new U.S. Department of Labor rule updating the standard for classifying workers as employees or independent contractors under the Fair Labor Standards Act became effective. The new rule has received extensive coverage, with some commentators praising it as a needed expansion of workers’ rights, while others disparaged it as unfairly restricting opportunities for freelancers. Regardless of one’s perspective, the rule is now effective and employers and workers alike should familiarize themselves with its elements and its impact on their jobs or businesses. Whether you’re a worker or an employer, classification errors under the FLSA can potentially be highly damaging, which is why it’s vital to consult a knowledgeable Atlanta wage and hour lawyer about your situation.

As this blog discussed in October 2022, the new rule utilizes the “economic realities” test to determine if a worker is an employee or an independent contractor. The rule calls upon decision-makers to make assessments using six economic realities. The 11th Circuit Court of Appeals (which covers Georgia, Alabama, and Florida,) described those six in 2013 as:

the degree to which the hiring entity has a right to control how the work is performed;

A Nanny’s Overtime Case Sheds Light on the Extent of the Domestic Service Exemption’s Application

February 15, 2024 | Parks, Chesin & Walbert

Domestic workers (like nannies and housekeepers) are a diverse group. Even fictional depictions range from Julie Andrews’ Mary Poppins to Robin Williams’ Mrs. Doubtfire. In real life, these workers often put in long hours, working more than 40 hours a week. Those facts may mean that a nanny or housekeeper may be entitled to substantial overtime compensation if they qualify as a non-exempt employee. If you have questions about the Fair Labor Standards Act’s overtime requirement or the domestic service exemption, consult an experienced Atlanta wage and hour lawyer.

A South Florida nanny’s recent unpaid overtime case clarified the breadth/narrowness of the domestic service exemption in federal cases in Georgia and two surrounding states.

The worker began as a full-time nanny and housekeeper for two South Florida parents in 2019. The nanny worked overnight shifts for five consecutive nights, totaling 79 hours per week. The parents paid the nanny a flat rate of between $800 and $880 weekly.

The Consequences of Employees Working Off the Clock

December 8, 2023 | Parks, Chesin & Walbert

Workers can encounter many forms of misconduct that amount to violations of the Fair Labor Standards Act. One of these issues relates to work performed off the clock. Whether you are an employee or an employer, if you have questions about unpaid hours and the FLSA, be sure to get in touch with an experienced Atlanta wage and hour lawyer to understand thoroughly your rights and responsibilities.

A major insurance company — whose CGI mascot is widely popular and seemingly ubiquitous on some television sports broadcasts — has found itself accused of multiple FLSA violations in the last few years, with the most recent action proceeding just to our south in the Middle District of Georgia federal court.

The employees were sales representatives who worked in the insurer’s call center in Macon. They alleged that the employer improperly forced them to perform essential job-related tasks before or after hours or during breaks, including booting up and shutting down their computers, responding to emails during meal periods, and staying late if their computer terminals malfunctioned during the day.

The Many Details That Go Into Successfully Settling a FLSA Lawsuit in Georgia

November 22, 2023 | Parks, Chesin & Walbert

In a lot of civil cases, settling the matter is pretty straightforward. The parties will work out mutually agreeable terms, someone will prepare a written settlement agreement, and barring exceptional circumstances, the court will accept the settlement and dismiss the case. FLSA cases — and settlements — are a bit different and somewhat more complicated. There is a wider array of situations where, even if the parties have genuinely agreed, the court may reject a settlement. Working with a knowledgeable Atlanta wage and hour lawyer can enhance your odds of avoiding this kind of money and time-consuming situation.

When parties to a FLSA case filed in a federal court in Georgia, Florida, or Alabama seek to settle, they must comply with what the 11th Circuit Court of Appeals wrote in the 1982 case of Lynn’s Food Stores, Inc. v. United States. The Lynn’s Food ruling says that any acceptable settlement must be a “fair and reasonable resolution of a bona fide dispute over FLSA issues.”

One example of a settlement executed correctly comes from the federal court in Orlando, Florida. The employee was a handyman who worked for a local social services organization for two years and two months. During that time, the handyman allegedly worked more than 40 hours a week on several occasions. Despite this, the employer never paid him overtime compensation, according to his complaint.

How a Georgia Employer’s Methods for Paying Workers Ultimately Cost It Tens of Thousands of Dollars

November 8, 2023 | Parks, Chesin & Walbert

What started as a dispute over a few hundred dollars ended with an Atlanta-area employer paying nearly $40,000. That outcome is a useful lesson to employers on several fronts. One, always maintain legally compliant pay records, including pay rates, hours worked, and sums paid. Two, always make sure that you are paying your non-exempt workers proper time-and-a-half overtime when they work more than 40 hours in a week. And three, if you feel the urge to pay wages that you owe under the Fair Labor Standards Act in a way that smacks of revenge… don’t. Just issue a check and move on. It’ll be cheaper and better for your business in the long run. If you have any questions about your rights and responsibilities under the FLSA, make sure you consult with a knowledgeable Atlanta wage and hour lawyer.

The original dispute, which received relatively broad coverage as a result of its peculiar facts, pitted a Peachtree City auto repair shop against one of its former employees. The disagreement began after the employee, A.F., contacted the U.S. Labor Department’s Wage and Hour Division to complain that his employer had not paid him his final paycheck, which amounted to $915.

Rather than simply cutting a check, the employer obtained 91,500 pennies, covered them in automotive fluids, and then delivered them to A.F.’s driveway. To remove doubts regarding motivation, the employer stuffed the man’s pay stub in an envelope with “[expletive] you!” written on the outside. The pile of pennies weighed more than 500 pounds and took more than seven hours to remove from the man’s driveway.

An Unpaid Overtime Case from Atlanta Sheds Light on the Importance of Keeping Good Pay Records

October 24, 2023 | Parks, Chesin & Walbert

An Atlanta wrecker and towing service found itself in court after two drivers accused it of illegally failing to pay them the overtime compensation they were properly due under the Fair Labor Standards Act. The court’s summary judgment ruling in the case includes vital lessons for employers when it comes to the importance of maintaining clear and thorough pay records, as well as the risks involved in handing off FLSA compliance to a third party. If you’re facing an unpaid overtime claim (or pursuing one,) representation from a knowledgeable Atlanta wage and hour lawyer can be essential to your success.

The drivers typically worked 4-5 12-hour shifts each week. The employer paid its driver a straight commission weekly that was “calculated as a percentage of the total revenue they derived from the tows they performed that week.” For one driver that percentage was 30%, for the other it was 35%.

As noted above keeping clear, understandable, and accurate time and pay records for all employees can be crucial to any business.

Which Workers Are (and Aren’t) Exempt from Overtime Compensation as a Result of Their Executive Duties

September 18, 2023 | Parks, Chesin & Walbert

In the tragedy of Romeo and Juliet, William Shakespeare asked the timeless literary question, “What’s in a name? That which we call a rose / By any other name would smell as sweet.” Those lines highlight the truth that changing a name or a title does not, by itself, change the named item’s inherent identity and characteristics. This also can be true in employment law where, just because a job title sounds like a managerial role, the reality of the work you do every day may indicate that your job actually is something very different, which can matter a great deal when it comes to overtime compensation. If you have questions about exempt status or possible unpaid overtime, you should take the time to get reliable answers by contacting a knowledgeable Atlanta wage and hour lawyer.

Recently, this blog looked at the administrative exemption to the overtime requirements of the Fair Labor Standards Act. Today, we focus on another exemption that generates disputes with some frequency: the executive exemption. In many instances, these disputes involve managers at retail establishments who spend most of their workdays doing non-managerial work.

Last month, the 6th Circuit Court of Appeals (whose decisions guide federal cases in Michigan, Ohio, Kentucky, and Tennessee) considered one of these matters and ruled for the employer.

When an Employer Can — and Can’t — Use a Statutory Exemption Argument as a Stopper Against an Unpaid Overtime Claim

September 11, 2023 | Parks, Chesin & Walbert

In some ways, wage and hour law can be like the game of bridge. Each has various sets of rules that can layer on top of (or intertwine with) one another. In each setting, the difference between success and defeat often can come down to which side understands, utilizes, and deploys those concepts more effectively. If you have questions about the law of overtime compensation, be sure to get in touch with an experienced Atlanta wage and hour lawyer (who may or may not be able to help you with your bridge game.)

Why do we bring up bridge? In this instance, it’s because some employees of the world’s largest contract bridge league recently scored a win in their unpaid overtime lawsuit.

In 2018, the league reorganized its Field Operations Department, creating four new salaried roles: Area Manager, Mentor, National Tournament Director, and Associate National Tournament Director.