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…
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…
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.…
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…
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.…
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…
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…
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…
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…
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…