Articles Posted in FLSA

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.

Continue reading ›

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.

Continue reading ›

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.

Continue reading ›

Restaurant work is often fast-paced and can be hectic. Providing quality service to customers requires a high degree of teamwork and can demand that workers wear many “hats.” This may potentially create some gray areas when it comes to tip pools. If you have questions about who should — and should not — participate in a tip pool, you should consult with a knowledgeable Atlanta wage and hour lawyer.

One example of this comes from a letter to the Wage and Hour Division (WHD) from earlier this year. In the scenario, the business was a “quick service restaurant.” At the restaurant, employees worked on a line preparing and assembling the food the customers picked out, then the customers paid for their food at the end of the line before finding a table in the dining area. (Fast-casual Mexican establishments like Chipotle and Qdoba are examples of a similar type of quick service restaurant.)

At the restaurant, all team members received a cash wage at or above the applicable minimum wage. The restaurant nevertheless allowed customers the option to leave a tip, either on their credit cards or in a tip jar. The restaurant subsequently pooled the tips and split the pool among its employees.

Continue reading ›

One of the thorniest areas of Fair Labor Standards Act law concerns tipped employees. Disputes involving tipped workers are among the most frequent to arise. One area where difficulties may emerge is when an employer establishes a mandatory tip pool. While some workers, like servers, might obviously be included in a tip pool, other employees’ jobs might make their status less clear. If you are an employee or an employer with a tip pooling question, be sure you get the knowledgeable information you need by speaking to a knowledgeable Atlanta wage and hour lawyer.

A recent Wage and Hour Division (WHD) opinion letter is a reminder that, when it comes to mandatory tip pools, the key is not just what task an employee does, but the context in which they perform it.

The employer was a seafood restaurant that offered freshly shucked oysters from an oyster bar. At this restaurant, the employer stationed the oyster shuckers behind the eatery’s bar alongside its bartenders, where they engaged “with customers by sharing and detailing oyster offerings, making suggestions regarding the oyster offerings, and fielding other questions about the different options, while preparing the oysters for and in front of the customers.”

Continue reading ›

The Fair Labor Standards Act does not authorize class actions brought by groups of plaintiffs. Instead, the FLSA has a unique procedure under which groups of employees may join in civil litigation — the collective action. One of the critical crossroads in a potential collective action is the juncture where the judge decides whether or not to issue notice of the suit to similarly situated employees (and thereby give them the option to join the suit). With several new federal appeals court decisions in recent months and years, the standard for when to authorize notice is evolving. If you have questions about your FLSA matter and the viability of collective status, you should get in touch with an Atlanta collective action lawyer.

One of the more recent developments in this area occurred in the Seventh Circuit Court of Appeals in August.

The employee in that case, M.R., was a woman in her 50s who worked in a sales capacity for an Indiana-headquartered pharmaceutical company. When the employer allegedly passed her over for a managerial role (in favor of a much younger, less experienced candidate), the woman launched an age discrimination lawsuit. Specifically, she contended that her rejection was part of the employer’s pattern of passing over older candidates in favor of promoting younger, less qualified ones.

Continue reading ›

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.

Continue reading ›

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.

Continue reading ›

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.

Continue reading ›

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.

Continue reading ›

Contact Information