FLSA Category Archives — Atlanta Employment Attorneys Blog Published by Atlanta, Georgia Employment Lawyers

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 One Restaurant’s Tip Pool Ran Afoul of the Fair Labor Standards Act

December 23, 2025 | Parks, Chesin & Walbert

Many employees in the restaurant industry rely on tips for a significant portion of their earnings. Many of these workers are also familiar with the process of pooling (or sharing) tips among all the tipped workers at their restaurant. Employers cannot simply construct tip pools however they want; federal law contains several restrictions on how employers pool tips. Whether you are an employer or an employee, if you have questions about the legality of your tip pool, contact a knowledgeable Atlanta tip-pooling lawyer for reliable answers.

According to a recent news release from the federal Wage and Hour Division, a Southern California restaurant was operating an illegal tip pool.

As background, the Fair Labor Standards Act does not set a limit on the percentage or amount of each employee’s contribution in valid mandatory tip pools. Instead, a tip pool’s validity depends on whether or not the employer takes the tip credit.

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.

Deciding Who Should (and Who Should Not) Share in an Employee Tip Pool

October 24, 2025 | Parks, Chesin & Walbert

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.

How to Decide Whether a Worker Should (or Should Not) Be Included in a Tip Pool

October 10, 2025 | Parks, Chesin & Walbert

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.”

The Impact New Circuit Court Rulings May Have on the Process of Certifying FLSA Collective Actions

September 30, 2025 | Parks, Chesin & Walbert

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.