FLSA Category Archives — Page 2 of 15 — Atlanta Employment Attorneys Blog Published by Atlanta, Georgia Employment Lawyers

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.

What a New Federal Appeals Court Ruling Says About Personal Jurisdiction and FLSA Collective Actions

July 10, 2025 | Parks, Chesin & Walbert

A recent federal appellate ruling is likely a relief for some employers on the West Coast, and perhaps beyond. Although the 9th Circuit Court of Appeals’ opinion is only binding in several western states, it nevertheless represents the latest chapter in a growing trend among federal appellate courts. That trend suggests that, when employees undertake a Fair Labor Standards Act collective action lawsuit, the trial court must determine personal jurisdiction on a claim-by-claim basis, where each opt-in plaintiff must have sufficient ties to the employer’s business in that state. If you have questions about these types of lawsuits, it is advisable to consult with an experienced Atlanta collective action lawyer regarding your specific situation.

The plaintiffs in the 9th Circuit case were a group of current and former tipped employees of the restaurant chain Cracker Barrel, who sued their employer for violating the FLSA. Specifically, the servers alleged that the restaurant’s use of tip credits and its payment practices for tipped workers did not comply with the law’s requirements.

The employees sued in federal court in Arizona. In their court papers, the employees asked the court to certify a collective consisting of “all servers who worked for Cracker Barrel in states where it attempts to take a tip credit… over the last three years.”

How the FLSA’s Statute of Limitations Sunk One Employee’s Minimum Wage Violation Case

June 16, 2025 | Parks, Chesin & Walbert

A minimum wage case that recently came before the 11th Circuit Court of Appeals (whose decisions control federal lawsuits in Georgia, Florida, and Alabama) is an example of how employees with legitimate Fair Labor Standards Act claims can still lose if they proceed without counsel and get tripped up by procedural requirements such as the statute of limitations. The case and its outcome make for a noteworthy cautionary tale about the risks of proceeding without a skilled Atlanta minimum wage lawyer advocating for you and monitoring procedural deadlines like the statute of limitations.

The employee, M.M., worked at a pet store in Florida for approximately three weeks in August 2018.

According to the employee, she worked full-time as a certified veterinary technician at a salary of $35,000 per year. According to the pet store, M.M. was a part-time kennel technician.

Opting In, Opting Out, and the Differences Between Federal Class Actions and FLSA Collective Actions

May 30, 2025 | Parks, Chesin & Walbert

Recently, a Greene County employer found itself facing not one but two federal lawsuits related to its pay practices and overtime compensation. The pair of filings illustrates how misclassifying workers can have numerous, complex impacts, both on the employer being sued and on employees who must decide whether to join an existing Fair Labor Standards Act collective action or pursue a separate case. When making decisions as an employee about opting in or out, or as an employer defending these lawsuits, it is wise to consult with a knowledgeable Atlanta wage and hour lawyer who can offer essential advice about how best to proceed.

The Greensboro employer, M.S.G., was a project management consulting company that employed several engineers. Several of those engineers believed that the employer had underpaid them. Specifically, the engineers contended in a federal complaint that the employer had illegally misclassified them as overtime-exempt when, in fact, they were non-exempt and should have received time-and-a-half compensation for their overtime hours, whereas they actually received only their regular pay for those hours.

One of those Georgia engineers, R.S., sued in 2023. In June 2024, the federal District Court conditionally certified the case as an FLSA collective action.

The Salary Basis Requirement Within the EAP Exception… and How Even Highly Paid Workers May Be Entitled to Time-and-a-Half Overtime

May 23, 2025 | Parks, Chesin & Walbert

The rules the Fair Labor Standards Act sets up regarding time-and-a-half overtime compensation are often nuanced and can be complicated. Employers risk noncompliance when they fall into the trap of oversimplification. For example, paying a worker a large sum every week or month does not necessarily mean that the worker is exempt from overtime compensation. To ensure your (or your employer’s) pay practices are fully compliant, you should talk to an experienced Atlanta wage and hour lawyer.

A recent unpaid overtime case that began in neighboring Tennessee is a good example of how high earnings do not always equal exempt status for employees.

The case involved a professional pipe inspector. The inspector’s employer paid him a “guaranteed weekly salary” of $800 and an additional $100 per hour for each hour over eight he worked in a given week. The employer classified the inspector as salaried and did not pay him time-and-a-half overtime. That meant the inspector, who averaged 52 hours per week, received $100 per hour for all hours (and not $150 for hours 41 and above).

What a Brief Dive into Reddit Can Teach About the FLSA and the Requirements Surrounding Employers’ Handling of Pooled Tips

May 16, 2025 | Parks, Chesin & Walbert

The Reddit platform can be a source of amusement and distraction. Occasionally, it can also provide an opportunity for education. Take, for example, a post from earlier this week centering around a pay practices problem and tipped employees. While wholly unverified, the post highlights an example of how employers can violate the law if they are not mindful of the Fair Labor Standards Act’s requirements and why they should consult an experienced Atlanta wage and hour lawyer if they have any questions about handling employees’ tips.

According to the employee, her manager sent a group text message addressed to “all employees.” The manager, “Kelly”, informed her team that the “pooled tips we’ve gotten… won’t be distributed. Janice’s mom just passed away and they could use it more than we do at the moment.”

After reading that, many might wonder, “Can they do that legally?” In short, the answer is “probably not.”

The U.S. Department of Labor Makes an Important Statement About a 2024 Rule Related to Independent Contractor Classifications

May 9, 2025 | Parks, Chesin & Walbert

The U.S. Department of Labor has made multiple noteworthy changes in the wake of the transition from President Biden to President Trump in January. The changes remind employers and employees alike of the high impact federal regulations have on wage and hour law. Employers and employees alike should be mindful of the effects of changes and the potential for more. That includes consulting a knowledgeable Atlanta wage and hour lawyer for answers to your questions about your business’s (or your employer’s business’s) compliance.

One of the newest changes took place at the beginning of this month, and it involves backing away from an independent contractor classification rule established last year.

On May 1, the DOL’s Wage and Hour Division issued a new Field Assistance Bulletin (No. 2025-1), which indicated that the department will no longer follow “the 2024 Rule’s analysis when determining employee versus independent contractor status in FLSA investigations.” Instead, according to the bulletin, the division will use an earlier test.

The FLSA’s Overtime Provisions and the ‘Motor Private Carrier’ Exemption

April 30, 2025 | Parks, Chesin & Walbert

The Fair Labor Standards Act established a broad right for workers to receive a minimum wage and overtime pay. The statute also has numerous exemptions to the right to overtime pay. While workers and employers are probably familiar with exemptions for executive, administrative, professional, computer, and outside sales employees, those are not the only ones. Identifying and understanding the breadth of all exemptions can be crucial to avoiding a FLSA violation. Talk to an experienced Atlanta wage and hour lawyer if you have any questions about FLSA exemptions or exempt versus nonexempt classifications.

In addition to the exemptions listed above, which Congress outlined in Section 13(a)(1) of the FLSA, further exemptions exist under Section 13(b)(1). Section 13(b)(1) exemptions pertain only to overtime compensation, whereas Section 13(a)(1) exemptions extend to overtime and minimum wage requirements. Examples of Section 13(b)(1) exemptions include individuals who work in the trucking, rail, and air carrier industries.

A recent unpaid overtime dispute from the federal courts focused on those Section 13(b)(1) exemptions. The employer was an entity that sold, delivered, and installed “screwpiles used in the construction of foundations.” The employees were a pair of welders. In addition to welding, welders were also responsible for “loading trailers, securing loads for transport, and inspecting trucks for safety items such as lights, tires, brakes, and horns.”

The Portal-to-Portal Act, ‘Integral and Indispensable’ Activities, and When Travel Time is Compensable Under Federal Law

April 24, 2025 | Parks, Chesin & Walbert

Employers and employees need to be aware of the requirements of the Fair Labor Standards Act. This allows workers to be sure they receive all the wages they deserve and permits employers to be confident that they are compliant with federal law. Whether you are a worker or an employer, if you have questions regarding the FLSA and related statutes (like the Portal-to-Portal Act), get reliable answers by seeking out the advice of an experienced Atlanta wage-and-hour lawyer.

One of the things the Portal-to-Portal Act requires for time to be compensable is that the activity was “integral and indispensable.” A recent unpaid overtime case from the 11th Circuit Court of Appeals provides a clear example of what it means to be “indispensable.”

The case involved the pay practices of a commercial plumbing company based in Alabama. The company had a shop in Shelby County that housed company-owned trucks, parts, and supplies. Although many plumbers stopped at the shop on their way to job sites, the employer followed a policy that employees’ compensable time started when they arrived at the job site, not when they arrived at the employer’s shop.