Articles Posted in FLSA

Currently, the law allows restaurant employers to pay employees a base rate below the mandatory minimum wage as long as those workers ultimately end up receiving total compensation that works out to be more than the minimum hourly requirement (which, here in Georgia, is $7.25.) If you find it necessary to pursue this kind of minimum wage lawsuit (or defend against one,) it’s important to recognize the many federal rules of procedure that may play a role in your case. Ensuring that the rules of procedure do not trip up your case (or your defense as an employer) is one area where a skilled Atlanta wage and hour lawyer can be invaluable.

Here’s a recent example from federal court minimum wage action to illustrate what we mean.

The plaintiffs were a group of servers at a high-end restaurant. Their employer charged customers a preset gratuity that it automatically added to diners’ bills and then split those “service charges” among the servers. In addition, the servers also received a base pay of $5.65 per hour.

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In an important new ruling, the U.S. Supreme Court recently clarified the standards under which a worker does (or does not) qualify as a salaried exempt employee for purposes of overtime compensation. The 6-3 decision in favor of an oil rig worker clarifies that just because an employee earns a very high income, that does not automatically mean that he/she is an exempt employee. Regardless of how much you make, if you think that you meet the legal standards for a non-exempt employee, then you may be entitled to overtime pay and if your employer didn’t compensate you accordingly, you potentially can, with the aid of the right Atlanta unpaid overtime lawyer, win compensation in a Fair Labor Standards Act lawsuit.

The worker, M.H., worked as a tool pusher on an offshore oil rig. That job typically entailed the employee working 12-14 hours per day, seven days per week for a stint of four weeks, followed by four weeks off. The employer paid the pusher a daily rate of $963. All totaled, the worker earned more than $200,000 annually.

Neither the worker nor the employer argued that 29 CFR 541.604(b) applied to the pusher’s circumstance. That’s the federal regulation that says that if a worker receives extra pay based on his/her work hours, he/she can still be an exempt employee so long as there was a “reasonable relationship” between the worker’s periodic salary and the amount the worker actually earned each period.

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Today, remote work is more common than ever before, with much of explosion coming in the last 2-3 years. With that vast growth of people working from home comes new and different ways that employers can run afoul of federal wage and hour laws. If you’re a non-exempt employee working from home and your employer has denied you the leave, breaks, or other benefits that federal law mandates, check with a knowledgeable Atlanta wage and hour lawyer to find out how best to protect yourself.

Earlier this month, the U.S. Labor Department’s Wage and Hour Division (WHD) issued an important new “field assistance bulletin” document discussing this cutting-edge issue implicating the Fair Labor Standards Act, break rules, and remote workers who are non-exempt employees.

Field assistance bulletins are documents that lack the force of a statute or a regulation, but they do represent important reflections of Labor Department policy and the federal government’s view on the correct interpretation of various laws and/or regulations.

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If your employer has denied you overtime pay that you earned, you potentially have several possible legal options. You can seek compensation individually, you can initiate a class action, or you can pursue a collective action under the Fair Labor Standards Act. Determining which avenue makes the most sense can be a complicated and nuanced legal determination, so make sure you get the advice you need from an experienced Atlanta unpaid overtime lawyer before you start.

Earlier this month, one north Georgia nurse achieved an important success in her unpaid overtime case, successfully persuading the federal district court in Atlanta to approve her collective action.

The nurse was a Gwinnett County woman who worked as a “medical management nurse” for a major insurance company. Her main duty (along with the primary duty of several colleagues with various titles) centered on performing medical necessity reviews for the employer. That entailed “reviewing medical authorization requests submitted by healthcare providers against pre-determined guidelines and criteria for insurance coverage.”

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In wage and hour law, as with any area of the law, there are issues that arise with elevated frequency at certain moments in time. (For example, a few years ago the courts saw a flurry of employee-versus-independent-contractor misclassification cases involving exotic dancers.) More recently, an issue before multiple different courts involves employers taking automatic meal-break deductions, regardless of whether the workers got their full break (or any break at all) or not. When this happens, it may constitute a Fair Labor Standards Act violation for which you may be entitled to compensation. An experienced Atlanta wage-and-hour lawyer can tell you more about whether your situation represents a violation of the law.

One of the most recent incidents occurred to our north, where Ohio workers initiated a class action against their employer, a medical company that owns hospitals, rehab centers, and clinics. According to the workers, the employer had a practice of automatically deducting 1/2 hour from their hours to account for each worker’s meal break. The alleged problem was, however, that the realities of the workplace (especially during periods of understaffing) meant that workers often had to work through lunch or were able only to take abbreviated meal breaks. Even when those circumstances arose, the employer still took the automatic 30-minute deduction, according to the complaint.

On that basis, the workers alleged that the employer violated the FLSA by failing to pay overtime wages the workers earned. The class that the workers proposed was an expansive one; namely, “all current and former hourly, non-exempt direct care employees of defendant who had a meal break deduction applied to their hours worked in any workweek where they were paid for at least forty (40) hours of work.”

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An ongoing case in federal court in Macon represents a potentially important data point in an emerging area of Fair Labor Standards Act misclassification litigation: lawsuits between big agribusiness entities and the farmers with whom they work. These farmers are typically classified by the agribusiness companies as independent contractors, but now the farmers are suing, alleging that they actually are employees. As with any industry or field of business, if you think you’ve been illegally classified as an independent contractor, you should get in touch with an Atlanta employment misclassification lawyer right away.

The workers making up the class were a group of chicken farmers. The purported employer was a poultry processing company (the third largest in the country) that classified the farmers as independent contractors.

The farmers argued that the evidence they presented demonstrated a relationship where the poultry company retained an extremely high degree of control over the farmers, which is generally a hallmark of an employee-employer relationship, not an independent contractor-principal one. Although the company promised the farmers independence, it actually held the reigns over “virtually every aspect” of the farmers’ operations, according to the complaint. This allegedly included demanding specific “feed, medication, vaccinations”, and more, including barns.

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Employers celebrating the holidays with company-wide parties are increasing in numbers. While not at 2019 levels, research shows that, in 2022, more than half are having in-person events. With office holiday parties returning, so too are the legal risks that run concurrently with them. Whether you’re an employer or an employee, it is important to acknowledge that the company holiday party can violate the law in more ways than you might have considered. For employers, a skilled Atlanta employment lawyer can help you keep your party legally compliant. For employees harmed as a result of these kinds of violations, the right legal counsel can be invaluable in protecting your legal options related to those violations.

The Chicago-based firm of Challenger, Gray & Christmas conducts an annual survey of employers regarding holiday parties. The firm’s 2022 survey revealed a massive uptick in in-person events, rising from 27% in 2021 to 57% this year. While not at 2019’s high (75%,) the 2022 number approaches where employers were in 2018 (65%.)

Holidays carry a unique set of risks for employers and employees alike. Especially in recent years, employers and employees alike have become more aware of the risks of sexual harassment at company holiday parties, especially when those events also involve the availability of alcoholic beverages.

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Many workers probably know that they can pursue legal action if they incur retribution from their employer for speaking out against discrimination or harassment. However, Title VII isn’t the only law with a prohibition against retaliation. You may also be entitled to hold your employer accountable if they punished you for taking part or being “about to” participate in opposing illegal practices under the Family and Medical Leave Act or the Fair Labor Standards Act. If that’s happened to you, you should contact a knowledgeable Atlanta retaliation lawyer to discuss your situation.

While not a case from Georgia, a recent retaliation matter in the federal Third Circuit Court of Appeals shows how broad the coverage of the FLSA’s anti-retaliation provision can be.

The events culminating in the decision started in early 2019. That was when M.M., a former employer at an oil and gas production corporation, filed a class action complaint under the FLSA. The case accused the employer of failing to pay overtime compensation that the workers had earned.

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Many workers’ work schedules vary from week to week, both in terms of schedules and the total number of hours worked. The law allows employers whose employees work fluctuating workweeks several options for compensating those workers. Other methods for paying fluctuating-workweek employees, however, run afoul of the Fair Labor Standards Act. A knowledgeable Atlanta wage and hour lawyer can help determine if your method is compliant with the law and, if not, what the next steps should be.

While not technically a fluctuating-workweek matter, a recent federal court case from Pennsylvania offers an example of an employer who dealt with an employee’s changing schedule in a way that was permissible under the law.

The employee, S.W., was a direct care worker working for a home care company. Before she started with the employer, she signed a “Rate Sheet” that said her pay would be $11 per hour. The sheet, however, also said that her hourly wage could change if her hours went up or down.

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For many workers in this so-called “gig” economy, one of the biggest issues they (and the entity that retains their services) must confront is whether that worker is an independent contractor (who is not covered by many of the protections of the Fair Labor Standards Act) or an employee (who, unless exempt, generally is covered by the law.) Often, these classifications are inappropriate and the worker in question, based on the nature of his/her job, qualifies as an employee, not an independent contractor. When that happens, you may have a claim for compensation wrongfully denied to you, meaning you should get in touch with a knowledgeable Atlanta worker misclassification lawyer right away to discuss your circumstances.

A new proposed rule that the U.S. Department of Labor announced earlier this month could make it harder for employers to classify workers as independent contractors. The new rule seeks to limit independent contractor status only to those workers who, “as a matter of economic reality, are not economically dependent on their employer for work and are in business for themselves,” according to the Labor Department.

The existing rule has five “economic realities” to guide the classification of workers as independent contractors versus employees. The rule split those five into two “core factors,” which were the nature and degree of the hiring entity’s control over the work and the worker’s “opportunity for profit or loss,”  and three lesser factors, which were the degree of skill the work required, the extent to which the hiring entity-worker relationship was or was not a permanent one, and whether the worker’s work was part of an integrated unit of production.

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