Atlanta Employment Attorneys Blog

Default Judgments and FLSA Lawsuits in Federal Court

December 18, 2024 | Parks, Chesin & Walbert

An employer will usually vigorously litigate a lawsuit alleging that it violated the Fair Labor Standards Act. Sometimes, though, the employer will not act. The deadline for filing passed with no answer… no other pleadings… nothing. When that happens in an unpaid overtime lawsuit, the worker may pursue something called a “default judgment.” Viewing this circumstance as the equivalent of an “uncontested layup” in basketball can be tempting. However, just as a basketball player does not automatically get two points when he/she has an uncontested layup opportunity, a worker does not automatically get a judgment in his/her favor solely because the employer defaulted. There are ways to mess up, even when the other side fails to contest. Having a highly skilled Atlanta wage-and-hour lawyer on your side is one way to avoid falling victim to these procedural hurdles.

For example, we can look at a recent unpaid overtime case involving a convenience store manager who was a non-exempt employee.

One of the keys to turning a motion for default judgment into an actual default judgment is making sure your court pleadings are complete and sufficiently specific. In an unpaid overtime case, that means establishing, among other things, personal jurisdiction, subject matter jurisdiction, and venue.

A Federal Appeals Court Has Taken Down the 80/20/30 Rule for Applying the Tip Credit

December 10, 2024 | Parks, Chesin & Walbert

Last month, an important federal court ruling wiped out a new U.S. Department of Labor Rule expanding salaried employees’ eligibility for overtime compensation by narrowing employers’ ability to apply certain exemptions. A few months earlier, a different federal court ruling from Texas also significantly impacted wage and hour law, but on a different set of employees. This ruling targeted a 2021 DOL rule regarding the tip credit. These rulings are crucial reminders that, especially under the current legal landscape, the rules and standards of wage and hour law are prone to change. With that in mind, you must work with a knowledgeable Atlanta wage and hour lawyer to ensure that your pay practices are compliant with (or taking advantage of) all the latest developments in the law.

The tip credit is the mechanism that allows employers to pay tipped workers a base hourly wage of as little as $2.13 per hour so long as the tipped worker’s base wage plus tips equals or exceeds $7.25 per hour. In 2021, the Labor Department established a rule saying that an employer could only apply the tip credit to workers if they spent 80% (or more) of their time doing tip-producing work (like serving tables in a restaurant, for example.)

The rule also established that these workers could spend no more than 20% of their time doing “directly supporting” work. (That latter category includes things like cleaning and setting tables or making coffee and tea.) An additional part of the rule said that workers could spend no more than 30 consecutive minutes doing this supporting work, or else the employer could not use the credit.

Employers’ Recordkeeping Obligations Under the FLSA and the Dangers of Not Making Court-Ordered Pay Record Disclosures

November 29, 2024 | Parks, Chesin & Walbert

Under the terms of the Fair Labor Standards Act, employers have numerous obligations. In addition to paying covered workers a minimum wage and time-and-a-half overtime compensation, employers also have an obligation to keep to an array of records related to their workers, the time they worked, and the compensation they received. Failing to keep these records can be very damaging to an employer. For answers to questions about the FLSA’s recordkeeping requirement, get advice from an experienced Atlanta wage-and-hour lawyer.

The FLSA recordkeeping troubles of a steel mill in South Alabama began after a group of its employees discovered what they believed to be a “series of wage-and-hour violations.” Those alleged transgressions included not paying the workers for all the hours they worked and shorting them on overtime compensation.

The case was a complicated matter, implicating things like multiple regular rates of pay that “changed based on the shift worked, the way time was rounded, the level of work, and the company’s monthly incentive plan.” (The employees’ overtime claims hinged, in part, on whether or not the employer assigned the correct regular rate to all the employees’ hours.)

When an Employee’s Travel is (or is Not) Compensable Under the FLSA

November 25, 2024 | Parks, Chesin & Walbert

Millions of Americans commute to and from work every day. For many others, getting to work is more complex, involving extended travel and multi-day (or weeks-long) stays away from home. While the Fair Labor Standards Act does not include daily commuting to and from home among the hours for which employers must compensate employees, the rules are different when overnight stays are involved. These employment arrangements may create situations where travel time must be compensated. If you have questions about travel time and the FLSA, talk to a knowledgeable Atlanta wage-and-hour lawyer to get the accurate answers you need.

Recently, a federal appeals court in the Midwestern United States delved into this issue of travel time and the FLSA.

The employer in the lawsuit was an Indiana-based equipment installation company. Working for the company involved driving to client sites far from home. Employees would remain at their sites from a few days to several weeks. Other than per diems and mileage reimbursements, the employer did not compensate its employees for their travel time.

A New Federal Court Ruling Has Blocked the Implementation of the Rule Raising Minimum Salary Floors for FLSA Exemptions

November 15, 2024 | Parks, Chesin & Walbert

In April, this blog covered the publication of a new Final Rule from the U.S. Department of Labor regarding the executive, administrative, professional, outside sales, or computer employee (EAP) and the highly compensated employees (HCE) exemptions to the overtime provisions of the Fair Labor Standards Act (FLSA). The new rule would have moved millions of workers from exempt to non-exempt status. Following a decision issued by a federal court in Texas earlier today, that rule’s future is very uncertain. Whether you are a worker or an employer, the best way to ensure you are proceeding under the correct interpretation of the FLSA is to work closely with an experienced Atlanta wage and hour lawyer.

The lawsuit, which took place in the federal Eastern District of Texas, consolidated two actions, one launched by a local chamber of commerce (Plano, Texas) and the other by the State of Texas. The pair argued that the DOL exceeded its statutory authority by promulgating the new EAP/HCE exemption rule.

An earlier ruling from the court enjoined implementation of the rule… but only with regard to employees of the Texas state government. The ruling from earlier today established a nationwide injunction, meaning that the rule is rolled back in its entirety across the country.

The Situations that Do (and Do Not) Entitle a Father-to-Be to FMLA Leave Before the Child is Born

November 8, 2024 | Parks, Chesin & Walbert

Welcoming a new child is often a joyous experience. It also can involve challenges that create a need to miss work. Taking an absence under the Family and Medical Leave Act may be an option for some. However, Employers and employees should note that not all pre-birth absences are covered by the FMLA. If you have questions about FMLA leave for pre-birth needs, you should consult a knowledgeable Atlanta FMLA lawyer to get sound and reliable answers.

The standard for pregnant moms is often relatively straightforward. If a pregnant employee is experiencing pregnancy-related medical symptoms that necessitate an absence from work (such as extreme morning sickness or doctor-mandated bedrest,) the mother-to-be may use FMLA leave for that absence. The employee may also use FMLA leave for prenatal medical care appointments.

For fathers-to-be, the situation is different and, therefore, the law is different. A recent FMLA interference and retaliation case from the 11th Circuit Court of Appeals illustrates some of the limitations regarding expectant dads and FMLA leave.

How Procedural Requirements May Help – or Doom – Your Unpaid Overtime Case in Georgia

October 31, 2024 | Parks, Chesin & Walbert

Claiming “time of the essence” is a common marketing technique. Sellers use deadlines to create a sense of urgency and motivate buyers to act. In sales, a deadline may not be real; it may be merely an artificial tool to pique the customer’s emotions. In law, time really is of the essence in many settings, including matters involving Fair Labor Standards Act violations. A lawsuit filed after the statutory deadline is vulnerable to a motion to dismiss that will, barring special circumstances, likely end the case with no further litigation, no trial, and no award of damages. Whether you are a worker seeking to ensure a timely filing or an employer seeking to terminate a case that was filed too late, obtaining representation from an experienced Atlanta wage and hour lawyer can be an essential step en route to success.

Absent special circumstances, workers pursuing FLSA claims generally must file within either two or three years. If the worker has presented a willful violation of the law, then the law allows three years to bring that case. If the violation is not an allegedly willful one, the worker has only two years in which to sue. If you are the party seeking relief, filing after the limitations period has elapsed is potentially catastrophic to your case. Conversely, a filing that was outside the limitations period can be a huge boon if you are an employer facing an FLSA claim. In each scenario, a motion to dismiss can terminate the case right away.

A federal unpaid overtime case from Miami is a good illustration. Although not taking place in Georgia, the Miami parties were subject to the same set of requirements under the federal rules as parties to a federal lawsuit in Georgia would face, including satisfying the statute of limitations.

What to Do (and Avoid Doing) to Minimize Your Risk of Liability Exposure for Illegal Retaliation

October 25, 2024 | Parks, Chesin & Walbert

Decisions made on impulse or driven by emotions often make bad situations worse. As an employer, dealing with your alleged Fair Labor Standards Act violation the wrong way can significantly expand the legal liability you may face. A minimum wage or unpaid overtime violation is one thing; a minimum wage or unpaid overtime violation plus a violation of the law against retaliation is unequivocally worse. Knowing what to do (and, often, what not to do) when faced with a FLSA claim is crucial. An experienced Atlanta wage and hour lawyer can help you mitigate your existing liability exposure, and avoid unnecessary additional forms of exposure, as well.

Some missteps are born of a fierce urge to tell “your side of the story.” While sometimes understandable, this can lead to serious trouble.

Take, for example, a recent FLSA retaliation action from New England. The case arose after the president of a Vermont excavation company fired one of his truck drivers following a dispute about overtime pay. The driver complained to the Wage and Hour Division. That agency’s investigation ended with a settlement calling for the employer to compensate the driver for back pay and unlawful discharge.

What Will (and Won’t) Demonstrate Pretext in a Title VII Employment Discrimination Case

October 17, 2024 | Parks, Chesin & Walbert

In employment discrimination cases, most employers will present some sort of facially valid basis for their actions. The crux of many cases, as a result, can come down to the worker’s ability to show that the employer’s stated reason was just a pretext for discrimination. Employees who fail to do this often find themselves on the losing end of a motion to dismiss or a motion for summary judgment. Whether you are the worker or the employer, it is vitally important to understand what is (and is not) a legitimate, nondiscriminatory reason for an adverse employment action, and what is (and is not) a valid method for establishing pretext. For answers to these questions and more, be sure to get reliable answers by consulting an experienced Atlanta race discrimination lawyer.

A recent race discrimination case taking place to our south shows how employees can go astray when trying to demonstrate pretext.

The employee, L.B. was an assistant chef with a steak-and-seafood restaurant located just west of Augusta. A new general manager (hired shortly after L.B.) allegedly treated the chef, an African American woman, less favorably than white coworkers. This included refusing to promote the chef to “lead chef” or providing training opportunities while training white workers and hiring new white workers to staff the lead chef position, according to the woman’s lawsuit.

Breastfeeding Awareness Month Has Ended, But It’s Still the Right Time to Focus on the Requirements of the PUMP Act and the FLSA

October 8, 2024 | Parks, Chesin & Walbert

National Breastfeeding Awareness Month may have ended a few weeks ago (August 31) but any time is a good time for employers and employees who are new (or expecting) mothers to familiarize or re-familiarize themselves with the rights and responsibilities that federal and state laws lay out for workers who need to nurse or express milk (a/k/a pump) during the work day. If you have questions about this aspect of the law, a knowledgeable Atlanta wage and hour lawyer is an essential resource for obtaining reliable answers and ensuring compliance.

Some of the federal requirements in this sphere are well-known, such as the obligation to give nursing/pumping moms breaks to breastfeed/express milk and provide those moms with an appropriate space for this activity. (In other words, not a toilet stall in the office’s communal bathroom or a supply room with no lock on the door that coworkers enter frequently.)

Multiple recent federal class action lawsuits against fast-food employers have focused on the right to an appropriate pumping location.