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…
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.…
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…
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.…
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…
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…
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…
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…
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…
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…