A law student once joked with his law professor, who was discussing a topic that involved math skills, by interjecting, “Excuse me, sir. I must object. I was told there’d be no math (in law school).” While perhaps a good source of humor after a long day of legal studies, it’s actually not true. Many lawyers are very adept at math, including your Georgia wage-and-hour attorney. Compliance with the Fair Labor Standards Act means understanding many things, including some math. It also means knowing which mathematical calculation methods for determining compliance with minimum wage and overtime rules are allowed by the law, and which aren’t. In the case of a salesman who received commissions, the law required allocating his commissions to the month when he earned them, rather than just doing a calculation that averaged the salesman’s commissions across his entire 12-month period of employment. Continue reading ›
Articles Posted in FLSA
FLSA Retaliation Claims Against Individuals Associated with an Employer
A recent employment law ruling from the Ninth Circuit Court of Appeals has created quite a bit of buzz among legal observers. In that case, the Ninth Circuit decided that the Fair Labor Standards Act’s prohibitions against retaliation were broad enough to allow a dairy worker to sue his employer’s outside attorney for contacting immigration enforcement and notifying them about the employee’s undocumented status.
Eleventh Circuit Upholds Lower Court, Denies Valets the Right to Sue over Alleged Unpaid Tips
In an important recent ruling, the 11th Circuit Court of Appeals has affirmed the decision of an Atlanta-based federal District Court, denying an employee the opportunity to pursue a class action against her employer for keeping some of the employees’ tips. The key to the employer’s victory in both courts was the limitations on private lawsuits contained in the Fair Labor Standards Act’s language. Since that law only allowed private lawsuits in cases of unpaid overtime or failure to meet the minimum wage, neither of which occurred in this case, the employee had no legal right to pursue a private class action.
Staffing Agency Can’t Use Arbitration Clause in Employment Contract to Stymie Workers’ FLSA Class Action
A major national staffing services company could end up in legal hot water regarding the way it handled its time-keeping practices for some of its remote workers. A class of “virtual call center” employees launched a collective action accusing the company of violating the Fair Labor Standards Act by failing to pay them for all of the time they worked. In an important recent step in the case, the federal district court for the Eastern District of Michigan declared the arbitration clause in the workers’ contracts to be invalid and unenforceable, short-circuiting the company’s efforts to obtain a dismissal and a court order compelling binding arbitration of the case.
Tennessee Cable Installers’ FLSA Class Action Goes Back Before Sixth Circuit After U.S. Supreme Court Ruling
A multi-million dollar class action case involving numerous Tennessee cable TV installers who were wrongly denied overtime pay will once again go before the Sixth Circuit Court of Appeals. In a very short order, the U.S. Supreme Court ordered the Sixth Circuit to take another look at the installers’ case in light of another case that, like the installers’ case, involved using statistical evidence to arrive at the amount of damages.
Eleventh Circuit: Proof of Employee’s Understanding of ‘Fluctuating Workweek’ Pay Dooms FLSA Claim
The Fair Labor Standards Act allows employers to use various different methods to pay employees while still remaining compliant with the law. One of these methods is the “fluctuating workweek method,” or paying a base weekly salary to an employee regardless of the hours the employee worked. The key to using this method and remaining in compliance with the law is establishing a clear understanding about how the employee will be paid. In a recent 11th Circuit Court of Appeals case of note to Georgia employers and employees, the employee’s testimony in a deposition proved that the required level of “clear understanding” existed in this case, and the employer was not in violation of the law’s overtime pay rules.
11th Circuit Allows Employees to Bring FLSA Collective Action and State Class Action in One Case
A recent ruling by the 11th Circuit Court of Appeals is an important one for Georgia employers and employees to note, since it may affect some potential minimum wage and overtime cases. In the new decision, the 11th Circuit decided that it would join numerous other circuits in concluding that the Fair Labor Standards Act does not prohibit employees from bringing a case that contains within it both a FLSA collective action and a state-law class action.
Georgia Employer Allowed to Keep Some of Employees’ Tips as Long as Employees Received Minimum Wage
A decision from a federal court in Atlanta this summer became the latest in a group to reject a recently created regulation by the U.S. Department of Labor declaring tips to be the property of employees in all circumstances, regardless of whether the tips were needed to raise the employee’s pay to a level that satisfied the minimum wage. The court decided that the plain language of the Fair Labor Standards Act is clear that employers are only required to hand over tip money when they pay a base wage below the applicable minimum wage.
Georgia Bodyguard’s $65K Damages Award in Unpaid Overtime Case Withstands Appeal
Recent court cases have addressed a steadily wider array of workers — from exotic dancers to NFL cheerleaders to home health workers to, most recently, a hip-hop music producer’s bodyguard — and whether those workers’ employment situations qualify them for the minimum wage and overtime protection of the Fair Labor Standards Act. The 11th Circuit Court of Appeals’ recent ruling in the bodyguard’s case upheld a lower court ruling in his favor, concluding that the guard’s employment situation clearly met the FLSA’s “economic dependence” standard for qualifying as an employee under the statute.
Federal Government Creates New Overtime Rules to Take Effect Later This Year
Georgia employers and employees will soon be operating by a new set of rules when it comes to overtime pay for certain salaried employees. On May 18, the White House and the US Department of Labor announced new rules that will greatly expand the range of salaried employees who qualify to receive overtime. The new rules more than double the salary cap for eligible employees and, according to the White House, make an additional 4.2 million workers eligible for overtime. The White House also expects the new rules to increase earnings by roughly $12 billion over the next decade.
The rules governing salaried employees’ eligibility for overtime contain within them a maximum salary above which salaried workers cannot receive overtime pay. Prior to the adoption of the new rules, the salary cap was $23,660. The new rules hike that eligibility maximum to $47,476. These new rules arose from a 2014 Presidential Memorandum in which President Obama directed the Labor Department to update the regulations related to who is covered by the Fair Labor Standards Act’s overtime provisions. This was done in order to further “the President’s goal of ensuring workers are paid a fair day’s pay for a hard day’s work.”