FLSA Category Archives — Page 3 of 12 — Atlanta Employment Attorneys Blog Published by Atlanta, Georgia Employment Lawyers

A New Independent Contractor Classification Rule Has Taken Effect: What It Means for Your Job… or Your Business in Georgia

April 11, 2024 | Parks, Chesin & Walbert

One month ago today, a new U.S. Department of Labor rule updating the standard for classifying workers as employees or independent contractors under the Fair Labor Standards Act became effective. The new rule has received extensive coverage, with some commentators praising it as a needed expansion of workers’ rights, while others disparaged it as unfairly restricting opportunities for freelancers. Regardless of one’s perspective, the rule is now effective and employers and workers alike should familiarize themselves with its elements and its impact on their jobs or businesses. Whether you’re a worker or an employer, classification errors under the FLSA can potentially be highly damaging, which is why it’s vital to consult a knowledgeable Atlanta wage and hour lawyer about your situation.

As this blog discussed in October 2022, the new rule utilizes the “economic realities” test to determine if a worker is an employee or an independent contractor. The rule calls upon decision-makers to make assessments using six economic realities. The 11th Circuit Court of Appeals (which covers Georgia, Alabama, and Florida,) described those six in 2013 as:

the degree to which the hiring entity has a right to control how the work is performed;

A Lawsuit by 3 Golf Course Attendants Spotlights the Criteria of the FLSA’s ‘Public Agency Volunteer’ Exemption

March 18, 2024 | Parks, Chesin & Walbert

Whether you are an employer or a worker, employee-versus-nonemployee classification for purposes of employment law is a vital step, and the extreme importance of this classification process is something where you definitely should consult a knowledgeable Atlanta wage and hour lawyer. As a worker, misclassification may improperly deny you access to many statutory rights, including those guaranteed by the Fair Labor Status Act. As an employer, misclassification can inflict its own potential harm, including legal liability and an obligation to pay substantial court-ordered compensation to the worker(s) who sued your business.

Often, misclassification disputes involve deciding whether a worker is an employee or an independent (1099) contractor. As an FLSA case that recently came before the 11th Circuit Court of Appeals illustrates, that’s not the only way that misclassification can occur, and any classification that improperly fails to designate a worker as an employee can have serious negative consequences.

The plaintiffs performed services at a public golf club in South Florida. These roles included course rangers, cart attendants, driving range attendants, and bag drop attendants. The county specifically listed the positions as “volunteer” roles. They received no wages but were allowed to accept tips. As a perk, volunteers performing these tasks were entitled to “reduced fees to play and practice golf.” Specifically, volunteers who worked at least one seven-hour shift each week were entitled to “unlimited” rounds of golf at a steep discount ($5 per round instead of the standard $96 per round.)

Engaged to Wait or Waiting to Be Engaged: When On-Call Hours Are (and Aren’t) Compensable

February 29, 2024 | Parks, Chesin & Walbert

A recent minimum wage case from Massachusetts is a reminder that just because an employee is not actively engaged in conducting the employer’s business — or maybe even is asleep — that doesn’t mean those hours aren’t compensable time. Hours spent on-call or waiting to work may or may not be compensable time under the Fair Labor Standards Act. The analysis depends on the totality of the circumstances and, as the courts have put it, were the employees “engaged to wait” or waiting to be engaged? Whether or not you’re an employer or an employee, understanding what time is compensable (and what isn’t) is crucial. An experienced Atlanta wage and hour lawyer can help you make those assessments and take the appropriate next steps.

The case from the Massachusetts federal court involved long-haul truck drivers. Federal regulations demand that truck drivers spend 10 hours of every 24 off duty, but other regulations say that employers when determining compensation, can deduct a maximum of eight hours of every 24 as a sleeping period. The drivers’ minimum wage lawsuit contended that they should be entitled to compensation for 16 hours, not 14.

The court sided with the employees. Given that the drivers spent the hours in dispute in a moving semi-truck (a confined space “that is ill-equipped for many activities,” “containing only some basic living essentials,” and that drivers cannot leave until the truck stops moving,) the court concluded that the time was not truly the drivers’ own but instead spent predominantly for the benefit of the employer, making it compensable.

A Nanny’s Overtime Case Sheds Light on the Extent of the Domestic Service Exemption’s Application

February 15, 2024 | Parks, Chesin & Walbert

Domestic workers (like nannies and housekeepers) are a diverse group. Even fictional depictions range from Julie Andrews’ Mary Poppins to Robin Williams’ Mrs. Doubtfire. In real life, these workers often put in long hours, working more than 40 hours a week. Those facts may mean that a nanny or housekeeper may be entitled to substantial overtime compensation if they qualify as a non-exempt employee. If you have questions about the Fair Labor Standards Act’s overtime requirement or the domestic service exemption, consult an experienced Atlanta wage and hour lawyer.

A South Florida nanny’s recent unpaid overtime case clarified the breadth/narrowness of the domestic service exemption in federal cases in Georgia and two surrounding states.

The worker began as a full-time nanny and housekeeper for two South Florida parents in 2019. The nanny worked overnight shifts for five consecutive nights, totaling 79 hours per week. The parents paid the nanny a flat rate of between $800 and $880 weekly.

A Georgia Delivery Driver Wins Payment of Post-Judgment Collection Costs and Fees Following a Successful FLSA Claim

January 31, 2024 | Parks, Chesin & Walbert

Food delivery drivers frequently can be the victims of Fair Labor Standards Act violations. That can include improperly underpaying drivers who use their personal vehicles for deliveries (by paying them only the minimum wage and then not properly paying them for the vehicle expenses they incur,) or illegally underpaying them as a result of misclassification as exempt employees when they really were non-exempt. Whether you’re a driver who believes your employer denied you the pay that you were owed under the law, or you’re an employer seeking to ensure that your pay practices are compliant with relevant laws, if you have questions about the FLSA, you should seek out knowledgeable answers from an experienced Atlanta age and hour lawyer.

One of those underpaid workers was A.N., a North Georgia pizza delivery driver, who filed to arbitrate a claim that the employer had illegally underpaid him in violation of the FLSA in 2019. The next year, an arbitrator sided with the driver and concluded that he had suffered $5,198 in actual damages. Coupled with $5,198 in liquidated damages and $153,867 in attorneys’ fees and costs, the total award was $164,264. The federal court for the Northern District of Georgia affirmed the award.

The employer, however, refused to pay. That forced the driver to bring a collection suit in federal court in Missouri, which the employer contested. The driver ultimately succeeded in collecting the judgment but spent an additional $53,934 to do so. The driver, in pursuit of the collection of those expenses, returned to the Northern District court on a motion for fees and costs.

Exotic Dancers and Employment Classification: What a Series of FLSA Cases Can Teach, Even if Yours is Not an ‘Adult’ Business

December 22, 2023 | Parks, Chesin & Walbert

One of the emerging areas in Fair Labor Standards Act litigation centers on the misclassification of exotic dancers. Several groups of dancers have successfully sued clubs for illegally misclassifying them as independent contractors instead of employees. While this industry may be relatively small, these misclassification cases hold significance for more than just adult entertainment clubs and the dancers who perform in them. The question of “independent contractor or employee” is a crucial one in many lines of work and misclassification can have extremely deleterious consequences. If you have questions about independent-contractor-or-employee classification, contact a knowledgeable Atlanta worker classification lawyer to get the answers you need.

One local club in Northeast Atlanta is facing FLSA litigation… and it isn’t their first time. Last month, a group of four dancers sued the club seeking recovery for “unpaid wages and overtime compensation, interest, liquidated damages, attorneys’ fees, and costs” under the FLSA.

A decade ago, that same club settled a previous FLSA lawsuit, agreeing to pay a class of 73 dancers more than $1.5 million. In that case, the club classified the dancers as independent contractors and the dancers’ compensation consisted solely of the tips they received. Additionally, the club charged its dancers various fees to perform at the establishment.

The Consequences of Employees Working Off the Clock

December 8, 2023 | Parks, Chesin & Walbert

Workers can encounter many forms of misconduct that amount to violations of the Fair Labor Standards Act. One of these issues relates to work performed off the clock. Whether you are an employee or an employer, if you have questions about unpaid hours and the FLSA, be sure to get in touch with an experienced Atlanta wage and hour lawyer to understand thoroughly your rights and responsibilities.

A major insurance company — whose CGI mascot is widely popular and seemingly ubiquitous on some television sports broadcasts — has found itself accused of multiple FLSA violations in the last few years, with the most recent action proceeding just to our south in the Middle District of Georgia federal court.

The employees were sales representatives who worked in the insurer’s call center in Macon. They alleged that the employer improperly forced them to perform essential job-related tasks before or after hours or during breaks, including booting up and shutting down their computers, responding to emails during meal periods, and staying late if their computer terminals malfunctioned during the day.

The Many Details That Go Into Successfully Settling a FLSA Lawsuit in Georgia

November 22, 2023 | Parks, Chesin & Walbert

In a lot of civil cases, settling the matter is pretty straightforward. The parties will work out mutually agreeable terms, someone will prepare a written settlement agreement, and barring exceptional circumstances, the court will accept the settlement and dismiss the case. FLSA cases — and settlements — are a bit different and somewhat more complicated. There is a wider array of situations where, even if the parties have genuinely agreed, the court may reject a settlement. Working with a knowledgeable Atlanta wage and hour lawyer can enhance your odds of avoiding this kind of money and time-consuming situation.

When parties to a FLSA case filed in a federal court in Georgia, Florida, or Alabama seek to settle, they must comply with what the 11th Circuit Court of Appeals wrote in the 1982 case of Lynn’s Food Stores, Inc. v. United States. The Lynn’s Food ruling says that any acceptable settlement must be a “fair and reasonable resolution of a bona fide dispute over FLSA issues.”

One example of a settlement executed correctly comes from the federal court in Orlando, Florida. The employee was a handyman who worked for a local social services organization for two years and two months. During that time, the handyman allegedly worked more than 40 hours a week on several occasions. Despite this, the employer never paid him overtime compensation, according to his complaint.

How a Georgia Employer’s Methods for Paying Workers Ultimately Cost It Tens of Thousands of Dollars

November 8, 2023 | Parks, Chesin & Walbert

What started as a dispute over a few hundred dollars ended with an Atlanta-area employer paying nearly $40,000. That outcome is a useful lesson to employers on several fronts. One, always maintain legally compliant pay records, including pay rates, hours worked, and sums paid. Two, always make sure that you are paying your non-exempt workers proper time-and-a-half overtime when they work more than 40 hours in a week. And three, if you feel the urge to pay wages that you owe under the Fair Labor Standards Act in a way that smacks of revenge… don’t. Just issue a check and move on. It’ll be cheaper and better for your business in the long run. If you have any questions about your rights and responsibilities under the FLSA, make sure you consult with a knowledgeable Atlanta wage and hour lawyer.

The original dispute, which received relatively broad coverage as a result of its peculiar facts, pitted a Peachtree City auto repair shop against one of its former employees. The disagreement began after the employee, A.F., contacted the U.S. Labor Department’s Wage and Hour Division to complain that his employer had not paid him his final paycheck, which amounted to $915.

Rather than simply cutting a check, the employer obtained 91,500 pennies, covered them in automotive fluids, and then delivered them to A.F.’s driveway. To remove doubts regarding motivation, the employer stuffed the man’s pay stub in an envelope with “[expletive] you!” written on the outside. The pile of pennies weighed more than 500 pounds and took more than seven hours to remove from the man’s driveway.

An Unpaid Overtime Case from Atlanta Sheds Light on the Importance of Keeping Good Pay Records

October 24, 2023 | Parks, Chesin & Walbert

An Atlanta wrecker and towing service found itself in court after two drivers accused it of illegally failing to pay them the overtime compensation they were properly due under the Fair Labor Standards Act. The court’s summary judgment ruling in the case includes vital lessons for employers when it comes to the importance of maintaining clear and thorough pay records, as well as the risks involved in handing off FLSA compliance to a third party. If you’re facing an unpaid overtime claim (or pursuing one,) representation from a knowledgeable Atlanta wage and hour lawyer can be essential to your success.

The drivers typically worked 4-5 12-hour shifts each week. The employer paid its driver a straight commission weekly that was “calculated as a percentage of the total revenue they derived from the tows they performed that week.” For one driver that percentage was 30%, for the other it was 35%.

As noted above keeping clear, understandable, and accurate time and pay records for all employees can be crucial to any business.