Minimum Wage

Georgia’s Legislature Weighs Ending the Legal Payment of Subminimum Wages to Workers With Disabilities

February 7, 2025 | Parks, Chesin & Walbert

A new bill pending in the Georgia Legislature would end a decades-old practice of employers legally paying some workers a wage well below the federal minimum. The legislation currently pending in the state senate is a reminder that, like all aspects of the law, wage and hour law is constantly evolving. To ensure compliance with the latest changes, you should speak to a knowledgeable Atlanta wage and hour lawyer with a fully up-to-date understanding of the law.

Georgia is one of 23 states that have banned subminimum wages or are considering legislation to end them. The legislation, Senate Bill 55, is called the “Dignity in Pay Act” and is a bipartisan initiative with three Democratic and four Republican sponsors.

The Georgia Council of Developmental Disabilities estimated that roughly 250 Georgians worked at jobs paying a subminimum wage. If the bill becomes law, employers currently paying subminimum wages would have to pay all workers an hourly rate at or above the minimum wage by 2027.

When Employers Can (and Cannot) Deduct Losses or Expenses from a Tipped Worker’s Pay Without Violating the FLSA

September 23, 2024 | Parks, Chesin & Walbert

Business owners face many business risks. One that is regrettably on the rise in the food service industry is the “dine and dash,” where customers consume food or drinks, and then leave without paying. The rise of this practice raises some important questions about who pays for dine-and-dashers’ purchases and when (or if) an employer can deduct the cost of a customer walkout from a tipped worker’s wages. As with any minimum wage or overtime compensation question, obtaining knowledgeable advice to ensure complete legal compliance is crucial. An experienced Atlanta wage and hour lawyer can give you the information you need to understand fully your rights and obligations.

While viral social media content and the FLSA do not regularly overlap, a recent TikTok video provides a real-life example of this issue of customer walkouts and deductions from a tipped worker’s income.

The September 8 video, released by a golf course beverage cart attendant, warned other service industry employees to be cautious when handing a customer a wireless device (such as an iPad or Android tablet) to complete paying for their purchases. Allegedly, a customer used trickery to dodge paying a $76 bill, a deceit the attendant did not discover until after the group was “long gone.”

Collective Actions Under the Fair Labor Standards Act and Federal Court Jurisdiction in Georgia

August 23, 2024 | Parks, Chesin & Walbert

Collective actions (which are highly similar to class actions except they litigate workers’ Fair Labor Standards Act claims against their employers) are occurring more frequently. This reality serves as a reminder of the importance, as an employer, of ensuring complete compliance when it comes to the minimum wage, overtime, classification, and other pay practices covered by the FLSA. If you are a worker who has been denied the pay the FLSA requires – or you are an employer with questions about the FLSA and FLSA collective actions – you should make sure you have reliable answers and information. You can do that by getting your advice from an experienced Atlanta wage and hour lawyer.

Like class actions, collective actions may include both named plaintiffs and additional plaintiffs who subsequently “opt-in.” Some employers, when facing collective actions far from their “home” base of operations, have used the presence of these “opt-in” plaintiffs to fight the collective action on jurisdictional grounds, including one employer that scored a successful outcome recently.

The employer, a Texas-based construction company, employed workers to construct, among other things, buildings that housed livestock. A Wisconsin employee sued the employer in a federal court in that state, alleging that the employer illegally underpaid him by wrongfully classifying him as exempt under the agricultural worker exemption.

Resolving a Minimum Wage Lawsuit… and Steps to Reduce Risk Before Problems Arise

July 31, 2024 | Parks, Chesin & Walbert

As an employer, there are many ways to resolve a minimum wage dispute. Sometimes, there is no way within your control to keep the matter from going to trial but, oftentimes, options to avoid time-consuming and potentially expensive litigation exist if you desire to pursue them. When you are facing a potential Fair Labor Standards Act issue, a knowledgeable Atlanta wage and hour lawyer can provide assistance on many fronts. Your legal team can investigate the issue, determine what happened, and then advise you regarding the strengths and weaknesses of your position, in addition to advising you about all your options and which one makes the most sense, whether that is settling, arbitrating, or litigating.

A skilled advocate can also spot when the best solution is none of those. A 2024 case to our north is an example of such a solution.

In January, a server at a Tennessee Waffle House restaurant sued her employer for minimum wage violations of the FLSA.

A Recent Study Found that More than 40% of Georgia Employees Do Work Off the Clock

May 10, 2024 | Parks, Chesin & Walbert

The COVID-19 pandemic brought about many changes in the world of work, including a massive expansion of remote work. While remote work has been a boon to workers in many ways, it further blurs an already eroding line between when a worker is “on the clock” and off-the-clock time. Both employers and employees should be mindful that employees are entitled under the law to receive compensation for all the time spent working. If a non-exempt employee does off-the-clock work and doesn’t receive compensation, that may potentially represent a violation of the Fair Labor Standards Act. Whether you are a non-exempt employee or an employer, a knowledgeable Atlanta wage and hour lawyer to discuss your situation and whether it complies with what the FLSA requires.

Remote work isn’t the only issue. The massive proliferation of high-speed internet connectivity and “smart” devices means workers can be “plugged in” to work at all hours and at any location.

Recently, a Duluth-based business researched the work employees do… and when they do it. The results were noteworthy. According to a Valdosta Today report, the study found that 40% of the nation’s workers were “working longer than their contracted hours.” Georgia is above the national average with 43% of Peach State workers reporting that they did work off the clock.

Overtime and Minimum Wage Violations Cost Employers More Than $150M in 2023

April 30, 2024 | Parks, Chesin & Walbert

Back in January, the U.S. Department of Labor published its annual report detailing the accomplishments of its Wage and Hour Division. The “WHD by the Numbers 2023” report revealed several key things. One was the cost of employers’ failure to comply with the Fair Labor Standards Act. In 2023 alone, employers paid out more than $151 million to the WHD due to overtime and minimum wage violations. This should tell readers that FLSA non-compliance can be a substantial – and often unnecessary – drain on a business’s revenues. To ensure your business is fully compliant with all the FLSA’s demands, be sure you’ve consulted an experienced Atlanta wage and hour lawyer.

Overtime and minimum wage compensation are areas where misclassification often plays a major role. Overtime non-compliance can arise from misclassifying an employee as an independent contractor or misclassifying a non-exempt employee as an exempt employee. Misclassification-related minimum wage violations often are the result of erroneously classifying an employee as an independent contractor.

The report highlighted some other noteworthy information, including:

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;

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.

The Federal Court Procedure for Terminating a FLSA Case Partially Resolved Via Settlement

May 18, 2023 | Parks, Chesin & Walbert

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.

A Federal Court in Georgia Denies the Salvation Army’s Dismissal Motion in a Minimum Wage Dispute Involving ‘Rehabilitation Program’ Participants Who Worked in Its Thrift Stores

April 21, 2023 | Parks, Chesin & Walbert

When it comes to determining compliance with the Fair Labor Standards Act’s minimum wage and overtime compensation requirements, it’s essential to understand that not all workers receive pay 100% in the form of cash. Some may receive compensation through housing, meals, or other non-cash forms. Even if you’re receiving in-kind or non-monetary compensation, it’s still possible for your employer to violate minimum wage laws, as a group of thrift store workers alleged in a recent federal action here in Georgia. If you believe you’ve encountered that kind of illegal treatment, don’t wait to take action. Get in touch with a knowledgeable Atlanta minimum wage lawyer to find out what next steps you should take.

Those thrift store workers worked at the Salvation Army’s stores in several southern states. According to all of the workers, the Salvation Army ran “residential adult rehabilitation centers and adult rehabilitation programs,” and used those rehab participants to staff its thrift stores.

Salvation Army thrift stores are big business, bringing in close to $600 million in revenue in 2019 alone. Here in the United States, the Salvation Army is separately incorporated in each of four regions. The federal case here in Atlanta is one of three. Thrift store workers recently achieved similar successes in overcoming the Salvation Army’s dismissal efforts in federal lawsuits in Chicago and New York City.