Unpaid Overtime

The U.S. Supreme Court Clarifies the Standard of Proof for FLSA Exemption Disputes

January 24, 2025 | Parks, Chesin & Walbert

When you pursue or defend an unpaid overtime case under the Fair Labor Standards Act, there are a lot of variables and uncertainties. One thing that is certain, in the wake of a recent U.S. Supreme Court ruling, is the standard of proof that applies when the dispute centers around exempt-versus-nonexempt classifications. Even with the court deeming that the less-rigorous burden applied, employers should be aware that proving the applicability of an exemption still requires substantial evidence and deep knowledge of the law. Ensuring you have the right Atlanta wage and hour lawyer on your side can make all the difference in clearing this evidentiary hurdle.

The recent Supreme Court case began in a Maryland federal court. A group of sales representatives sued their employer for unpaid overtime. The employer contended that it owed the representatives no overtime because they were exempt employees. (Specifically, the employer deemed the representatives covered by the FLSA’s “outside salesman” exemption.)

The trial court ruled in favor of the employees, concluding that the employer failed to show “by clear and convincing evidence” that the exemption applied. The 4th Circuit Court of Appeals upheld that decision.

Determining Overtime Compensation for Employees Who Work in Multiple Locations

January 17, 2025 | Parks, Chesin & Walbert

Some employees work at the same location, performing the same role every day. A lot of workers, however, do not. They may work for their employer in multiple locations and perform various roles. Employees in this latter category may be at an exceptionally high risk of suffering the harm of unpaid overtime compensation. When you work in different locations or perform different roles, it may be easier for your employer to fail to credit you for all your hours during a workweek and fail to pay overtime even though your total hours exceed 40. If you believe that your employer has illegally underpaid you in this (or any) manner, you owe it to yourself to contact an experienced Atlanta wage and hour lawyer and discuss your circumstances.

Last month, the U.S. Department of Labor’s Wage and Hour Division (WHD) recovered more than $145,000 in unpaid overtime compensation in a case that involved employees whose workweeks included duties at multiple locations.

After an investigation, the division concluded that the employer, which owned three Choice Hotels establishments in Helen, Georgia, engaged in misconduct that wrongfully denied overtime pay to nearly 100 of its housekeeping and front desk employees.

More About the Pleading Necessities When Seeking a Default Judgment in a FLSA Lawsuit

December 23, 2024 | Parks, Chesin & Walbert

As this blog discussed last week, most employers will vigorously litigate a lawsuit where an employee alleges a Fair Labor Standards Act violation. In the rare situations where the employer does not, something called a “default judgment” may be available to the worker. Even though you are not litigating against an actively participating defense, that does not mean success is automatic. You must clear challenging hurdles, which is why retaining a highly skilled Atlanta wage-and-hour lawyer is vital to getting the compensation you deserve.

Last week, we covered jurisdiction and venue issues in the case of a convenience store manager seeking payment for unpaid overtime. Establishing those, which the manager did, is not the only thing you must demonstrate for a judge to grant you a default judgment. You must also demonstrate several more elements specific to FLSA law. Specifically, you must show that you and the employer had an employee-employer relationship and are “covered” by the FLSA.

The woman’s allegation laid out employment as a non-exempt hourly employee at the convenience store from March 2021 to August 2022. Those assertions satisfied the court that the manager had pled an employee-employer relationship.

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.

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.

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.

The Importance of Understanding the FLSA’s Exemptions and Making Proper Exempt/Non-Exempt Classifications

September 16, 2024 | Parks, Chesin & Walbert

According to the U.S. Bureau of Labor Statistics, more than 13.3 million people held jobs in sales and related occupations in May 2023. This group includes, for purposes of the Fair Labor Standards Act’s minimum wage and overtime requirements, both exempt and non-exempt employees. Employers should proceed carefully in classifying their sales workers, as misclassification can result in steep financial consequences. If you have questions about categorizing your sales workers (or about your own sales job,) it is well worth your while to consult an experienced Atlanta wage and hour lawyer to ensure you are getting knowledgeable and reliable advice.

That array of 13.3 million sales workers can be divided into two broad groups: “inside” sales and “outside” sales. “Inside sales” generally refers to workers who sell remotely, such as via the telephone or the Internet, whereas “outside sales” typically refers to workers who meet customers face-to-face. For purposes of FLSA classification, inside sales workers generally are non-exempt while outside sales employees are generally exempt.

An inside sales worker can be exempt if the realities of their job place them within one of the law’s recognized exemptions, but employers should tread cautiously before trying to “shoehorn” their inside sales employees into an exemption. Misclassification errors are often very costly, as a recent unpaid overtime case from New England illustrates.

The Application of Federal Overtime Rules to Employers Using Flat-Rate and ‘Piecework’ Pay Models

September 10, 2024 | Parks, Chesin & Walbert

Whether you are an employer or an employee, it is important to recognize that the Fair Labor Standards Act imposes several limitations on an employer’s pay practices, and employers can run afoul of the law (and its accompanying regulations) in many ways. If you have questions or have identified a policy that may be illegal under the FLSA, do not delay taking the next step, which should include consulting an experienced Atlanta wage and hour lawyer.

Accurately calculating overtime compensation is one area where many employers encounter problems. If an employer pays its non-exempt employers a single, universal hourly rate, calculating overtime compensation can be relatively straightforward, amounting to 1.5 times that hourly rate multiplied by the number of hours worked over 40.

Some employers do not pay workers in that way. They may pay their employees “by the piece,” which is a performance-driven form of compensation that pays based on the number of tasks a worker completes. They may also pay workers a flat rate for each day (or week) worked.

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.

What a Congressional Bill Could Mean to Georgia Employers When It Comes to FLSA Compliance… and the Penalties Attached to Violations

July 25, 2024 | Parks, Chesin & Walbert

Across the country, many state and local governments are enacting – or debating — legislation to combat wage theft. Another body considering statutory changes is the federal government, where a proposed bill would substantially increase the penalties on employers found to have violated the FLSA’s prohibitions against wage theft. Whether you are a worker who has been denied pay you were owed or yours is a business seeking to ensure statutory compliance, get the answers you need by consulting an experienced Atlanta wage and hour lawyer.

Governments that have recently enacted, or are debating, new wage theft laws include Oregon, California, Minnesota, New York State, and the City of Denver, to name a few.

The proposal pending in the U.S. House of Representatives, which has come up in each of the last two Congresses, is a bill called the “Wage Theft Prevention and Wage Recovery Act.”