Unpaid Overtime

‘Discretion and Independent Judgment’ Within the Context of the Administrative Exemption to the FLSA’s Overtime Rules

May 31, 2024 | Parks, Chesin & Walbert

One way for an employer to defeat an employee’s unpaid overtime claim is to establish that the worker was exempt from those provisions in the Fair Labor Standards Act. The law has several types of FLSA exemptions, including the executive exemption, the administrative exemption, the professional exemption, the computer employee exemption, the outside sales exemption, and the highly compensated employee exemption, among others. Whether you are an employee or an employer, understanding the scope of these exemptions, and when they do (or don’t) apply can be crucial. An experienced Atlanta wage-and-hour lawyer can provide much-needed advice and information about these exemptions.

A recent case from the Middle District of Georgia looked at one exemption in particular – the administrative exemption.

According to the employees’ lawsuit, their employer illegally failed to pay them overtime compensation in violation of the FLSA. The employer contended that it did not owe the women overtime pay because the administrative exemption applied.

Resolving Your Unpaid Overtime Case Via Mediation or Other Forms of Alternative Dispute Resolution

May 17, 2024 | Parks, Chesin & Walbert

Once you find yourself involved in a federal Fair Labor Standards Act lawsuit (whether as a plaintiff or a defendant,) you might imagine an elaborate litigation process with an intensely contested trial. Sometimes, that is what happens. Other times, different methods of resolution (that are frequently less involved and less expensive) may represent a more advantageous way to conclude a dispute. A skilled Atlanta wage-and-hour lawyer can be essential in helping you get a fair and just outcome – through litigation when necessary and through other means when that approach better serves your needs.

Many workers and/or employers may not fully understand how mediating an FLSA case works. A recent unpaid overtime case from the federal Southern District of Georgia court provides a useful background in walking through the process.

The Augusta-based employer allegedly violated the FLSA by improperly failing to pay one of its employees, P.J., overtime compensation and retaliating against him for complaining.

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 Federal Overtime Regulation Stands to Alter the FLSA Exemption Status of Millions of Employees, According to the U.S. Labor Department

April 24, 2024 | Parks, Chesin & Walbert

Yesterday, the U.S. Department of Labor announced the publication of a new regulation governing the salary minimums applicable to certain exemptions under the Fair Labor Standards Act; namely, the executive, administrative, professional, outside sales, [or] computer employee” (a/k/a “EAP”) exemption and the highly compensated employee (HCE) exemption. According to DOL estimates, the new rule is a major departure from the previous rule, potentially moving as many as four million employees from exempt to non-exempt status. This change may significantly benefit those workers who become non-exempt. It also represents a critical decision-making juncture for employers. To ensure your business remains compliant with the FLSA in the face of the changing exempt-versus-non-exempt landscape, consult a knowledgeable Atlanta wage and hour lawyer.

The new rule is the result of a months-long rulemaking process. Last September, the DOL published a proposed version of the regulation. The proposed rule called for increasing the minimum salary level for qualifying as an exempt EAP employee to $1,059 per week (or $55,068 annually.) The department chose that figure because it represented “the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region.” (By the way, that lowest region is here in the South.)

The proposed rule also called for raising the minimum salary for qualifying under the HCE exemption to $143,988 annually. That figure was equal to the “annualized weekly earnings of the 85th percentile of full-time salaried workers nationally.”

Resolving Ambiguities in the Settlement Agreement from Your Georgia Unpaid Overtime Case

April 17, 2024 | Parks, Chesin & Walbert

Unpaid overtime lawsuits pursued under the Fair Labor Standards Act are often complex matters. That’s true even if the parties avoid a trial and instead settle their dispute. Getting what you deserve from your settlement requires several crucial things, including negotiating an agreement that meets all your essential needs, executing an agreement that is clear, detailed, unambiguous, and complete, and taking all necessary actions to uphold your rights obtained in that agreement. As you work toward completing any of these steps, representation from an experienced Atlanta unpaid overtime lawyer can be vital to your success and protecting your interests.

A recent case from the federal courts is a relevant example. The lawsuit, which the workers filed in the Northern District of Georgia in 2019, alleged claims of unpaid overtime in violation of the FLSA. Although the workers originally sought more than $800,000 in damages, they and the employer eventually agreed to a settlement of $60,000. The agreement called for the employer to pay $10,000 upfront (within seven days) and then pay $1,000 each month for 50 months.

The contract also stated that if the employer didn’t pay, paid late, or otherwise defaulted on its obligations, the workers were required to contact the employer’s lawyer and give the employer seven days to cure the default. If the employer did not respond satisfactorily within seven days, then the workers were entitled to a $100,000 judgment against the employer and its owner.

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 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.

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.