Unpaid Overtime

When a Reduction of a Worker’s ‘Regular Rate’ of Pay Crosses from a Permissible Modification to an Illegal Dodge of the Requirements Imposed by the FLSA

May 31, 2023 | Parks, Chesin & Walbert

Employers have several tools at their disposal to cut costs, including the expenses that go with paying their workers. The law gives employers considerable latitude in modifying workers’ pay if those workers have begun putting in longer hours but, as any knowledgeable Atlanta unpaid overtime lawyer can tell you, when an employer cuts a worker’s regular rate of pay in an artificial way that’s designed to get around complying with the overtime rules of the Fair Labor Standards Act, that a violation of the law.

One potential way an employer can run afoul of the statute is to create two different “regular” rates of pay, with the goal of using the lesser of the two as the basis for calculating overtime pay, thereby artificially depressing the amount of overtime compensation the workers would receive.

That’s what one security guard alleged in his FLSA lawsuit against his employer. When the guard started his employment, the employer paid him $13 per hour and the guard worked 40-hour weeks.

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 New Wage and Hour Ruling from the U.S. Supreme Court and Its Potential Impact on Some High-Earners in Georgia

February 28, 2023 | Parks, Chesin & Walbert

In an important new ruling, the U.S. Supreme Court recently clarified the standards under which a worker does (or does not) qualify as a salaried exempt employee for purposes of overtime compensation. The 6-3 decision in favor of an oil rig worker clarifies that just because an employee earns a very high income, that does not automatically mean that he/she is an exempt employee. Regardless of how much you make, if you think that you meet the legal standards for a non-exempt employee, then you may be entitled to overtime pay and if your employer didn’t compensate you accordingly, you potentially can, with the aid of the right Atlanta unpaid overtime lawyer, win compensation in a Fair Labor Standards Act lawsuit.

The worker, M.H., worked as a tool pusher on an offshore oil rig. That job typically entailed the employee working 12-14 hours per day, seven days per week for a stint of four weeks, followed by four weeks off. The employer paid the pusher a daily rate of $963. All totaled, the worker earned more than $200,000 annually.

Neither the worker nor the employer argued that 29 CFR 541.604(b) applied to the pusher’s circumstance. That’s the federal regulation that says that if a worker receives extra pay based on his/her work hours, he/she can still be an exempt employee so long as there was a “reasonable relationship” between the worker’s periodic salary and the amount the worker actually earned each period.

An FLSA Class Action, Collective Action, or Individual Action: Which One Makes the Most Sense for My Unpaid Overtime Claim?

February 7, 2023 | Parks, Chesin & Walbert

If your employer has denied you overtime pay that you earned, you potentially have several possible legal options. You can seek compensation individually, you can initiate a class action, or you can pursue a collective action under the Fair Labor Standards Act. Determining which avenue makes the most sense can be a complicated and nuanced legal determination, so make sure you get the advice you need from an experienced Atlanta unpaid overtime lawyer before you start.

Earlier this month, one north Georgia nurse achieved an important success in her unpaid overtime case, successfully persuading the federal district court in Atlanta to approve her collective action.

The nurse was a Gwinnett County woman who worked as a “medical management nurse” for a major insurance company. Her main duty (along with the primary duty of several colleagues with various titles) centered on performing medical necessity reviews for the employer. That entailed “reviewing medical authorization requests submitted by healthcare providers against pre-determined guidelines and criteria for insurance coverage.”

What Happens if My Employer Takes an Automatic Pay Deduction for Meal Breaks But I Did Not Actually Get My Break?

January 24, 2023 | Parks, Chesin & Walbert

In wage and hour law, as with any area of the law, there are issues that arise with elevated frequency at certain moments in time. (For example, a few years ago the courts saw a flurry of employee-versus-independent-contractor misclassification cases involving exotic dancers.) More recently, an issue before multiple different courts involves employers taking automatic meal-break deductions, regardless of whether the workers got their full break (or any break at all) or not. When this happens, it may constitute a Fair Labor Standards Act violation for which you may be entitled to compensation. An experienced Atlanta wage-and-hour lawyer can tell you more about whether your situation represents a violation of the law.

One of the most recent incidents occurred to our north, where Ohio workers initiated a class action against their employer, a medical company that owns hospitals, rehab centers, and clinics. According to the workers, the employer had a practice of automatically deducting 1/2 hour from their hours to account for each worker’s meal break. The alleged problem was, however, that the realities of the workplace (especially during periods of understaffing) meant that workers often had to work through lunch or were able only to take abbreviated meal breaks. Even when those circumstances arose, the employer still took the automatic 30-minute deduction, according to the complaint.

On that basis, the workers alleged that the employer violated the FLSA by failing to pay overtime wages the workers earned. The class that the workers proposed was an expansive one; namely, “all current and former hourly, non-exempt direct care employees of defendant who had a meal break deduction applied to their hours worked in any workweek where they were paid for at least forty (40) hours of work.”

Company Holiday Parties in Georgia and How They Can Run Afoul of Sexual Harassment or Wage and Hour Laws

December 16, 2022 | Parks, Chesin & Walbert

Employers celebrating the holidays with company-wide parties are increasing in numbers. While not at 2019 levels, research shows that, in 2022, more than half are having in-person events. With office holiday parties returning, so too are the legal risks that run concurrently with them. Whether you’re an employer or an employee, it is important to acknowledge that the company holiday party can violate the law in more ways than you might have considered. For employers, a skilled Atlanta employment lawyer can help you keep your party legally compliant. For employees harmed as a result of these kinds of violations, the right legal counsel can be invaluable in protecting your legal options related to those violations.

The Chicago-based firm of Challenger, Gray & Christmas conducts an annual survey of employers regarding holiday parties. The firm’s 2022 survey revealed a massive uptick in in-person events, rising from 27% in 2021 to 57% this year. While not at 2019’s high (75%,) the 2022 number approaches where employers were in 2018 (65%.)

Holidays carry a unique set of risks for employers and employees alike. Especially in recent years, employers and employees alike have become more aware of the risks of sexual harassment at company holiday parties, especially when those events also involve the availability of alcoholic beverages.

The U.S. Department of Labor Just Announced a New Proposed Rule for Independent Contractor Classifications: What it May Mean for You

October 17, 2022 | Parks, Chesin & Walbert

For many workers in this so-called “gig” economy, one of the biggest issues they (and the entity that retains their services) must confront is whether that worker is an independent contractor (who is not covered by many of the protections of the Fair Labor Standards Act) or an employee (who, unless exempt, generally is covered by the law.) Often, these classifications are inappropriate and the worker in question, based on the nature of his/her job, qualifies as an employee, not an independent contractor. When that happens, you may have a claim for compensation wrongfully denied to you, meaning you should get in touch with a knowledgeable Atlanta worker misclassification lawyer right away to discuss your circumstances.

A new proposed rule that the U.S. Department of Labor announced earlier this month could make it harder for employers to classify workers as independent contractors. The new rule seeks to limit independent contractor status only to those workers who, “as a matter of economic reality, are not economically dependent on their employer for work and are in business for themselves,” according to the Labor Department.

The existing rule has five “economic realities” to guide the classification of workers as independent contractors versus employees. The rule split those five into two “core factors,” which were the nature and degree of the hiring entity’s control over the work and the worker’s “opportunity for profit or loss,” and three lesser factors, which were the degree of skill the work required, the extent to which the hiring entity-worker relationship was or was not a permanent one, and whether the worker’s work was part of an integrated unit of production.

The Limits of Arbitration Agreements in Minimum Wage and Unpaid Overtime Cases in Georgia

September 23, 2022 | Parks, Chesin & Walbert

In many fields of employment, an employer may seek to obtain its employees’ signatures or agreements in which those workers sign away their right to sue in court for certain claims, such as unpaid overtime or minimum wage disputes. In place of a trial in court is a hearing before an arbitrator or arbitration panel. Employers insist on these agreements because, often, proceeding in arbitration as opposed to litigation works to the employer’s benefit and to the employee’s detriment. That’s why you should proceed with substantial care before such a waiver of your rights and, if you have questions or concerns, get in touch with a knowledgeable Atlanta minimum wage lawyer.

Not only can an agreement place you in the position of contesting your underlying claims before an arbitrator, but even the arguments you raise about the enforceability of the arbitration agreement itself may also have to be contested in that same arbitration setting.

That was the bad news for some workers who sued in federal court in New York alleging they were illegally underpaid. The plaintiffs were workers at various locations of a center that spread the teachings of Kabbalah. These were workers who, when they joined the center, signed vows of poverty. They received “cash allowances or monthly stipends,” housing, food, and clothing. They received no other compensation for their work.

When Your Work in Georgia May Be ‘Agriculture’ for Purposes of Your H-2A Visa, But Not ‘Agriculture’ for Purposes of the FLSA

August 24, 2022 | Parks, Chesin & Walbert

According to the Georgia Department of Economic Development, agribusiness represents the state’s leading industry, checking in with $74 billion in annual economic impact. That means that a lot of workers in this state are exempt from the minimum wage and overtime provisions of the Fair Labor and Standards Act, based on that law’s agriculture exception. One group to whom that exception does not apply, however, are workers who may work at agribusiness sites but who are not employed in agricultural work. If you’ve been denied overtime or other appropriate compensation due to a misapplication of the FLSA’s agriculture exception, then you should retain an experienced Atlanta unpaid overtime lawyer to get started pursuing what you’re owed.

While not from here in Georgia, a recent federal unpaid overtime case is a good example of what we mean. The plaintiff in the lawsuit, José, worked for a Texas-based construction firm that built structures for commercial, industrial, and agricultural clients. José’s job called for him to build “livestock confinement facilities.”

José allegedly worked more than 40 hours per week “regularly,” but his employer paid him no overtime compensation, so he sued under the FLSA.

The Importance of Rules Compliance in Your Federal FLSA Lawsuit, and What to Do When Your Employer Doesn’t Follow the Rules

July 22, 2022 | Parks, Chesin & Walbert

In 2014, a children’s author released her new book for 4-7 year-olds, entitled I Can Follow the Rules. The benefit of following the rules is a lesson taught from a young age. Failure to follow the rules has its own set of potential consequences. That’s true whether you’re a student in pre-K or a litigant in federal court. This is a huge reason why it pays to have a knowledgeable Atlanta unpaid overtime lawyer on your side: both to ensure you’re in compliance and to utilize your opposition’s failure to satisfy the rules to your maximum benefit.

You can see what we mean in a recent federal case regarding an allegation of unpaid overtime in violation of the Fair Labor Standards Act. The worker, V.C., had held a sales professional role for an Alpharetta hair restoration clinic until mid-November 2019 when the clinic fired her.

After that termination, the saleswoman sued the clinic and its CEO for violations of the Fair Labor Standards Act, alleging that the employer improperly withheld commissions and failed to pay her overtime compensation that she’d earned.