Unpaid Overtime Pay

Lids, a store selling jerseys, hats, and t-shirts, is facing a class action lawsuit for failing to pay managers for overtime. Lids’ managers were paid under a fluctuating work week (FWW) method of payment. Under this method of payment, employees are paid a fixed salary amount whether or not they work more or less than 40 hours a week. The FWW method further permits hours worked in excess of 40 hours a week to be compensated at a minimum of one-half time the worker’s regular rate. However, the lawsuit alleges that Lids store managers were not fully compensated for all of the overtime hours they worked and were instead paid a bonus based on meeting sales quotas.

On January 2, 2018, the District Court for the Southern District of Indiana denied Lids’ motion to dismiss the case and granted the plaintiff’s motion for conditional certification of an opt-in class of current and former store managers. The judge wrote that the lead plaintiff in the case, Julia Shumate, “has made a modest factual showing that she and the potential opt-in plaintiffs were victims of a common policy that violated the FLSA.”

The judge ordered Lids to provide a spreadsheet listing the names and last known addresses of non-exempt store managers who were entitled to overtime pay since Feb. 2, 2014.

The lawsuit was filed in the U.S. District Court for the Southern District of Indiana and is titled Julia Shumate, on behalf of all others similarly situated v. Genesco, Inc., Hat World Inc., d/b/a Lids Sports Group, 1:17-cv-3574.

 

Image link: https://pixabay.com/en/mall-shop-establishment-mountain-2595002/

The U.S. Department of Labor Wage and Hour Division (DOL) recently investigated a Charleston-based nursing home and rehabilitation company for allegedly violating the federal Fair Labor Standards Act (FLSA).  Specifically, the investigation revealed that the company failed to include six types of bonus payments in the employees’ regular rates of pay for purposes of determining overtime compensation.

The FLSA requires employers to pay non-exempt employees overtime at time-and-a-half of their regular rate of pay for all hours worked over 40 in a workweek. As a result of the company excluding these bonus payments from the regular rate, the employees’ overtime rates ended up being lower than what they should have received under the FLSA.

As a result, the company has agreed to pay its employees back wages amounting to $61,840.00, as well as liquidated damages amounting to an additional $61,840.00.

 

Image link: https://pixabay.com/en/people-street-adult-man-elderly-3023014/

To cut costs, many call center companies now employ agents to work from home. While this practice is perfectly legitimate, those telecommuting employees must still be paid at least the minimum wage, as well as overtime. This is mandated by the federal Fair Labor Standards Act (FLSA). Unfortunately, some call centers and business process outsourcing companies are guilty of withholding wages and overtime pay from home-based telephone agents and representatives.

Employers often fail to pay their home-based telephone agents the required overtime wages. These employees often work before and after their shifts, causing them to work over forty (40) hours in one workweek. Employers are in violation of the law for not compensating these required “off the clock” tasks. This work can include time spent:

• Booting up computers, connecting to networks, and logging in and out systems and programs
• Making notes and completing paperwork before or after calls have been completed
• Reading company memos and updates
• Attending meetings and required training programs
• Working through lunch breaks

In general, “hours worked” includes all time an employee must be on duty, including starting the computer to download work instructions, computer applications, and work-related emails. If you work at a call center and your employer has a policy of only paying you for time spent talking with customers, or if your employer refuses to count time you spend making notes or performing other computer work in between calls, you could have a claim for unpaid overtime. You should consult with an attorney knowledgeable about wage and hour laws as soon as possible to protect your legal rights.

 

 

Image link: https://pixabay.com/en/telephone-call-women-phone-2817221/

The Fair Labor Standards Act (FLSA) requires time and a half to be paid for all hours worked over 40 in a week. All Temporaries Midwest, an employment placement agency for nursing homes, assisted living, and home health care based in Minneapolis, found this out the hard way.

The U.S. Department of Labor conducted an investigation into All Temporaries Midwest’s employment practices. The DOL alleged the company violated the FLSA when it failed to pay enough overtime to employees who worked more than 40 hours in a workweek.

According to federal investigators, All Temporaries Midwest would pay workers time and a half when they exceeded 40 hours in a week, but only up to 47 hours. Once an employee reached the 47 hour mark, the pay reverted to straight time.

After seeing the investigation findings, All Temporaries Midwest chose to settle the dispute. The company will pay 92 registered nurses, licensed practical nurses and certified nursing assistants $401,384.00 in back wages and penalties. Moving forward, All Temporaries Midwest agreed to pay the proper amount of overtime.

 

Image link: https://pixabay.com/en/elder-third-age-nursing-1471399/

As the digital economy grows, more and more jobs are opening up for IT support employees who provide telephone-based technical assistance to other companies. Companies such as Geektek and Synoptic provide a wide range of IT support services. Employees in this industry work long hours to meet the immediate IT needs of their employer’s clients, who in many cases are in different regions or time zones.

To avoid paying overtime, companies frequently commit violations like misclassifying their IT support employees as salaried employees or making them perform work after hours, off the clock, or “on call.” The Department of Labor has provided important guidance on when IT support specialists and similar positions may be classified as “exempt” and paid a flat salary for all of their hours worked. IT workers who primarily troubleshoot and repair computer systems should be classified as hourly, non-exempt employees entitled to overtime pay. However, those who have a more in-depth role in creating and managing computer systems may be considered exempt.

Many IT support workers have sued their employers and recovered significant amounts of unpaid overtime. Employees in this industry should understand their rights and make sure they are properly classified. The Wage Authority Group is here to help.

 

Image link: https://pixabay.com/en/women-teamwork-team-business-1209678/