FLSA

NYC dollar stores settle FLSA complaint

11/05/2010

The owners of 11 New York City dollar stores will pay more than $485,000 to settle complaints they violated the Fair Labor Standards Act by paying workers less than minimum wage, and failing to pay time-and-a-half for overtime hours.

Manhattan’s swank Del Posto restaurant sued for lost tips

11/05/2010

A group of 27 current and former employees at celebrity chef Mario Batali’s Del Posto restaurant are suing the restaurant because they say managers illegally skimmed tip-pool funds meant for service workers.

5th Cir. Court of Appeals rejects DOL interpretation of guest worker minimum-wage requirement

11/01/2010

In a sign that some courts are flexing their muscles and resisting attempts by the U.S. Department of Labor to crack down on employers, the 5th Circuit Court of Appeals has rejected an effort to force employers to cover more guest worker costs.

No holiday pay for exempt staff in first 90 days?

10/29/2010

Q. Our company has a 90-day probationary period that employees must complete before they’re eligible for holiday pay. We’ve always made salaried exempt employees meet this requirement, too. So if a holiday occurs during their first 90 days, we only pay them for the days worked that week. Is this legal?

Fish farms net win in court: They’re not on the hook for FLSA overtime

10/26/2010

By law, the FLSA doesn’t apply to fishing activities when the work takes place on the water. However, the FLSA does cover work at fish-processing plants. That means that employees on fishing boats aren’t required to be paid overtime, while those who packaged the catch on land must. But what about fish farms?

Praising off-the-clock work? Plan to pay for it

10/22/2010

Every manager loves an employee who gives extra effort—the type who will come in early or stay late to finish a project. But, as this new case shows, managers should be careful about praising hourly employees for their off-the-clock efforts. Workers can use those comments in an overtime-pay lawsuit as proof that the company not only knew of the extra hours, but also condoned them.

‘Service charge’ or tip? Pay attention to local laws in addition to state and federal regs

10/15/2010

California employers may incorrectly assume that if they abide by the federal Fair Labor Standards Act (FLSA) and the California Labor Code, they have met their obligations to workers. That may not be true. Local municipalities can also regulate some aspects of wage-and-hour laws.

When class-action wage lawsuit looms, handle employee ‘opt-out’ phase with care

10/15/2010

Employees who think they have been misclassified as exempt under the Fair Labor Standards Act and the California Labor Code may sue on behalf of themselves and all similarly situated current and former employees. Generally, if the case is approved as a class-action lawsuit, those current and former employees will get a chance to opt into the lawsuit for the FLSA claims and opt out of the state case. How employers react can affect how the court handles the opt-out process.

When is it legal to round pay to nearest 15 minutes?

10/14/2010

Q. We have an hourly employee who consistently arrives late—about seven to 10 minutes each time. Can we cut her pay to the nearest quarter hour? We would, of course, pay her for staying later.

Did child labor penalties just get tougher?

10/12/2010

Q. I heard that the U.S. Department of Labor recently implemented tougher penalties against employers that illegally employ child workers. How have these penalties changed?