March 10, 2010

Sales Commissions FLSA Case

Just because sales or other commissions are a part of your paycheck doesn’t mean that you are exempted from overtime pay under the FLSA, says the federal District court in the Southern District of Ohio. Since this case also followed a Kansas District case, it looks like it could be good Georgia employment law as well.

The Ohio case, Keyes v. Car-X Auto Services, Case No. 1:2007cv00503, decided on the Plaintiff’s Motion for Summary Judgment, dealt with a “hybrid” pay plan that included commissions paid against a minimum hourly rate.

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March 3, 2010

Attending AA Meetings not Compensable Overtime

Many Georgia employees have struggled to overcome problems of substance abuse, which can devastate lives both at home and at work. But is it compensable time if you attend a 12- step program that is required as a condition of your employment?

Not according to a federal trial court in Kentucky, which ruled against an employee who was sent to Alcoholics Anonymous meetings by his employer during off- duty time as a stated requirement of his employment. The Court based its decision on an evaluation of who benefited the most from treatment—the Plaintiff, or the Defendant.

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February 24, 2010

Immigration Status and the FLSA

If you are an undocumented foreign worker in Georgia, do you have rights under the Fair Labor Standards Act? It looks like you should have at least some limited rights, if Georgia courts follow a federal court in Washington state, which recently ruled that a person’s immigration status does not affect a claim under the FLSA.

The case, BAILON v. SEOK AM#1 CORP (W.D.Wash.12-9-2009), Case No. C09-05483JRC, concerned the defendant’s requests for discovery that went to the issue of their immigration status.

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December 28, 2009

Deductions for Uniforms Cannot Reduce Your Overtime

Do you have to wear a uniform as a part of your job, and is the cost for the uniform deducted from your paycheck? Your company has to follow a number of guidelines to do this correctly-- and, if they don't follow the guidelines, you may need to contact a Georgia employment attorney.

The FLSA does not specifically limit the ability of an employer to deduct the cost of a uniform from an employee, nor does it require the wearing of a uniform.

If the wearing of a uniform is required by some other law, the nature of a business, or by an employer, the cost and maintenance of the uniform is considered to be a business expense of the employer. If the employer requires the employee to bear the cost, it may not cut into the overtime compensation required by the Act, or affect your minimum wage.

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December 21, 2009

Retail Commissions and Overtime

Just because you receive commissions doesn't necessarily mean that you don't qualify for overtime. The FLSA has carved out an exemption to overtime pay for people who receive commissions as a part of their salaries, but it is a very narrow exception. It is possible that people working in malls all across Georgia should be talking to an employment attorney about this issue.

The exemption, Section 7(i), applies to retail and service establishments, which are defined as "establishments, 75% of whose annual dollar volume of sales of goods or services (or of both) is not for resale, and is recognized as retail sales or services in the particular industry."

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December 7, 2009

Paralegal Overtime Case

This may be a rare occurrence in Georgia employment law, but a federal court in New York has just ruled that a paralegal who also worked as an independent contractor, both positions being with the same firm, does not fall under the ““highly compensated employee” overtime exemption of the FLSA, even though her firm paid her in excess of $100,000 per year.

The case, Magnoni v. Smith & Laquercia, S.D.N.Y., No. 07-9875, (9/11/09), arose under a set of circumstances that may be apart from the norm, but it is certainly informative.

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July 22, 2009

Tip Pooling under the FLSA

Next time you go to an Atlanta sushi or other nice restaurant, notice the side conversations among the staff. Much of the time, it concentrates on tips, taxes, and other paperwork that most restaurant workers know little or nothing about.

If you work for tips, one of the more disliked conventions in the hospitality business is the practice of tip pooling, where the wait staff makes the tips and then is mandated to share them with the host staff, bus staff, etc. This is different from the wait staff voluntarily giving a percentage of tips to their co-workers, and has tax and other implications. This practice has its own set of rules for both employers and employees, and is easily abused by employers looking to save a few bucks here and there.

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July 15, 2009

Compensation for Online Training

Many companies in the Atlanta area now require that their employees take online training classes, or classes at outside facilities. Should the time spent taking this training be compensated? The FLSA covers this issue in general, and a recent DOL opinion letter shines an interesting light on some facts that may come up while employees are taking classes on their computers.

Generally, the FLSA says about online training that it is not compensable if the following four criteria are met:

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July 8, 2009

Belo Plan Contracts

One of the requirements in the FLSA to prove that an employee is under salary and not an hourly employee for the purposes of paying overtime is the concept of a “constant weekly wage,” where the employee gets a set salary for set hours worked per week. Any variance on that theme can result in the employee collecting overtime.

But there are some jobs that just don’t fit that description. There is an exception to that “constant wage” rule, but it is very narrow and very specific and needs to be in writing. It is called a “Belo Plan,” named after the Supreme Court case that allowed the exception, (Walling v. A.H. Belo Co., 316 U.S. 624 (1942)), and provides for a constant wage, even though overtime is actually worked.

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June 17, 2009

Minor Lifeguards and the FLSA

Summer isn’t yet in full swing, but it is already hot here in Atlanta. One of the great summer jobs is lifeguarding, but it is employment that brings with it potential hazards, especially for people under the age of 18.

Lifeguards who are minors have their own classification under the Youth Employment provisions of the Fair Labor Standards Act.

The Department of Labor defines the duties of a lifeguard as rescuing swimmers in danger of drowning, monitoring activities at a swimming pool to prevent accidents, teaching water safety, and providing assistance to patrons. Lifeguards may also help to maintain order and cleanliness in the pool and pool areas, give swimming instructions, conduct or officiate at swimming meets, and administer first aid. Other ancillary duties may include checking towels in and out, and perhaps working with food.

Here are some highlights of restrictions on minors working in pool areas or water parks:

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June 10, 2009

Pending FLSA Legislation

Two major amendments to the Fair Labor Standards Act, one each by a Republican and a Democrat, could profoundly change several FLSA standards for overtime and minimum wages if and when they are passed into law.

The first, introduced in February by Congresswoman Cathy McMorris Rodgers (R. WA), would allow comp time in the private sector. The second, introduced last week by Rep. Donna Edwards (D-MD), raises the minimum wage for restaurant workers. Both bills are fairly controversial, but for different reasons.

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June 1, 2009

Fast Food and Restaurant Workers and the FLSA

No matter what, people have to eat. And restaurant employees will always be there to serve them.

There are over 7 million people employed in restaurants in the United States, a large percentage of whom work in fast food establishments. These jobs are often very transient, and the fact is that many fast food workers don’t realize that they have a number of rights under federal employment law.

Most large fast food restaurants are covered under the Fair Labor Standards Act. Any restaurant or fast food business with annual gross sales from one or more establishments that total at least $500,000 are subject to the FLSA.

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