Pizza Chain Fined For Violating Overtime Pay Laws And Retaliation

June 28, 2011

Upper Crust, a gourmet pizza chain, continues to face legal problems as the result of failing to pay overtime compensation due its employees. A Department of Labor investigation revealed that more than 100 employees were entitled to back wages pursuant to the Fair Labor Standards Act (FLSA).

The same pizza chain recently came under investigation for retaliation.

The FLSA sets forth certain minimum wage and overtime standards that affect nearly all employers. Included in the FLSA are minimum wage and overtime provisions. The overtime law states that all employees who are not exempt must be paid at a rate of one and one-half times their regular rate of pay.

One of the most important issues in overtime law – and what gets most employers into trouble – is properly classifying workers and exempt or not exempt. Exemptions typically apply where you make a certain amount of money per week and perform a certain type of “white collar” work. If you are exempt, then your employer isn’t required to pay overtime, regardless of the number of hours you work. However if you’re not exempt then you must be paid time and a-half for every hour worked more than 40. If your employer fails to pay overtime, it may be a violation of the FLSA. Further – if you complain about not getting paid, your employer is prohibited from retaliating against you by taking such action as firing you or giving you worse hours.

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Law Firm Employees File Suit Alleging Overtime Pay Violations

June 22, 2011

One of the oldest federal employment laws is the Fair Labor Standards Act (FLSA). The FLSA guarantees most employees minimum wage as well as overtime for non-exempt employees, typically at a rate of one and one half times their regular rate of pay for all hours worked in excess of 40 hours in any work week.

This straightforward sounding law is often the source of much confusion and where employers fail to pay workers minimum wage or overtime compensation due, employees may have a claim for back wages.

Claims for violations of the FLSA may occur in the vast majority of jobs. In a recent case out of a New York – Schulte Roth & Zabel - a group of employees sued a law firm asserting they were denied overtime compensation over the course of several years. The employees worked as desk technicians and were given compensatory time off instead of overtime pay. However under the FLSA, except under certain circumstances, paid time off instead of overtime compensation is generally not allowed. Instead, you must be paid wages for overtime hours worked.

Although all the facts and circumstances of this particular case are unknown – the issue of overtime compensation versus paid time off is one that is common in many work situations.

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Hospital Workers Entitled To Unpaid Back Overtime

June 11, 2011

A Texas hospital has agreed to pay its employees several thousands of dollars in back wages for unpaid back overtime. The payment came as the result of a federal investigation into the hospital’s payroll practices that revealed employees had not been paid for overtime hours worked and for skipped meals during work hours.

The Fair Labor Standards Act (FLSA) provides that virtually all non-exempt employees are entitled to overtime compensation at a rate of one and one-half times their regular rate of pay. Although this rule sounds straightforward, it is complex and contains several exemptions. As a result, unpaid overtime claims are one of the most frequent employee complaints.

Due to the nature of their work, many cases involving hospital employees and overtime compensation have occurred across the country. Often, workers miss meals, or find their breaks cut-short or have to work longer hours than scheduled. Regardless of the reason, workers deserve to be paid for the time worked and employers may be found in violation of the FLSA if they fail to pay adequate overtime compensation.

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Summer Internships – When Does An “Unpaid Internship” Violate The Law?

June 4, 2011

As summer approaches and the recession continues many workers may consider taking an unpaid internship. Unpaid internships have many benefits for both employers and workers. They provide an opportunity for interns to learn skills, make connections and demonstrate their work ethic. Employers benefit by having eager workers assist them and receive training without having to pay.
However, the arrangement may also lead to exploitation. It is important for both workers and employers alike to understand what may be considered an unpaid internship and when an employer must provide proper compensation.

In order to clarify the rules, the Department of Labor has created an unpaid internship test that sets forth when workers must be paid. Generally, anyone making legitimate contributions to the workplace must be paid according to standard wage and hour laws.

The unpaid internship tests evaluates:

• If the training the intern will receive is similar to training he or she would receive in an academic environment;
• If the internship is for the benefit of the intern or the employer;
• If the intern is replacing an employee;
• If the company is deriving immediate advantage from the intern’s activities;
• If the intern entitled to full-time employment at the conclusion of the internship; and
• If both the intern and employer understand this will be an uncompensated position.

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