Overtime Lawyer Blog

The LA times reveals that the California labor commissioner has sued ZipRealty for nearly $18 million in a minimum wage case. At issue, the failure of the company to pay minimum wages and overtime compensation to hundreds of agents throughout the state.

Both federal and state laws set forth certain minimum wage and overtime standards applicable to nearly all U.S. employers. Federal minimum wage law – the Fair Labor Standards Act – requires that workers be paid a minimum $7.25 hour. California’s minimum wage is currently set at $8.00, and worker’s are entitled to be paid at this higher amount.

Even with the higher minimum wage, studies reveal that the 20% of American adults who earn $10.65/hour or less, even at 40 hours a week, this amounts to less than $22,314 the poverty level for a family of four.

ZipRealty is a real estate company that makes sales both statewide and nationally on the Internet, while relying on on-line employees to respond to questions and close on the deals. A stated by the California Labor Commissioner “In times like these, enforcement of the minimum wage is critical to maintaining a floor that allows workers to survive.”

Added the director of the state Department of Industrial Relations, “This case is a symptom of growing problems in the recession-wracked labor market.” Violations of minimum labor standards are now occurring in a wide variety of occupations.”

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News reports that Tyson Food Inc. has agreed to settle a wage and hour lawsuit for $32 million. The settlement is in response to a complaint filed by workers that Tyson failed to adequately compensated the employees for time spent “donning and doffing” personal protective equipment (PPE). As part of the wage and hour settlement, Tyson has agreed to pay about 17,000 current and former U.S. employees an average of $1000/each. This represents pay for an additional eight minutes each workday needed to put on and take off clothing and equipment.

The federal Fair Labor Standards Act (FLSA) provides that workers are entitled to be compensated for all hours worked, including overtime for all employees who are not exempt under the FLSA. Overtime wages are calculated and one and one-half times a worker’s regular rate of pay. Several donning and doffing lawsuits have been filed across the country, seeking back wages and damages against companies that have failed to pay employees for the time spent donning and doffing safety equipment.

In 2005, the United States ruled that employers are required to pay employees for the time it takes to walk to and from a production line, after putting on and before taking off required safety equipment, as well as the time spent waiting to take off PPE. A failure to compensate employees for this time may be considered a violation of the FLSA.

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Hundreds of Groupon employees have recently filed an overtime pay lawsuit against Groupon, alleging it violated the Fair Labor Standards Act by failing to pay overtime compensation. The lawsuit seeks back wages and punitive damages.

Under federal wage and hour law, all employees who are not exempt must receive overtime pay at a rate of one and one-half their regular rate of pay for all hours worked in excess of 40 hours in any workweek. Although this sounds like a simple rule, it is often confusing to employees and employers alike, with overtime pay violations a leading cause of employment litigation. If you have questions concerning your pay – and whether your employer is providing you all the compensation you are entitled to – it’s important to consult with an experienced wage and hour law firm.

According to the lawsuit, Groupon failed to pay overtime, violated wage laws and didn’t pay workers enough. At issue is the compensation of sales reps who did not receive overtime pay from the time the company was founded in 2008 until last spring when the problem was discovered. Employees were told they would receive back wages to correct the oversight, but have not been compensated. The lawsuit may turn into a class-action.

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Recently the Department of Labor announced that it would be investigating homebuilders to see if they are paying workers the overtime pay and minimum wage they deserve. The move is part of a growing national concern that workers in many industries are not receiving sufficient pay.

The Fair Labor Standards Act provides that employees must earned minimum wages (typically $7.25/hour) and that all employees who are not exempt from the FLSA be paid at a rate of one and one half their regular rate of pay for all hours worked in excess of 40 hours in any work week. Despite this simple sounding rule, overtime laws are incredibly complex and are the source of much employment litigation.

Members of the trade group Builders of America have recently received letters asking for detailed payroll information. How construction workers are paid can create confusion since many times contractors are not paid directly but through subcontractors. As with any type of work however, it is critical you are paid what you deserve.

One of the most important factors in determining whether you are entitled to overtime pay for your work is if you are exempt. Exemptions provide that if you make more than a certain amount per week and perform a certain type of work, then you are not entitled to overtime pay, no matter how many hours you work. However, if you are non-exempt, then your employer must pay you time and a half for every hour worked more than 40 in any workweek.

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