Overtime Lawyer Blog

A Minnesota court recently determined that a pizza delivery driver for “Domino’s Pizza” is similarly situated with nearly 22,000 current and former delivery drivers. As a result, the Domino’s employee may bring his claim on behalf of the nearly nationwide class that Domino’s violated the Fair Labor Standards Act (FLSA) by not paying its drivers the federal minimum wage.

The current federal minimum wage is $6.55 per hour, although in a few states – unfortunately not Georgia – the minimum wage is higher.

In Luiken v. Domino’s Pizza, the court reviewed whether a compensation scheme that was based certain factors such as drivers’ fuel economy, maintenance, operating and other fixed costs but did not reimburse for actual delivery costs ended up paying drivers less than the federal minimum wage. In 2009, the delivery driver filed a suit on behalf of current and former delivery drivers from 2006 to the present for unpaid wages and liquidated damages.

Domino's argued that the drivers’ reimbursement rates varied by region and should not be allowed to proceed as a class. The court disagreed, concluding that all drivers were subject to the same nationwide policy. The court also stated that it was exercising its discretion to provide notice to all potential class members due to the large size and geographic scope affected.

Often a company may follow a policy that on its face seems fair, but in practice violates the FLSA – either by denying its workers minimum wage or all overtime compensation due. In Luiken, the policy in question met federal minimum wage standards on its face, but on closer look, the actual wages earned fell below the minimum wage requirements.

Continue reading "Dominos Pizza Delivery Drivers Similarly Situated Under The FLSADominos Pizza Delivery Drivers Similarly Situated Under The FLSA" »

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Posted In: Minimum Wage

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Many college students look forward to the summer as an opportunity to gain experience in the work place before getting their first “real job.” One way to do this is to be hired as an unpaid intern at a company. Interns agree to forego pay for in exchange for hands-on experience. However, recent reports have detailed employers taking advantage of interns as a source of free labor.

In order to provide guidance regarding this growing problem, the Department of Labor has just issued a fact sheet detailing what constitutes an internship and when it is fair not to pay interns.

To qualify as an unpaid internship the following criteria must be met:

• The training must be similar to that received in an educational environment
• The experience is for the benefit of the intern
• The intern isn’t taking the place of regular employees
• The employer isn’t deriving an immediate benefit from the intern, and may in fact be slightly burdened
• The intern is not entitled to a job at the end of the internship
• The intern understands that he or she is not entitled to compensation

In most situations, internships at “for-profit” private sector jobs are considered “employment” and subject to the Fair Labor Standards Act (FLSA). Hence, if you work at a Georgia company as intern and each of the 6 factors are not present, you may be entitled to minimum wages and overtime. Under the FLSA, Georgia workers are entitled to $6.55/hour and overtime at a rate of one and one-half your regular rate of pay for all hours in excess of 40 hours in any workweek.

Continue reading "Most Georgia Interns Entitled To Minimum Wages and Overtime" »

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Posted In: Minimum Wage , Overtime for Professionals

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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:

Continue reading "Minor Lifeguards and the FLSA" »

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Posted In: Minimum Wage , Minors

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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.

Continue reading "Fast Food and Restaurant Workers and the FLSA" »

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Posted In: Fast Food , Minimum Wage , Restaurants , Tip Credit

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Because we just recently launched the Overtime Lawyer Blog, we didn’t get a chance to update you on an important FLSA development that happened last summer. On July 24, 2008, the minimum wage increased from $5.85 to $6.55 per hour.

If you are in a minimum wage job, make sure to review your paychecks closely to ensure that you are being paid at the new higher rate. And if you are receiving overtime, also make sure to check that your overtime pay is being calculated on the new higher rate. If you have been working since July and your checks were not based on the new higher rate, you are entitled to be made whole for all work weeks in which you didn’t receive the higher minimum wage or the correct amount of overtime pay.

And if you are an employed in the State of Georgia, even though the Georgia minimum wage is lower than the federal minimum wage (it is currently $5.15 per hour), you’re still entitled to the higher federal minimum wage—don’t let an unscrupulous or ill-advised Georgia employer convince you that it only needs to pay you at the lower Georgia rate.

Continue reading "Minimum Wage Update" »

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Posted In: Minimum Wage

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