Unpaid Overtime Employer Liability Issues

News & Analysis as of

Paid Breaks Cannot Offset Overtime Obligations

Neither the federal Fair Labor Standards Act nor wage payment laws in place in most states require that employers provide non-exempt employees with paid meal and other breaks. However, employers commonly offer employees paid...more

Café Manager Seeks Class Action for Overtime Pay

A Chicago-based Barnes & Noble Café Manager filed a collective action on September 20, 2016 in federal court, Southern District of New York, seeking overtime compensation for herself and similarly situated individuals who...more

Wage and Hour Compliance: 80% of Employers Likely Out of Compliance

The U.S. Department of Labor recently settled a lawsuit filed by the American Federation of Government Employees Local 12 for $7 million. The lawsuit, filed a decade ago, claimed that Labor Department employees had not been...more

Labor Department Settles Overtime Pay Dispute with Its Own Employees

The Department of Labor (DOL) has agreed to pay $7 million to resolve claims that it failed to pay overtime to thousands of its own employees. The settlement reached with the American Federation of Government Employees Local...more

FLSA Conditional Certification Denied in NYS for 5,000 Home Care Workers

In a case with far reaching implications, Cowell v. Utopia Home Care, Inc., 2:14-cv-00736-LDW-SIL, Magistrate Judge Steven Locke of the Eastern District of New York (covering Brooklyn, Queens and Long island) ruled that...more

Emerging Labor & Employment Law Trends (Part 1)

With summer 2016 almost behind us, employers should begin to plan for the major labor and employment law trends expected to emerge in the final quarter of the year and into 2017. In the first part of this two-part series, we...more

Employment Law Roundup: Summary of Recent Changes Affecting New York Employers

Private employers in New York should be aware of a number of employment law changes over the past year that affect background checks (both credit and criminal history), anti-discrimination protections and reasonable...more

Employment Practices Newsletter - June 2016

EEOC Issues Final Regulations on Wellness Programs - It seems to be a win-win when employers who provide employees with incentives to encourage healthy behavior. But employers that do so must contend with an alphabet...more

Understanding the Final Overtime Rule: Is it really that Simple?

According to the U.S. Department of Labor (DOL), the Final Overtime Rule, which is effective on December 1, 2016, simplifies the regulations to make them easier for employees and employers to understand and apply. Really? ...more

Approval of the DOL's Changes to the Overtime Exemption Rules Is Imminent

Last year, the U.S. Department of Labor (DOL) proposed rules to increase the salary level for employees exempt from overtime under the Fair Labor Standards Act (FLSA). The proposed rules sought to increase the salary level...more

California Wage & Hour: Employer Q&A

Recently, the California Labor Commissioner cited a residential care provider for multiple wage theft violations, including for failure to pay minimum wage and overtime. As a result of the Labor Commissioner’s...more

New York District Court Grants Summary Judgment for Employer in Gawker Intern Case

Litigation Over Interns Dries Up Internship Opportunities - The natural and probable consequence of litigation over unpaid internships was that such opportunities would disappear because the risk of litigation for even...more

Increased Litigation Of Worker Misclassification Cases Should Place Employers On Notice Of Potential FLSA Violations

Worker misclassification violations under the Fair Labor Standards Act (FLSA) continue to be at the forefront of the U.S. Department of Labor's (DOL) enforcement priority list and of the plaintiffs' bar, which has filed...more

Unpaid Internships

The idea of offering unpaid internships is attractive for startups trying to maximize their labor force while minimizing spending. However, using unpaid interns can pose significant legal risks. This post will help you...more

Employer Beware: Be Prepared for New Labor Regulations Coming in 2016

The Fair Labor Standards Act (“FLSA”) is quite possibly the labor law that employers grapple with more than any other. The regulations can be murky at best when actually applied and the price tag for running afoul of the...more

FRANCHISOR 101: 10 Ways Franchisors Can Reduce Vicarious Liability Risks

The U.S. Department of Labor says McDonald's is liable for actions of franchisees. In the last three months a California federal court said McDonald's could be liable for a franchisee's alleged failure to pay overtime and...more

Labor and Employment News: Verdict Against High Profile Law Firm Highlights Risk of Double Damages in Wage Cases

On October 29, a Hartford jury awarded $262,930 in a wage dispute against the Haymond Law Firm, P.C. Of particular significance, the Judge permitted the jury to apply the new statutory standard for doubling...more

Can a Prevailing Plaintiff Recover Expert Fees? The Second Circuit Says “No”

The Second Circuit Court of Appeals recently ruled that expert witness fees are not recoverable under the Fair Labor Standards Act (FLSA). In Gortat v. Capala Brothers, Inc., No. 14-3304-cv (July 29, 2015), the Second Circuit...more

Eleventh Circuit adopts and clarifies "primary beneficiary" test for unpaid interns under the FLSA

On September 11, 2015, the US Court of Appeals for the Eleventh Circuit handed down a landmark decision clarifying the circumstances under which unpaid interns are entitled to receive compensation under the Fair Labor...more

Rethinking the 24/7 Response

Always connected. Always available. Always responsive. In an era where personal electronic devices have become more of a technological appendage than merely a handy gadget, a growing number of employers are grappling with the...more

Health Law Wire: FLSA Exemption for Domestic Workers Upheld by DC Circuit (8/21/15)

This morning, the United States Court of Appeals for the District of Columbia upheld the federal Department of Labor’s revisions to the “companionship exemption” under the Federal Labor Standards Act. Home Care Association of...more

Sirius XM Settles Wage & Hour Class Action With Unpaid Interns

Earlier this month Sirius XM Radio Inc. settled a wage & hour class action with a class of 1,852 unpaid interns that claimed the company violated federal and state labor laws by failing to compensate them for the work they...more

Second Circuit Rules Court Approval or USDOL Supervision of Settlements Required in FLSA Suits

On August 7, 2015, the Second Circuit ruled that suits brought under the Fair Labor Standards Act (“FLSA”) cannot be resolved privately and require approval of a federal court or supervision by the U.S. Department of Labor...more

One-Time Anomaly Or Potential Turning Of The Tides? A Review Of The Supreme Court's 2014-2015 Term

In a marked departure from the overwhelming success employers experienced before the Supreme Court in recent years, the less successful recently wrapped 2014-2015 term could be an indication that the judicial tides may be...more

Immigration-Related Documents and Information Not Discoverable in Wage and Hour Lawsuit

A New York federal court recently said that the plaintiff-employees involved in a wage and hour lawsuit are not required to produce their immigration documents and information. The case is important because it limits an...more

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