Unpaid Overtime Employer Liability Issues

News & Analysis as of

Should Voluntary Overtime Be Included When Calculating Holiday Pay?

Another decision has been handed down to clarify – or complicate – the position on which aspects of pay should be included when calculating an employee’s entitlement to holiday pay. The Court of Appeal in Northern...more

Worth the Fight: Conditional Certification of FLSA Collective Actions is Not Automatic

Conventional wisdom holds that courts reflexively grant motions for conditional certification in Fair Labor Standards Act (“FLSA”) collective actions. As a result, some employers do not even oppose these motions. They are...more

The Recent Auditor General Report and Central Pennsylvania Hospitals

In April, 2015, the Pennsylvania Auditor General released a Report that chastised the Department of Labor and Industry for its failure to implement adequate procedures to ensure that all complaints under the Prohibition of...more

California Court of Appeal Refuses to Enforce Forum Selection Clause Because Employer Would Not Stipulate to Apply California Law...

In Verdugo v. Alliantgroup, L.P., the California Court of Appeal held that a forum selection clause in an employment agreement was unenforceable because the employer could not prove that the employee’s rights under the...more

General Release May Not Preclude FLSA Claims Says Fifth Circuit

If I settle my employment lawsuit and release “all claims,” does that include wage-hour claims if the subject never came up? Last week, in Bodle, et al. v. TXL Mortgage Corporation, the Fifth Circuit said no....more

California Appellate Court Reverses Trial Court, Grants Motion To Compel Arbitration

A state appellate court in California reversed a trial court’s decision to deny defendant Santa Lucia Preserve Company’s (“Santa Lucia”) motion to compel arbitration, holding that plaintiffs failed to prove that the...more

Will DOL's Overtime Rule Revisions Fix the Outside Salesperson Exemption?

The Department of Labor’s long-anticipated revisions to its Part 541 overtime exemption regulations await Office of Management and Budget review before issuance in proposed form. The new rules follow President Obama’s...more

Eleventh Circuit Scraps Employer’s Defense in FLSA Claim for Overtime Wages

May an employee recover under the Fair Labor Standards Act for unpaid overtime even if it was his own fault that the overtime was unpaid? The Eleventh Circuit recently answered “Yes,” in the case of Bailey v. Titlemax of Ga.,...more

"Comp Time" is Attractive to Many Employers, but Serves as a Trap for the Unwary

Many employers seek to avoid paying overtime compensation by providing compensatory time off, or “comp time,” to non-exempt employees who work more than eight hours in a day or more than 40 hours per week. Although...more

Federal Wage Claims? That's The Easy Part!

Retailers are all too familiar with collective actions filed under the Fair Labor Standards Act (FLSA) making claims for unpaid overtime based on alleged misclassification of employees as exempt, working off the clock, or not...more

February 2015 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are a set of cases reported in February dealing with class action IC misclassification claims: the highest court in a key state agreeing to decide whether a worker-friendly test should be...more

Eleventh Circuit Rules That Employer Cannot Assert Worker Misconduct Equitable Defenses in FLSA Unpaid Overtime Claim Where...

The Eleventh Circuit Court of Appeals recently issued an opinion holding that an employer cannot assert equitable defenses based on an employee’s misconduct in under-reporting hours as a total bar to the employee’s FLSA claim...more

Employee's Failure to Report Off the Clock Work Not a Total Defense Says 11th Circuit

Last summer, we highlighted an example of how good recordkeeping practices can result in a favorable decision. In the Kaiser Foundation Health Plan case, the employer successfully defended an “unauthorized overtime” claim...more

I Falsified My Time Records … But I’m Still Suing You for Overtime

Employers sometimes rely on equitable arguments, such as “unclean hands” (which asserts that it would not be fair to hold an employer liable when the employee’s actions caused or contributed to his own injury or damages). But...more

Groundhog’s Day for Employers: The Same Mistakes Over and Over and Over…

I still consider Groundhog’s Day not only a great comedy, but also a great movie. Twenty-two years ago, the late Harold Ramis graced us with a tale about Phil Connors, a Pittsburgh TV weatherman, who finds himself repeating...more

Labor/Employment: New Minimum Wage and Overtime Exemption Thresholds for 2015

Wage and hour issues are a pervasive source of litigation in California and nationwide. To help mitigate this risk, tech industry companies in California need to be aware that certain minimum wage and overtime exemption...more

Healthcare Employer Lands in Patient-Privacy Predicament

Healthcare providers are required by law to maintain the privacy of most patient information, and there are good business reasons for medical practices to protect patients’ personal information. In a recent case, a medical...more

Trial Court Should Have Certified Class Claims Of Managerial Employees

Roberto Martinez and three other current or former employees of Joe’s Crab Shack (“JCS”) filed this putative class action asserting that they and similarly situated salaried managerial employees had been misclassified as...more

Eleventh Circuit Rejects Equitable Defenses to FLSA Claim Where Employer Aware of Underreported Hours

The United States Court of Appeals for the Eleventh Circuit recently held that an employer that has knowledge that an employee underreported his hours cannot assert equitable defenses based on the employee’s own conduct as a...more

Mendiola Decision Highlights a Key Issue - The Calculation of "Hours Worked"

The continuing stream of lawsuits challenging employers’ payroll practices is well-documented. A large portion of wage and hour lawsuits seek to recover overtime compensation that should have been paid to employees who were...more

Ninth Circuit Issues Companion Cases Addressing Evidence Required To Show That The Amount In Controversy Requirement Has Been Met...

Through a pair of opinions issued the same day, the Ninth Circuit attempted to clarify the evidence required for a defendant to meet its burden of showing that the amount in controversy exceeds CAFA’s $5 million threshold...more

Sixth Circuit Revisits FLSA Compliance During Employee Meal Periods

In Ruffin v. MotorCity Casino, the Sixth Circuit Court of Appeals considered whether casino security guards, required to remain on casino property during meal periods, monitor two-way radios, and respond to emergencies if...more

Exempt vs. Non-Exempt: Have You Properly Classified Your Employees?

The Issue: Which employees are exempt from overtime laws? The Solution: Exempt employees are those whose job compensation and duties meet the federal and state requirements for overtime exemption....more

Insurance Industry Wins Temporary FLSA Exemption for Insurance Adjusters in CRomnibus

On Tuesday, we discussed Congress’s passage of the Consolidated and Further Continuing Appropriations Act, 2015, nicknamed CRomnibus in the waning days of the 2014 legislative session. The omnibus spending bill avoided...more

California District Court Finds that CAFA’s Amount-in-Controversy Requirement was Satisfied; Denies Motion to Remand

The U.S. District Court for the Northern District of California denied plaintiff’s motion to remand, holding that plaintiff’s claim for unpaid wages and overtime satisfied CAFA’s amount-in-controversy requirement. ...more

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