News & Analysis as of

Unpaid Overtime Misclassification

Cozen O'Connor

IL AG Settles Employee Misclassification and Wage Theft Claims With Construction Company

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Illinois AG Kwame Raoul settled with TBJ Drywall & Taping, Inc. (TBJ), resolving allegations that the company misclassified employees and failed to pay overtime wages in violation of state labor and employment laws....more

Carlton Fields

Alabama Federal Court Seals and Approves FLSA Settlement Agreement, Addresses Confidentiality Provision

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The plaintiff was employed by defendant Pilot Catastrophe Services Inc. as an insurance claims adjuster, where she was responsible for inspecting property damage claims and providing damage estimates to insurance companies....more

Jackson Lewis P.C.

Lessons for Construction Industry in Labor Board’s New Test to Classify Independent Contractors

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The National Labor Relations Board (NLRB) has made finding independent contractor status harder under the National Labor Relations Act. The Atlanta Opera, Inc., 372 NLRB No. 95 (2023). This decision may significantly affect...more

Kohrman Jackson & Krantz LLP

Can the Justices Add Clarity to the Salary Basis Test for White Collar Overtime Exemptions?

The U.S. Supreme Court has accepted the Petition for Certiorari of Helix Energy Solutions Group, Inc. to review an issue splitting the federal Courts of Appeals under the Fair Labor Standards Act (FLSA). The Justices have...more

Fisher Phillips

Florida Home Healthcare Worker Found to be Misclassified as Contractor – An Employer’s Survival Guide to Avoid Similar Fate

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In a stunningly broad ruling that should send shivers down the spine of every home healthcare agency that uses an independent contractor workforce, a Florida federal court ruled on April 12 that a home healthcare worker who...more

Bradley Arant Boult Cummings LLP

Turning the Other Cheek(s): Second Circuit Mandates Court Review of Dismissal of FLSA Case Without Prejudice

What is the right way to dismiss a case the parties have settled, and are FLSA cases different? Typically, when parties to a lawsuit settle a case, they merely alert the court of the settlement and then file a stipulation of...more

Venable LLP

FLSA Misclassification: Common Mistakes That Employers Make When Classifying Their Employees as "Exempt" from Overtime...

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In 2021, the U.S. Department of Labor (DOL) collected a whopping $234 million in back wages for nearly 200,000 employees who the DOL determined were not paid in accordance with the Fair Labor Standards Act (FLSA). Experts...more

Fox Rothschild LLP

Costco Wins Independent Contractor Case: Is The Tide (Hopefully) Changing?

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There are so many independent contractor cases that go against the employers that when one goes the other way, it is a big deal. That is what has just happened with a Costco contractor who alleged the Company misclassified...more

Jackson Lewis P.C.

Class Action Trends Report, Fall 2021

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The Fall 2021 edition of the Jackson Lewis Class Action Trends Report looks at the class action risks that arise as employers navigate return-to-work during this precarious stage of the COVID-19 pandemic. Employee symptom...more

McCarter & English, LLP

Massachusetts’ Strictest-In-The-Nation Definition Of “Employee” May Encompass Franchise Operators

When a worker is classified as an employee, a panoply of local, state, and federal laws regulate many facets of the relationship between the worker and the person or entity the worker serves. When a worker is not an...more

Jaburg Wilk

Six Overtime Risks for Arizona Contractors

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It is estimated that as many as 75% of Arizona contractors are not paying their employees overtime properly. If the U.S. Department of Labor ("DOL") conducts an audit, the results can be devastating to an employer. The...more

Sherman & Howard L.L.C.

High Daily Pay Rates Can Satisfy FLSA’s Salary Exemption

The U.S. District Court for the District of Colorado decided that a sufficiently high day rate, although not a “salary” per se, was sufficient to satisfy the “salary basis” requirement for the FLSA’s white collar exemptions....more

Smith Gambrell Russell

Virginia Passes Overtime Wage Act

On March 20, 2021, Governor Ralph Northam signed the Virginia Overtime Wage Act into law. Beginning on July 1, 2021, the Virginia Overtime Wage Act (“VOWA”) will go into effect resulting in new overtime rules far broader...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Appeals Court Clarifies Issues Regarding Overtime Compensation Defenses

Employees who claim that their employers misclassified them as exempt from the overtime requirements of Massachusetts law frequently attempt to recover overtime pay for hours worked outside the statute of limitations...more

Bradley Arant Boult Cummings LLP

Sixth Circuit Scrubs Attempted Snub of Arbitration of Grubhub Paystub Hubbub

There have been many examples of the tension between the “gig economy” and traditional labor laws. Most of the companies like Uber or Grubhub choose to classify their drivers as independent contractors instead of employees,...more

ArentFox Schiff

Burlington Coat Left Out in the Cold After Massive FLSA Settlement

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After nearly nine years of litigation, Burlington Coat Factory agreed to pay $19.6 million to end a collective action and a putative class action alleging claims for misclassification and unpaid overtime wages. The cases...more

BakerHostetler

Maryland District Court Grants Summary Judgment Against Collective Class in Claimed Misclassification Case

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Misclassification cases are grist for the mill in wage and hour litigation. As we have pointed out previously, the typical pattern is for the plaintiff to assert claims for unpaid overtime on the grounds that the position...more

Jackson Lewis P.C.

Limousine Service Employee Was Properly Classified As Exempt, Second Circuit Holds

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Upholding a jury verdict in favor of the defendant “black car” (limousine service) company, the U.S. Court of Appeals for the Second Circuit concluded that the plaintiff-employee was properly classified as overtime-exempt...more

FordHarrison

Fifth Circuit Provides Positive Guidance on Independent Contractor Classification

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Applying the “economic realities” test, the Fifth Circuit (with jurisdiction over federal courts in Louisiana, Mississippi, and Texas) recently held that a consultant for an oil and gas company was not subject to FLSA...more

Holland & Hart - Employers' Lawyers

FLSA and the Cannabis Industry: 10th Circuit Rejects ‘Illegality’ Defense

Although legal for medical and recreational use in Colorado, cannabis is still federally classified as an illegal Schedule 1 substance. As such, tension results when considering the applicability of federal employment...more

Jackson Walker

Millions of Employees Now Entitled to Overtime Under FLSA Final Rule

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On September 24, 2019, the Department of Labor issued an updated Final Rule on the Fair Labor Standards Act’s (FLSA) salary test threshold. Effective January 1, 2020, the Final Rule culminates over three years of activity...more

Seyfarth Shaw LLP

The 10th Circuit Grants Re-Leaf to Workers Seeking Overtime Under the FLSA

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Seyfarth Synopsis: the 10th Circuit has held that the FLSA applies to workers in the marijuana industry....more

Proskauer - Law and the Workplace

The New Federal Overtime Rule: What You Need to Know

The U.S. Department of Labor issued its final rule amending the overtime regulations today, without any significant changes from the proposed rule the agency issued in March 2019.  Here’s the bottom line....more

Stokes Wagner

DOL Issues New Overtime Exemption Rule

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The U.S. Department of Labor released its highly anticipated final rule governing the new salary threshold for the “white collar” overtime exemptions. Effective January 1, 2020, the final rule raises the salary threshold for...more

Parker Poe Adams & Bernstein LLP

How Downsizing or Restructuring Can Impact the Executive Overtime Exemption

In recent months, we have had several situations where clients were assessed back wages for overtime relating to misclassification of managerial employees. Under 29 C.F.R. §541.104, employees eligible for the executive...more

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