Fair Labor Standards Act (FLSA)

Delivery drivers owed mileage reimbursement

Sandwich shop franchises (Clemson Subs LLC and Anderson Subs LLC in Anderson, SC) was found to have broken the minimum wage provisions of the Fair Labor Standards Act by failing to reimburse employees for mileage. Employees who delivered food weren’t reimbursed for their mileage expenses, which caused their pay to fall below the federal minimum [...]

February 8th, 2022|compensation, Fair Labor Standards Act (FLSA), reimbursement|

OT issues put firm on wrong side of the law

Slocumb Law Firm LLC in Auburn AL paid $26,496 in back wages and damages to 42 workers for violation of the recordkeeping and overtime provisions of the Fair Labor Standards Act. The employees didn’t receive overtime pay when they worked more than 40 hours during a workweek. The law firm also didn’t keep accurate records [...]

Workers paying for uniforms? Or for cleaning them? Think again.

In two recent cases, employers were fined for violating minimum wage laws related to uniforms. Denny's in Houston was fined under the Fair Labor Standards Act for deducting the cost of workers' uniforms, since those deductions caused their pay to fall below minimum wage. In violation of New York state labor law, Eulen America, an [...]

November 4th, 2021|deductions, Fair Labor Standards Act (FLSA)|

Misclassifying workers cost employer $358K

Servant's Quest in Oliver Springs TN, a home health care business, paid $358,675 in back wages to 50 workers. They were found in violation of the overtime provisions of the Fair Labor Standards Act (FLSA). Servant's Quest misclassified caregivers as independent contractors and paid them straight-time rates for hours worked over 40 in a workweek.

Employee’s case on charitable pay deductions fails: why employer won

Lawsuit claimed worker was "pressured" to make donations Charitable deductions straight from paychecks can be a great way for employees to easily donate to valuable causes. But just as with other wage deductions, the rules must be followed when Payroll sets them up. One employer did everything right with its voluntary payroll deductions for an [...]

September 17th, 2021|deductions, Fair Labor Standards Act (FLSA)|

New job responsibilities? Court case is reminder to reassess exempt status

Worker claimed employer's violations were "willful" When an employee's job responsibilities shift, perhaps as part of a company reorganization, it's important to ask: Does that person's exemt or nonexempt status in the payroll system need to change? One New York company had to defend itself in a Fair Labor Standards Act (FLSA) lawsuit because a [...]

September 10th, 2021|Fair Labor Standards Act (FLSA), Overtime|

Switching payroll cycles? Here’s how to make sure you’re in compliance

Recent lawsuit shows employers right way to make the change It's sometimes necessary to change your pay cycle. In this situation, it's key to proceed with caution. Along with any compliance and legal issues that may arise due to state prompt-payment laws, you'll have to address workers' concerns about their checks. One company's pay change [...]

August 21st, 2021|compensation, Fair Labor Standards Act (FLSA)|

Grocery store fails to pay workers correctly for OT

Employer: Supermercado Lomabonita, St. Paul MN Business: Grocery store Law broken: Overtime provision of the Fair Labor Standards Act Type of violation: The employer didn't combine hours employees worked at multiple store sites during the week, meaning they weren't paid overtime for hours worked over 40. In addition, some workers were incorrectly classified as exempt [...]

July 16th, 2021|compensation, Fair Labor Standards Act (FLSA), Overtime|

Deducting from wages for damaged property: employer’s big mistake

Employers that make deductions from employees' wages for damaged or missing equipment must follow the law carefully to stay out of hot water. In Galleher v. Artisanal LLC, an employer ended up in court because of its practice of regularly deducting the cost of any broken property, such as dishes and glassware, from workers' paychecks. [...]

June 25th, 2021|deductions, Fair Labor Standards Act (FLSA)|

Electronic FLSA notices: when DOL says they’re OK

Whether or not employees are still working remotely to prevent the spread of the coronavirus, the Dept. of Labor (DOL) expects employers to comply with notice guidelines under federal law, though there is some flexibility. While employers must still post a printed, hard-copy notice on site to meet the requirements of the Fair Labor Standards [...]

June 9th, 2021|deductions, Fair Labor Standards Act (FLSA)|