Monthly Archives: September 2021

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|

Employer relied on opinion letter and lost big in court: avoid its mistake

Actual language in law matters more than its interpretation Opinion letters from agencies like the Dept. of Labor provide employers with helpful guidance. But beware, they aren't the be-all and end-all for wage and hour law. Relying too heavily on opinion letters can be a big mistake, as one employer learned after a recent lawsuit [...]

September 3rd, 2021|Department of Labor, labor regulations|