The plaintiff sought more than $12,000 in unpaid wages on his FLSA claims, rejected the defendant employer’s Rule 68 offer of judgment of $3,500 on those claims, and then was awarded only $97.20 plus an equal amount of liquidated damages. Under these circumstances, the Eleventh Circuit held that the trial court properly awarded the defendant … Continue Reading
Rejecting employer Timberline South’s argument, among others, that FLSA coverage did not apply because all of its timber harvesting occurred only within one state, the Sixth Circuit Court of Appeals nevertheless concluded that the commuting and meal break times should not have been included in the trial court’s calculation of overtime damages. Secretary of Labor v. … Continue Reading
Courts addressing FLSA misclassification claims brought by employees classified as salaried exempt workers must determine damages. In a new decision from the United States District Court for the Eastern District of Louisiana, Judge Jane Triche Milazzo ruled that successful Plaintiffs in one such misclassification case are only entitled to “half-time” damages. Further, the Court ruled … Continue Reading
The FLSA generally governs only the payment of minimum wages and overtime. It does not govern unpaid wage claims that do not result in a minimum wage or overtime violation—e.g., a claim brought by an employee that he worked 39 hours, but was only paid for 35 (sometimes referred to as a “gap time” claim). … Continue Reading
On March 22, 2014, Maryland’s highest court issued a new ruling regarding the scope of an employee’s right to file a lawsuit for unpaid wages under the Maryland Wage Payment and Collection Law (the “MWPCL”), Maryland’s principal wage payment statute. In Marshall v. Safeway, the Maryland Court of Appeals held that an employee may bring … Continue Reading
"As the season for sweet onions ends, another onion farm labor dispute begins," observes Judge B. Avant Edenfield of the Southern District of Georgia in a new opinion, commenting upon the flurry of FLSA lawsuits filed in recent years in the American Southeast arising out of labor conditions at large farming concerns utilizing immigrant workers. Judge … Continue Reading
In the still unresolved FLSA litigation concerning alleged unpaid overtime brought by a former personal assistant to entertainer Stefani Germanotta a/k/a Lady Gaga, Judge Paul Gardephe of the Southern District of New York has issued a lengthy ruling addressing some of the asserted claims and defenses. The Court concluded that plaintiff’s New York state law claims … Continue Reading
In a decision issued on August 16, 2013, the Court of Appeals for the Fifth Circuit, building on its now-venerable ruling in Blackmon v. Brookshire Grocery Co., 835 F.2d 1135 (5th Cir. 1988), reversed a trial court ruling that refused to apply the “half time” measure of damages in an FLSA misclassification case. Ransom v. M. … Continue Reading
Addressing a divided body of law, the Court of Appeals for the Eleventh Circuit — where numerous FLSA actions are brought particularly within the state of Florida — has ruled that a Florida district court did not err when it declined to award 100% FLSA liquidated damages to several plaintiffs who prevailed at a jury … Continue Reading
As both lawyers and non-lawyers understand, overtime wages customarily are paid in cash, notwithstanding that the definition of “wages” under the FLSA incorporates “board, lodging, or other facilities.” 29 U.S.C. § 203(m). Employers providing non-monetary benefits to employees sometimes argue that such benefits are “facilities” within the meaning of the statute and thus should be credited against … Continue Reading
In Florida, where state law only obligates employers to pay minimum wage (but not overtime) and FLSA litigation remains rampant, the FLSA limitations period is of particular importance in overtime disputes, particularly in regard to whether the limitations period is extended from two to three years based on a finding that the violation was “willful.” 29 … Continue Reading
One oft-invoked disincentive to employers’ litigating FLSA claims (specifically non-class or collective claims) is the statute’s fee shifting provision: when a plaintiff prevails (however nominally), he is entitled to have his “reasonable” attorneys’ fees paid by the employer defendant (however the principle does not apply to a defense victory). In such cases, the individual plaintiff’s damages may … Continue Reading
As previously discussed in this blog, many (if not most) courts agree that an employee who receives a fixed salary for varying hours of work has a “clear mutual understanding” with his/her employer that such salary covers all hours of work, and that in the event overtime is deemed owed because the employee was not … Continue Reading
Section 260 of the FLSA provides a defense to liquidated damages where an employer has acted in “good faith.” This test requires both subjective good faith (a belief the employer is proceeding lawfully) and objective reasonableness. A recent appellate decision addresses this second requirement. Mumby v. Pure Energy Servs. (USA), Inc., 2011 U.S. Appl. LEXIS 3460 (10th Cir. … Continue Reading
As previously discussed here and here, several Circuit courts have recently upheld use of the “half time” calculation of damages in FLSA misclassification cases. Urnikis-Negro v. Am. Family Prop. Servs., — F.3d. —, No. 08-3117, 2010 U.S. App. LEXIS 16126 (7th Cir. 2010); Desmond v. PNGI Charles Town Gaming, L.L.C., 2011 U.S. App. LEXIS 702 (4th Cir. Jan. … Continue Reading
It is well understood that employees misclassified as exempt under the FLSA are entitled to overtime pay for hours worked in excess of forty in a week. However, while the United States Department of Labor takes the position that any unpaid overtime is calculated using the “half-time” method, not all of the Circuit Courts have confirmed … Continue Reading
The Fair Labor Standards Act requires employers to pay non-exempt employees one and one half times their regular rate of pay for any hours worked in a workweek in excess of 40. United States Department of Labor regulations, as set forth in 29 C.F.R. § 778.114(a), allow an employer to utilize the fluctuating workweek (“FWW”) method … Continue Reading
As discussed here, an employer’s maintenance of accurate records of hours worked by employees is not only a substantive requirement of the FLSA, but an essential component to defending against “off the clock” claims. But what happens if an employee brings such a claim and the employer has not maintained records? Is the employer defenseless? The … Continue Reading
Under the FLSA (and most state laws), the fluctuating workweek method (FWW) of overtime payment allows employers to reduce overtime expense by paying “half time” for all overtime hours if the following four factors are satisfied: 1) employees’ hours fluctuate from week; (2) employees receive a fixed salary each week that does not vary with … Continue Reading
The FLSA, as we know, is structured largely on a “workweek basis.” See, e.g. Bright v. Houston Northwest Medical Center Survivor, Inc., 934 F.2d 671, 678 (5th Cir. 1991). The standalone nature of each workweek can have draconian results for employers who overpay (intentionally or otherwise) in some workweeks, but underpay in others, as offsets generally only … Continue Reading
