› $580,975,000 verdict in consumer fraud case
Three former Northwestern Mutual Life Insurance Company employees who filed a $200-million class-action lawsuit against the company claim they were deprived of minimum wages and overtime pay. The plaintiffs filed the lawsuit in federal court in San Diego, alleging Northwest Mutual misclassified them and hundreds of other employees as independent contractors to save money.
Hurricane Katrina, a powerful storm surge, and a system of inadequate levies teamed up in 2005 to create an unprecedented level of disaster in the United States. In the wake that followed, New Orleans (along with many other coastal communities in Louisiana, Mississippi, and Alabama) resembled a sea of destruction. New Orleans relied heavily on day laborers to clean up, repair, and rebuild. Sadly, however, recent surveys found that 80% of the Hispanic workers had been cheated out of compensation.
The Times Union of Saratoga, New York, published an editorial calling attention to a bill that has stalled in the New York legislature as the state’s Senate fights over which party leads the chamber. The Farmworkers Omnibus Labor Standards Bill seeks to secure some of the most basic labor rights to migrant laborers and other agricultural workers – rights that have protected workers in other industries since the Fair Labor Standards Act established a 40-hour work week and a minimum wage more than 70 years ago.
A Nashville car wash company has reached a settlement with three employees who claim they weren’t paid for several hours of work. The minimum-wage employees sued Shur-Brite Hi Speed Car Wash, alleging the company’s owners clocked them in and out throughout the day, depending on how busy their work shifts were. The agreed settlement for $130,000 will be distributed among 120 employees, who, like the plaintiffs, weren’t being paid for hours spent on the job.
Build-A-Bear-Workshop Inc. is listed on Fortune’s 2009 list of the “100 Best Companies to Work for,” but the U.S. Department of Labor’s Wage and Hour Division disagrees — at least where the company’s youngest employees are concerned. The government agency cited the St. Louis-based company for violations of child labor provisions of the Fair Labor Standards Act and ordered it to pay $25,600 in civil penalties.
The U.S. Department of Labor’s Wage and hour Division has ordered a Suwanee, Georgia-based demolition company to pay a steep penalty for violating child labor laws after a teenage employee died on the work site. The teenager, an employee of Demon Demo Inc., was working on a demolition site at Macy’s in the Gwinnett Place Mall when he fell from the third story of the building. The boy had been tossing debris off the building when he fell.
The Department of Labor’s Wage and Hour Division, under which the Fair Labor Standards Act came into existence in 1938 as part of a nationwide effort to protect working class citizens from corporate exploitation and abuse, may be on the mend after an long era of being little more than a bureaucratic entity.
If a group of Brazilian workers is believed, some U.S. companies are still practicing a form of indentured servitude. According to a lawsuit filed in U.S. Distrcit Court for the Southern District of Mississippi, a group of Brazilian welders and pipefitters came to the U.S. as temporary H-2B guest workers for American recruiters that provide workers for shipyards. According to the suit, the workers came to this country “on promises of consistent, well compensated work at a reputable shipyard through a regulated U.S. government program.”
Violating the rules of employment set forth in the Fair Labor Standards Act can be an expensive way to do business. In August of 2007, a federal judge in the U.S. Central District Court for California in Santa Ana ordered Southern California Maid Services Inc. to pay nearly $3.5 million in back wages and another $1 million in liquidated damages to 385 of its employees. The court ruled that by improperly classifying their workers as independent contractors, Sergio Maldonado and Lorenza Rubio, the company owners, avoided paying minimum wage and overtime, which the FLSA requires.
If you’re a wage worker and your employer is violating the Federal Labor Standards Act (FLSA) by paying you less than minimum wage, denying you overtime, or misclassifying you as a manager or independent contractor, don’t go running to the Department of Labor (DOL) for help anytime soon. According to the Government Accountability Office (GAO), the DOL’s Wage and Hour Division (WHD) is incompetent. What’s worse, the latest report, released on March 29, represents the third time in less than a year that the GAO has found the Wage and Hour Division’s performance a failure when it came to enforcing FLSA regulations and helping the people it was designed to serve.
