Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.

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.

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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.

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Talk about irony. The Equal Employment Opportunity Commission (EEOC) – an advocate of workplace fairness – has been willfully violating the Fair Labor Standards Act for several years, according to a report in the Washington Post. An arbitrator has decided that the EEOC unfairly and illegally gave compensatory time off instead of overtime pay to its employees throughout the country. The arbitrator said this system amounted to “forced volunteering.”

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An attorney representing a healthcare worker who is suing his employer for denied overtime says that lawsuits filed under the Fair Labor Standards Act may become more common during the economic recession. The plaintiff alleges that his employer, Delta-T Group and Delta-T Group Social Service Staffing, Inc. denied him overtime compensation by wrongly classifying him as an independent contractor. Because he is not appropriately classified as an employee of the company, the plaintiff cannot receive the same benefits that regular employees of the company received.

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A lawsuit filed by employees against Buffalo Rock Co. of Birmingham, Alabama has been certified as a class action lawsuit, according to a report in the Birmingham News. Workers filed the lawsuit in the U.S. District Court for Birmingham in 2007, alleging the company’s failure to compensate some of its sales and delivery employees for overtime work.

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The U.S. Department of Labor’s Wage and Hour Division has cited a Missouri restaurant with numerous violations of the Fair Labor Standards Act, according to a report in the Bolivar Herald-Free Press.

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A group of poker dealers in Palm Beach, Florida won a lawsuit in federal court this week filed against the Palm Beach Kennel Club Entertainment Complex for violations of the Fair Labor Standards Act. The workers alleged that managers of the club skimmed money off their tips to pay supervisors working the card room floor. According to the Palm Beach Post, the club failed to prove to the jury that it operated a legal tip pool under the FLSA regulations.

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The Capital, a newspaper serving the Annapolis, Maryland area, recently ran an interesting article explaining how the Annapolis County school board has been violating the Fair Labor Standards Act for 30 years because it averaged pay for school secretaries rather than pay them specific hourly wages. The violation was discovered last year when school officials installed a new payroll system.

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Misclassification of store managers is a ruse sometimes used by businesses to avoid paying certain employees overtime. As we reported in December, a federal appeals court upheld a $35.6 million judgment against Family Dollar Stores, Inc. for wrongly classifying store employees as managers and then denying them overtime pay. Last week, a federal jury in the U.S. District Court for New Jersey ordered Staples, Inc., the world’s largest chain of office supply stores, to pay nearly $2.5 million to 343 plaintiffs because of similar violations to the Fair Labor Standards Act.

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The U.S. District judge for the District of Kansas ruled this week that thousands of meatpacking workers may move forward against Tyson Foods, Inc. as a class action suit. The workers allege that they were denied overtime and other forms of compensation by the company. The ruling was a positive development for the workers, comprised mainly of Latin American immigrants who couldn’t afford to proceed individually.

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