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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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 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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Three federal judges this week upheld a $35.6 million ruling against Family Dollar Stores Inc., saying the chain denied employees overtime pay by classifying them as store managers.

A three-judge panel in Tuscaloosa agreed with a 2006 jury that found the Matthews, N.C.-based company in violation of the Fair Labor Standards Act and awarded back pay to 1,424 employees, who routinely worked 60 to 70 hours a week. Their duties often included mopping floors, unloading trucks, stocking shelves and running cash registers.

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