Buffalo Rock is one of the country’s largest privately owned Pepsi-Cola bottlers with 14 distribution centers in Alabama, Florida, and Georgia. Its distribution area covers a population of 6.5 million.

Employees represented by the suit contend that Buffalo Rock violated the Fair Labor Standards Act when it failed to pay them and others in the company for work performed over the regular 40 hour work week.

“Buffalo Rock knowingly, intentionally and willfully violated the Fair Labor Standards Act by failing to pay plaintiffs and all similarly situated employees the overtime compensation to which defendant Buffalo Rock knew they were entitled,” the lawsuit says.

Buffalo Rock maintains that the FLSA’s overtime clause doesn’t apply to the overtime hours clocked by the workers represented by the lawsuit.

Provisions for overtime pay are a common basis for many lawsuits citing FLSA violations. FLSA regulations exempt certain workers, such as executive, administrative, professional and outside sales employees, from overtime. However, according to the Department of Labor, “employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week.” Misclassification of employees, unclear employment agreements, or simple misunderstanding of the law are common violations of FLSA provisions.

SOURCE: Fair Labor Standards Act › class action filed against Alabama company for FLSA overtime violations

According to the Palm Beach Post, the plaintiffs alleged that the club “operated an illegal tip pool knowingly” and with “reckless disregard for the law.” Despite their courtroom victory, however, the plaintiffs failed to persuade the jury of those counts.

An attorney for the poker dealers told the Palm Beach Post that a federal judge will determine how much back pay will be awarded to each dealer, estimating that the total amount would reach $130,000 plus attorney’s fees. Most of the plaintiffs are no longer employed at the Kennel Club.

The ruling will likely boost earnings for card dealers in other Florida clubs where money is commonly skimmed from card dealer tips to pay floor supervisors. According to the plantiffs’ attorney, some dealers could go from making $40,000 to $70,000 with full tips.

The attorney told the Post that the club was “stealing the wages that somebody earned. Period. So their bottom line wouldn’t be affected.”

“They were taking from somebody without them knowing it and giving it to somebody who didn’t deserve it,” he told the Post.

Federal labor regulations allow businesses to pay employees less than minimum wage if the employees “customarily and regularly receive tips.” Attorneys representing the dealers successfully argued that because the club paid dealers $3 below the minimum wage, it shouldn’t have claimed tips to compensate supervisors “who had no direct service contact with the public.”

The Palm Beach Kennel Club is an established dog racing track dating back to 1932. The club also offers simulcast racing, a poker room, and dining options.

SOURCE: Fair Labor Standards Act › Card dealers win labor case against Palm Beach club