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› $580,975,000 verdict in consumer fraud case
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.
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.
The Fair Labor Standards Act (FLSA) was created by the United States government in 1938. This act was set to protect the rights of workers and encourage ‘fair play’ between the management and labor. This act established a national minimum wage, created overtime pay and installed regulations for minors in the workplace.
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