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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 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 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.
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.
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.
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.
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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