$3.9M Settlement Agreed on in Golden Corral Overtime Lawsuit

3.9M Settlement Agreed on in Golden Corral Overtime Lawsuit.jpg

In recent news, the Golden Corral Corporation has recently agreed to settle a wage and hour lawsuit. The wage and hour lawsuit was filed by Golden Corral workers who alleged that they were denied overtime pay during mandatory training for the company. The company agreed to settle for $3.9 million. This agreement came after the workers alleged the company was in violation of both state and federal labor law when they denied their workers overtime payment when they completed overtime for training.

Originally, the suit alleged that the Defendant, Golden Corral Corp., failed to provide compensation to their assistant managers for company training. Instead, they were given lump sums. The proposed settlement awaits approval from an Ohio federal judge. The proposed settlement would resolve the alleged FLSA violations against Golden Corral. The claimant is also requesting class certification so workers eligible to join the class can choose whether or not to join. This would allow them to choose whether or not to release their claims.

Robert S., the lead plaintiff, filed the proposed class action wage and hour lawsuit in January 2017. He alleged that Golden Corral wrongfully denied him and other workers in his situation overtime for training. The lump sum they were paid instead was distributed for each training week, even though the training hours amounted to more than 40 hours per week the majority of the time.

Businesses are required to pay their non-exempt employees 1.5 times their hourly rate when they work over 40 hours in one week or over 8 hours in one day. This is regulated by federal labor law. In addition to the regulations set down by federal labor law, each state also has labor policies in place to protect employees from this type of workplace abuse. In the Golden Corral case, plaintiffs claim the company wrongfully denied their employees proper compensation for all hours worked, which is in violation of the FLSA as well as state labor law.  In the aftermath of the legal trouble, Golden Corral adjusted their practices, now paying their managers in training an average of between $628.71 to $5,882 per week – amounts which are determined

Golden Corral reportedly has already changed its ways in wake of the claim, paying their managers in training an average of between $628.71 to $5,882 per week.

If you have questions about mismanagement of your plan’s funds or if you suspect your employer of ERISA violations, please get in touch with one of the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

Overtime Settlement For Health Workers Gets Final Approval

Overtime Settlement For Health Workers Gets Final Approval.jpg

Health workers were granted the requested final approval on an overtime settlement in their class action lawsuit against the Defendant Health Resource Solutions (HRS). Allegations were made that HRS failed to pay legally required overtime to healthcare workers in violation of the Fair Labor Standards Act (FLSA).

Sources report that the healthcare company misclassified a group of clinicians, registered nurses, occupational therapists, and other therapists, categorizing them as exempt from overtime pay. The judge noted that the $900,000 overtime settlement was fair, reasonable and adequate. He also made note that it seemed in the best interest of the class members who were settling.

The settlement would include covering:

·      $7,878 – settlement administration expenses

·      $300,000 – attorney’s fees

·      $7,500 – to the class representative

·      70 additional claims that were filed prior to the parties’ cutoff on April 2nd.

The class representative is plaintiff Monique B. One class member opted out of the deal with no other objections made. The plaintiff and the Class allege that HRS was in violation of both the FLSA and the Illinois Minimum Wage Law by misclassifying their employees that work with patients on a homecare basis as exempt. The settlement will end the litigation brought by the hybrid class and the collection action brought forth by Monique against HRS and co-owners of HRS, Robert M. and Glenn S.

The allegations in the original complaint indicated that the company, HRS, and the company’s owners knew that the employees being classified as exempt did not actually meet the necessary qualifications for the classification. In order for an employee to be legally classified as exempt, they must demonstrate the worker performs job duties that meet certain criteria and that they received compensation on either a salary or fee basis. According to the complaint, HRS created its own pay structure for workers.

·      Office time and staff meetings were compensated on an hourly basis.

·      Advancement was set for visits’ pay.

·      Travel time, scheduling/coordinating patient care with providers/speaking to patients about scheduling was not compensated.

·      Additionally, overtime weeks to which employees worked but were not compensated totaled 10,000 employee weeks.

The allegedly misclassified employees included 175 people. It has been reported that HRS will first cover employee claims and any settlement money remaining will be retained.

If you are considering filing an FLSA class action lawsuit or if you have questions about being misclassified, please get in touch with one of the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.