Accusations of Labor Violations at TGI Friday’s

One of the nation’s most popular casual dining spots has been named in a class action lawsuit. TGI Friday’s is accused in the suit of systematically underpaying its tipped employees. Allegations made within the suit filed on April 17, 2014 in New York Federal Court include: TGI Friday’s requires that tipped workers are at work early and say late after closing without minimum wage compensation and/or overtime pay. The suit was filed by four former employees of TGI Friday’s in the New York metro area and Fredericksburg, Virginia. Plaintiffs also indicate that the restaurant management utilized a central time-keeping system that allowed them to cut hours from employee time records – requiring employees to work off the clock doing prep work and clean up before and after their shifts/restaurant hours.

No one has indicated a specific dollar amount for this lawsuit, but speculation puts it in the millions. Allegations of violations of the Federal Fair Standards Act and the New York Law were made against TGI Friday’s and Carlson Restaurants (its parent company).

TGI Friday’s has approximately 540 domestic locations and 17,700 US employees. The suit represents all current and former workers: servers, bartenders, hosts, bussers and any other “tipped” workers at the chain.

Workers are seeking recovery of minimum wages as well as overtime pay, misappropriated tips, unlawful deductions, etc.

Many employers are attempting to maximize profit by minimizing employee costs. If you are being underpaid for hours worked, get in touch with an expert wage and hour attorney at Blumenthal, Nordrehaug & Bhowmik. 

Beau Biden Named in Unpaid Overtime Suit

Three detectives (R. Durnan, G. Christian, and M. Forbes) previously employed by the Delaware Attorney General’s Office have filed charges against their former employer claiming that they were not paid overtime. The federal lawsuit claims that the failure to pay overtime was in violation of federal labor laws and that in response to their demands for overtime pay they were demoted.

The detectives named Delaware Attorney General Beau Biden, Timothy Mullaney (his chief of staff) and the Delaware Department of Justice as defendants. The civil action was filed in U.S. District Court earlier this week.

Christian retired earlier this year and Durnan is set to retire in May 2014. The three were titled “detectives,” but their job duties were almost entirely made up of one task – handling the out-of-state extradition of fugitives who fled the state. The detectives allege that they all worked in excess of 40 hours/week between November 2010 and November 2013, but were never paid overtime due. According to the allegations made in the suit, Mullaney’s response to the detective’s request for overtime compensation was to reassign Durnan and Forbes to different assignments and to leave Christian in his position at a limited capacity with no overnight travel, no flying and a maximum of 37.5 hours allowed per week. The detectives claim the reassignments were retaliation. The plaintiffs seek overtime pay due, reassignment to their old positions, damages and legal fees.

Talk to the experts at Blumenthal, Nordrehaug & Bhowmik to find out if you have cause to worry about your own situation. Are you getting the overtime pay you are due? 

Arguing the Professional Exemption

The Obama administration recently took a closer look at the Professional Exemption. Their scrutiny was followed by instructions to the Department of Labor to narrow the definition of the exemption. Changes are set to take effect in 2015, but Courts may begin utilizing the new definitions and strictures immediately if recent activity is any indication. 

Court cases that involve the proper classification of employees are generally the most contentious. This makes sense as the stakes are higher than cases involving potential repayment of back wages and/or penalties for overtime. They can also require complete reclassification of employees listed in the case with overtime required from that point forward. In proper classification cases, a ruling against the employer often means a complete change in the way the company runs their business.

Many employers have been cutting corners to save money on overtime. Some say it’s due to the Labor Code coming across as complex. But it’s more likely a combination of complexity allowing for loose interpretations/purposeful misinterpretations embraced during low cash flow points in a troubled economy. Employers feel they need to save the money and many are deciding to do whatever they can (legal or not) to save money on overtime costs.

A recent case involving day rate employees being classified under the labor code as professionals exempt from overtime pay seems to support the idea that the courts will consider changes to the Professional Exemption now rather than waiting until 2015. Workers in the recent case were working 12-hour shifts, sometimes 7 days a week leaving them totaling in excess of 84 hours some weeks. Their work was compensated by a day rate. Some weeks their total pay (if they worked only a couple days) was less than $455/week. Legal representation for the plaintiffs in the case argued that claiming an employee is a salaried professional, but paying them less than $455/week some weeks does not meet the requirements of the Professional Exemption’s first prong.

The case was concluded on March 27, 2014. The Federal Middle District of Pennsylvania court clerk recorded judgment for wage and hour violations in the case (3:14-cv-00042-RDM). Allegations accused the employer of failing to pay workers overtime for their hours that exceeded the full time 40. The court supported the claims. We can most likely expect to see more decisions leaning towards the new understanding of the Professional Exemption.

If you feel that you may be due past overtime or know someone who is in an untenable work environment, get in touch with the experts at Blumenthal, Nordrehaug & Bhowmik today.

Obama Signs Memo to Strengthen Overtime Pay Rules

President Barack Obama signed a presidential memo this month directing the Dept. of Labor to come up with new overtime rules in order to make more workers eligible for time and a half pay. Obama has made it clear that he will bypass Congress when necessary to take action on economic initiatives. This is currently one of his most far-reaching executive actions this year even though new rules wouldn’t take effect most likely until 2015.

The new overtime pay rules would be focused towards workers on salary who earn more than $455/week and are ineligible for overtime due to management titles even though their actual job duties include few supervisory capacities. New regulations could change the definition of “supervisor” according to employment law. The salary/week limit separating workers who get paid overtime and those who don’t was last raised in 2004 by the Bush administration. Prior to 2004 it hadn’t changed since the 1970’s.  

Those in support of new overtime rules feel that millions of American workers could benefit from a change. Those who are against the change feel that increasing the number of workers eligible for time and a half pay for overtime would create a burden too heavy for small businesses and could potentially cost Americans jobs.  

Obama’s focus isn’t limited to overtime pay rules. This year, the President is also focused on federal minimum wage. He hopes to increase worker pay this year by calling on Congress to increase the minimum from $7.25 to $10.10.

For additional information on employment law, federal minimum wage and overtime regulations get in touch with the experts at Blumenthall, Nordrehaug & Bhowmik. 

Employees and Their Smartphones: Is Your Smartphone Overworking You?

In modern American culture most people are hopelessly attached to their smartphones. If that’s not the case, the remaining few (with rare exceptions) can’t deny that they have an extremely close relationship with other technology (i.e. their computer, laptop, tablet, etc.) There are a multitude of benefits that come from living in this technological day and age, but because of smartphones and all the other beloved technology, work is bleeding into employees’ personal time.

The recession put a lot of pressure on employers to get the most of their employees. As a result, American business owners are squeezing their workers and cutting costs at the same time. One way in which many American employers are doing so is by accessing their workers after hours through all of the convenient technology that leaves employees available 24/7. Vacations are often unrecognizable as such due to the fact that contact is never severed with the employer. Many employees find it hard to differentiate between hours worked and hours off due to the easy and frequent access employers avail themselves of freely.

Experts agree that if employers had to bear the actual expense of paying for the overtime hours they are demanding, they would have actively sought a different solution such as hiring more workers during the economic recovery.

In response to the seemingly never ending after hours access provided by technology, employees are asking the courts to find a solution. It’s a changing time as courts attempt to reconcile laws that have been in place for decades with technological trends that have drastically altered the workplace landscape. Never before have employees been so irrevocably connected to their employers without break.

In 2011, there were 7,006 wage-and-hour suits filed (many of them class action suits) in federal court. This was nearly quadruple the total in the year 2000. In 2011, the Labor Department was able to recover $225 million in employee back wages. This was up 28% from the previous year. 300 wage-and-hour investigators were added in 2010 and 2011 alone which resulted in a 40% staff increase (to a total of 1,050). This was done in what was openly declared and effort to protect America’s workers.

Consider the facts and then consider your employer/employee relationship. If you feel that you are stuck in a 24/7 job with 40-hour/week pay, get in touch with the experts at Blumenthal, Nordrehaug & Bhowmik today. Don’t let your smartphone take the blame. 

Unpaid Overtime: What Type of Plaintiff Are You?

With the continued increase in unpaid overtime lawsuits in almost every industry, employees may find it useful to consider the various types of plaintiffs simply to get an idea of where their own workplace situation lies.

What Type of Plaintiff Are You?

1. Do you find yourself a slave to your handheld device? When you leave work, do you continue to answer questions, delve through documents and conduct brainstorming sessions? Do you often find yourself in arguments with your significant other because they simply want you to attend a family function, complete a household chore or actively involve yourself in a conversation from beginning to end without being interrupted by someone at work that needs you? If so, you could be a “worker with a handheld device” plaintiff. You go to work and you come home, but you never seem to be off the clock. You answer calls, check emails, and basically continue working into the night. Many would classify all this “after hour” work as unpaid overtime.

2. Does your job require a lot of in-office prep in order to go “on the clock?” Do you have to arrive early in order to complete a series of log ins, paper pushing, or mandatory meetings before you can actually “go to work?” If so, you might be an “off the clock work in the office” plaintiff. Many are asking the question (in court) whether or not they should be able to clock in when they get to work to prepare to work or if they are donating the time it takes to perform necessary functions prior to starting the job duties employers are willing to pay for.

3. Do you enjoy the use of a fancy title without the fancy job duties? Many employers have turned to the non-promotion promotion as a solution to overtime. “Promoting” employees without actually giving them managerial responsibilities is a game plan used by employers looking to keep labor costs down. Many managerial positions are exempt from overtime pay laws and requirements. If you found yourself impressed with an empty title at first, don’t feel bad, you aren’t the only one and you could be a “fancy title” plaintiff.

If you have more questions now that you understand the basics behind many of the employment law related suits you’ve been reading about in the news, get in touch with the attorneys at Blumenthal, Nordrehaug & Bhowmik today and get the right answers. 

When Should Employees Get Overtime Pay?

Federal law regulates overtime pay requirements. According to federal law, employees who work more than 40 hours in one week should receive one and a half times their normal pay rate for the “overtime” hours. As is often the case, there are exceptions to this law, but it’s important for employees to question their situation due to the fact that employers often misunderstand the rules or misapply them in specific circumstances – most often at the employee’s expense.

If you are an employee that works more than 40 hours and week without overtime pay, your employer could be in violation of the Fair Labor Standard Act. If an employer is in violation of this law, you could be entitled to the amount owed to you as well as additional funds to cover liquidated damages and attorney’s fees.

Define Your Employee Classification and Job Duties:

There are two categories of employees: exempt and nonexempt. The Fair Labor Standard Act (FLSA) doesn’t cover exempt employees. Federal law does not require employers to provide exempt employees with overtime pay. Exempt employees are often in managerial positions. They can receive pay on a salary basis or as an hourly wage. They have independence in their job duties and authority over their own work. Exempt employees are involved with creating/applying workplace policies and have some responsibility for making decisions within the company framework.

It’s important to consider exempt status because employers will often categorize employees as exempt inaccurately. For example, an employer could provide an employee with the title of Assistant Manager, but fail to provide the employee with any authority or responsibility for other employees. Another example is when employers categorize an employee as an independent contractor, but their day-to-day job duties more closely resemble those of a normal employee.

If you are an employee who does not receive overtime pay it’s important to define your status: exempt or non-exempt. This will determine whether or not your situation is governed by the FLSA. If you are misclassified as exempt, you can fight to get the compensation to which you are entitled by federal law.

Employers subject to the Fair Labor Standard Act aren’t permitted to exchange personal days or other extra benefits for overtime pay. Employers are also not allowed to have mandatory meetings that occur when employees are officially “off.” As an employee, you are entitled to the pay you have earned. When you put in extra hours, you are entitled to extra pay. If your employer doesn’t pay you overtime (to which you are legally entitled through the Fair Labor Standard Act), contacting an expert in unpaid overtime is the most appropriate step towards resolution.

Blumenthal, Nordrehaug & Bhowmik helps you enforce your overtime rights. If your employer is knowingly and willingly refusing to pay you earned overtime pay, you are entitled to the amount owed. Call today to discuss your employment situation and see how you can get paid past due overtime wages.