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. 

Multiple Class Action Suits Filed Against McDonald’s by Fast Food Workers

Earlier this month, multiple class actions were filed in California, Michigan and New York against McDonald’s alleging that the fast-food giant is systematically stealing employee wages. Fast food workers filed the class action lawsuits against McDonald’s and some its franchisees claiming widespread wage theft that was accomplished by forcing employees to work off the clock, shave hours off time cards, and refusing to pay overtime.

McDonald’s executives are currently reviewing the allegations made in the lawsuits. The company claims that they (and their franchisees) are committed to fully investigating the claims and providing appropriate actions in response to any problems discovered.

These class action lawsuits are one more in a string of actions taken by fast-food workers protesting their pay. Many are paid minimum wage.

As recently as December, workers protesting minimum wage staged an extensive protest throughout the US. They were demanding that the federal minimum hourly wage be raised from the current $7.25 to $15.00. McDonald’s responded to protests by pointing out that their jobs provide workers with opportunities for advancement, competitive pay and benefits. A McDonald’s spokesperson also indicated that the company invests in training and professional development in order to aid workers in learning skills that are practical and transferable in business.

Experts agree that this string of actions being taken by fast-food employees upset with their wages, lack of overtime pay, etc. will continue.

If you feel your employer may be paying you unfair wages please get in touch with Blumenthall, Nordrehaug & Bhowmik to discuss potential resolutions to the issue. 

Federal Aviation Administration Authorization Act vs. California’s Meal and Rest Break Requirements

Initially, wage and hour putative class action brought by the same truck drivers was dismissed. Alleged claims were based on violations of California’s meal break laws. The class action was dismissed on the ground that the Federal Aviation Administration Act (FAAAA) preempted California meal break laws. It was the second time in recent months that a court upheld the argument that California’s break laws are preempted by the FAAAA. The FAAAA specifically preempts state laws when there is a significant impact on the “routes, service or prices” of motor carriers.

Truck drivers received a boost recently as their attempt to revive the class action suit against Vitran Express Inc. was supported by the Ninth Circuit court’s decision that the Federal Aviation Administration Act did not preempt California’s meal and rest break requirements. Many are watching the progress of the case.

Additional Background on the Case:

Plaintiffs were former truck drivers of Performance Food Group, Inc. (PFG), located in California. Plaintiffs claimed that PFG arranged delivery routes in order to ensure excellent customer service and timely delivery of cargo without taking into account “time pressure” on the truckers who were being given delivery windows and other policies that prevented them from taking meal breaks.

If you have questions about the California meal break laws, ask the experts at Blumenthal, Nordrehaug & Bhowmik. 

Not to be Left Out, a Cincinnati Bengals Cheerleader Filed a Class Action Complaint

After a Raiders cheerleader filed a class action suit earlier this year, many assumed it would spur others in similar organizations to protest payment and wage problems in the industry with additional suits. As predicted, another cheerleader has filed a Class Action Complaint, this time claiming that it is the Bengals that are in violation of the Fair Labor Standards Act and Ohio Minimum Fair Wage Standards Act. Alexa Brenneman, Cincinnati Bengals cheerleader from May 2013 through January 2014, claimed she was compensated $90 per home game (at most). Her Class Action Complaint against the Cincinnati Bengals claims that she was underpaid for the hours of work put in on behalf of the team and includes all persons “employed by Defendant as a Cincinnati Bengal cheerleader at any time from February 10, 2011 through the present.”

Brenneman specified that Bengal cheerleaders were required to attend mandatory practices, public appearances, pregame time in the stadium, photo shoots for calendars, promotions, etc. Hours required amounted to more than 300 hours per year. Considering the pay rate offered, Brenneman claims the actual pay rate when hours dedicated are considered comes out to less than $2.85/hour which is drastically lower than Ohio’s minimum wage rate in 2013 ($7.85).

It’s interesting to note that the Brenneman specified other organization in her complaint as having positive pay structures. She stated that the Seahawks cheerleaders are paid hourly wages and overtime as specified by law and for all hours required. She also stated that the Cavaliers’’ cheerleaders are provided compensation for required time outside of games.

Every employee should expect adequate compensation for all required job duties. If you feel you are not being treated fairly by your employer, get in touch with the experts at Blumenthal, Nordrehaug & Bhowmik today. 

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. 

Remember the Raiderettes: Get Appropriate Compensation for Your Work

Employees across the nation should take a page from the Raiderettes this year. When the cheerleaders felt that they weren’t being fairly compensated for their hours, their overtime, business expenses, etc. they didn’t just keep smiling and cheering their team on. They kept smiling, cheering their team on and filed a class action lawsuit against the Raiders.

In addition to above cited failures, the class action lawsuit also claims that the Raiders failed to provide their cheerleaders (The Raiderettes) with appropriate meal/rest breaks. According to court documents, Raiderettes are paid $1,250 per season. When hours worked are taken into consideration, this amounts to less than $5.00/hour. Every Raiderette is required to sign a contract that states they will receive their compensation at the end of the season and that their compensation will be subject to fines.

As a result of the filing of this class action lawsuit, any Raiders cheerleaders from the past four seasons can now come forward seeking damages. In the typical season, the Raiders employ an average of 40 cheerleaders. That means the Raiders’ off-season legal problems are likely to grow. If the court rules in favor of the Raiderettes, any cheerleader on the most recent season’s squad could be awarded lost wages and penalties. Cheerleaders from previous seasons joining the class action lawsuit could be awarded lost wages.

Experts considering details of the case indicate that the subpar treatment of cheerleaders is not limited to the Raiders; it appears other cheerleading squads across the NFL may have similar complaints. They are being encouraged to come forward.

If you find yourself in a situation with less than adequate compensation for job duties expected, unreimbursed expenses incurred as a result of your job, or unpaid overtime - get in touch with the experts at Blumenthal, Nordrehaug & Bhowmik today. Class action lawsuits aren’t just for cheerleaders.   

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.