Feb 9, 2022 | Overtime & Wages
DOL Investigation Results In Indiana Home Health Care Provider Being Ordered To Pay Back Wages & Damages To 171 Caregivers
An Indianapolis employer assigned home healthcare workers to shifts at two related companies, but failed to combine the hours, denying them earned overtime pay when they worked more than 40 hours per week for the same employer.
Under terms of a consent judgment, a federal court ordered Timothy Paul, owner of both Heal at Home LLC and TPS Caregiving LLC – operating as Comfort Keepers – to pay $215,859 in overtime back wages and an additional $216,938 in liquidated damages and interest to 171 workers. In the decision issued, Jan. 20, 2022, Judge Sarah Evans Barker also enjoined the employer from violating the Fair Labor Standards Act in the future.
The U.S. Department of Labor’s Wage and Hour Division found that the employer violated the FLSA when it issued workers separate checks at “straight time” for hours worked at each facility when it should have combined hours and paid overtime at time and one-half employee’s rate of pay when employees exceeded 40 hours a week.
Victims Of Employer Wage And Hour Violations
Employees who have been harmed by wage and hour violations have the right, under the FLSA, to file a private lawsuit to recover back wages, an equal amount in liquidated damages, plus attorney’s fees and court costs.
If you believe you were not paid proper wages or overtime, misclassified as exempt from overtime or harmed by other employer wage and hour violations, please complete the form above on the right or email [email protected] to request a free, confidential consultation and no-obligation evaluation of potential legal claims.
Feb 9, 2022 | Overtime & Wages
Federal Court Orders New Jersey Company & Executives To Pay Over $700K To Workers Denied Overtime
A federal court in New Jersey ordered an electrical and heating, ventilation and air conditioning company based in Union, NJ and its two co-managers, to pay 89 electricians, electrician helpers and HVAC technicians after a U.S. Department of Labor investigation found the defendants deliberately denied overtime.
In a consent judgment a federal court ordered FTR Electrical and Mechanical Contractors Inc. – operating as FTR Electrical & HVAC Services – the company’s part-owner, President Antonio Goncalves, and company Vice President Francisco Carmo to pay $711,694 in back wages and liquidated damages to the affected workers. The court also ordered the employer and its co-managers to pay $16,450 in civil money penalties and interest to the Department of Labor for their willful violations of the Fair Labor Standards Act.
The court’s action follows an investigation by the department’s Wage and Hour Division into the employer’s pay practices and litigation by the Office of the Solicitor. The Wage and Hour Division found that the defendants willfully violated the FLSA when they did the following:
- Paid employees straight-time for hours worked over 40 per week.
- Required employees to work off the clock and did not pay them for all hours worked.
- Required employees to clock in when they started work each workday, but directed them not to clock out when they finished working at the end of each workday.
- Paid employees for a maximum of eight hours each workday, regardless of how many hours employees actually worked each day.
- Failed to pay additional wages to employees who regularly worked more than eight hours each workday, resulting in workweeks longer than forty hours.
- Failed to maintain accurate records of employees’ hours worked and total wages paid.
Victims Of Employer Wage And Hour Violations
Employees who have been harmed by wage and hour violations have the right, under the FLSA, to file a private lawsuit to recover back wages, an equal amount in liquidated damages, plus attorney’s fees and court costs.
If you believe you were not paid proper wages or overtime, misclassified as exempt from overtime or harmed by other employer wage and hour violations, please complete the form above on the right or email [email protected] to request a free, confidential consultation and no-obligation evaluation of potential legal claims.
Jan 30, 2022 | Overtime & Wages
On January 28, 2022, a “collective action”/”class action” complaint was filed in United States District Court, Southern District of New York, against Peloton Interactive, Inc. (“Peloton”) to remedy alleged violations of the Fair Labor Standards Act (“FLSA”) and New York Labor Law.
According to the complaint, the Plaintiff and other similarly situated employees were employed by Peloton as non-exempt, Inside Sales Representatives (“ISRs”). The “Inside Sales Representative” title, according to the complaint, collectively refers to the various titles Peloton used to describe the inside sales position, including “Inside Sales Representative,” “Account Executive, Inside Sales,” and “Team Lead, Inside Sales.”
Peloton allegedly violated the FLSA by failing to pay Plaintiff and other similarly situated Inside Sales Representatives overtime compensation at the rate of one and one-half times their regular rate of pay for the hours they work over 40 in a workweek. By unlawfully failing to pay overtime, Peloton, according to the complaint, also violated New York Labor Law Articles 6 and 19 by failing to pay Plaintiff and other members of the New York class at the prescribed rate of one and one-half times the employees’ regular wage rates for all overtime hours worked.
The lawsuit seeks to recover the unpaid wages owed to Plaintiff and all other similarly situated employees of Defendant Peloton (current and former employees) who worked at any of Peloton’s locations at any time during the relevant period before this Complaint was filed up to the present.
The complaint alleges upon information and belief that Defendant Peloton employed in excess of one hundred ISRs throughout the relevant statute of limitations periods, including, but not limited to, other individuals employed as an “Inside Sales Representative,” an “Account Executive, Inside Sales,” and as a “Team Lead, Inside Sales.” The group also includes ISRs employed by Defendant Peloton throughout the COVID-19 pandemic.
PELOTON INSIDE SALES REPRESENTATIVES, OR OTHERS WHO PERFORMED SUBSTANTIALLY SIMILAR DUTIES TO AN INSIDE SALES REPRESENTATIVE, SUCH AS ACCOUNT EXECUTIVE, INSIDE SALES, OR TEAM LEAD, INSIDE SALES, WHO BELIEVE THEY WERE NOT PAID PROPER WAGES OR OVERTIME, MISCLASSIFIED AS EXEMPT FROM OVERTIME, OR FINANCIALLY HARMED BY OTHER EMPLOYER WAGE AND HOUR VIOLATIONS, ARE ENCOURAGED TO COMPLETE THE FORM ABOVE ON THE RIGHT OR EMAIL [email protected] FOR A FREE, NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS.
Jan 28, 2022 | Overtime & Wages
Virginia-Based Staffing Agency Ordered To Pay 1,105 Aides More Than $7.2 Million In Back Wages & Damages
The U.S. Department of Labor has reported that a federal court in Virginia has entered a judgment ordering a Norfolk-based medical staffing agency, which intentionally violated federal laws and denied 1,105 certified nursing aides, licensed practical nurses and registered nurses their rightfully earned overtime wages, to pay more than $7.2 million in back wages and liquidated damages.
The judgment in United States District Court for the Eastern District of Virginia, Norfolk Division, requires Medical Staffing of America LLC, d/b/a Steadfast Medical Staffing, to pay at least $3,619,716 in back wages and at least $3,619,716 in liquidated damages to 1,105 employees. The court ordered the Department of Labor’s Solicitor of Labor to update the back wages to the present, which will likely increase the back wages and liquidated damages amounts substantially. The action follows an investigation by the U.S. Department of Labor’s Wage and Hour Division and litigation by the Solicitor of Labor.
The government’s investigation determined that since at least Aug. 18, 2015, the employer willfully misclassified the aides and nurses as independent contractors. By misclassifying the workers, the medical staffing agency paid them straight-time wages instead of time-and-a-half when they worked over 40 in a workweek. Steadfast Medical Staffing, a healthcare industry employment agency serving healthcare facilities nationwide by providing independent medical personnel, failed to maintain accurate records of total weekly hours worked. Both actions violated the Fair Labor Standards Act.
The court’s decision ends litigation filed in 2018 by the department after Steadfast Medical Staffing refused to pay back wages owed, and come into compliance after the investigation. For more information, please click complaint filed in 2018, complaint filed in 2019 and the court’s memorandum opinion and order.
Source: U.S. Department of Labor
EMPLOYEES WHO BELIEVE THEY HAVE BEEN MISCLASSIFIED OR OTHERWISE FINANCIALLY HARMED BY EMPLOYER WAGE AND HOUR VIOLATIONS ARE ENCOURAGED TO CONTACT KEHOE LAW FIRM, P.C. BY COMPLETING THE FORM ABOVE ON THE RIGHT OR SENDING AN E-MAIL TO [email protected] FOR A FREE, NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS.
Jan 27, 2022 | Overtime & Wages
Federal Investigation Recovers $221K In Back Wages, Damages For 59 Workers // Federal Court Orders Shuttle Service To Pay $742K In Wages, Damages To 368 Employees After Department of Labor Investigation & Litigation
The U.S. Department of Labor (“DOL”) announced that it recovered $221,053 in back wages and liquidated damages for 59 drywall installation workers in Idaho, after their employer denied them earned overtime wages.
The DOL’s Wage and Hour Division (“WHD”) found the employer intentionally underpaid its workers by denying them their rightfully overtime wages earned, in violation of the Fair Labor Standards Act (“FLSA”). The employer, according to the DOL, repeatedly told investigators that the company paid employees overtime wages at time-and-one-half their rates of pay when they worked more than 40 hours per week, as the law requires. Investigators, however, determined the employer’s claims were untrue and that the employer had not paid workers overtime as claimed.
In another matter, the DOL announced that a federal court entered a consent judgment ordering a Brooklyn, New York bus and shuttle service to pay $742,500 in back wages and liquidated damages for overtime wages denied to 368 shuttle drivers, following an investigation and litigation by the DOL.
The WHD investigation determined that the employer failed to pay overtime wages to employees who picked up and dropped off passengers for the company’s clients. The WHD found the drivers were paid flat rates ranging from approximately $100 to $190 per day without regard to the number of hours they worked in a day or in a workweek. Employees typically worked 45 to 60 hours per workweek, and the FLSA requires employers to pay overtime when employees work more than 40 hours in a workweek. The WHD found the company improperly assumed its employees were not entitled to overtime under the FLSA, and investigators also found that the employer failed to keep adequate and accurate records as required by law.
Private Litigation, Minimum Wage & Overtime Under The FLSA
Employees have the right to file a private lawsuit to recover back wages, an equal amount in liquidated damages, plus attorney’s fees and court costs. In such a case, the Department of Labor will not seek the same back wages and liquidated damages on that employee’s behalf.
Workers are reminded that the federal minimum wage is $7.25 per hour (effective July 24, 2009). Many states also have minimum wage laws, and in cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
Nonexempt employees covered by the FLSA must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours – seven consecutive 24-hour periods), at a rate not less than one and one-half times the regular rate of pay.
Additionally, hours worked ordinarily include all the time during which an employee is required to be on an employer’s premises, on duty, or at a prescribed workplace; employers must display an official poster outlining the requirements of the FLSA; and employers must also keep employee time and pay records.
EMPLOYEES WHO BELIEVE THEY HAVE BEEN HARMED BY EMPLOYER WAGE AND HOUR VIOLATIONS ARE ENCOURAGED TO CONTACT KEHOE LAW FIRM, P.C. BY COMPLETING THE FORM ABOVE ON THE RIGHT OR VIA [email protected] FOR A FREE, NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS.
Jan 27, 2022 | Overtime & Wages
Federal Overtime Rule (Effective January 1, 2020)
An employee is entitled to at least minimum wage and overtime pay at time and a half for all hours worked over 40 hours per week. The federal Fair Labor Standards Act (“FLSA”), however, does not require overtime pay for “any employee engaged in a bona-fide executive, administrative, or professional capacity” who is paid on a salaried basis instead of an hourly wage and meets the minimum salary threshold defined in federal regulations. (29 U.S.C. § 213a(1).
The United States Department of Labor published revised final regulations concerning its overtime requirements under the FLSA on September 24, 2019. (29 CFR 541).
The revised federal regulations included:
- raising the “standard salary level” from $455 to $684 per week (equivalent to $35,568 per year for a full-year worker); and
- allowing employers to use non-discretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level.
What Is Overtime?
Unless employed in an occupation specifically exempted by the Pennsylvania Minimum Wage Act or FLSA, employees must receive pay for hours worked in excess of 40 in a workweek, at a rate not less than one and one-half times their regular rate of pay. This rate is referred to as “overtime” pay.
Who Qualifies For Overtime Pay?
With few exceptions, hourly employees who work more than 40 hours a week must be paid time and a half for all hours over 40.
Most salaried employees who work more than 40 hours per week and earn less than the federal salary threshold are eligible for overtime regardless of their job duties.
Most salaried employees who do NOT perform executive, administrative, or professional duties are eligible for overtime regardless of how much they are paid.
Salaried employees who perform executive, administrative, or professional duties and make more than the salary threshold per year are NOT eligible for overtime.
What Is The “Regular Rate” Of Pay?
Generally, an employee’s regular rate is the amount that the employee is regularly paid for each hour of work. The regular rate of pay cannot be less than the Pennsylvania minimum wage of $7.25 per hour.
When an employee is paid on a non-hourly basis (e.g., piece work, salary), the regular hourly wage rate is determined by dividing the total hours worked during the week into the employee’s total earnings. For example, an employee who has piece rate earnings of $500 in a workweek for 40 hours work has a regular rate of $12.50 per hour. $500.00 total wages ÷ 40 Hours = $12.50 Per Hour Regular Rate.
Can Bonuses Be Used To Satisfy Part Of The New Standard Salary Level Test?
Yes. Federal regulations allow up to 10 percent of the salary threshold that can be satisfied by non-discretionary bonuses, incentives, and commissions paid on an annual basis.
Can An Employee Be Required To Work Overtime?
Yes. Employers can dictate the time of day and hours an employee works.
Can An Employee Be Required To Waive Their Right To Receive Overtime?
No. An announcement by an employer that overtime work will not be permitted, or that only overtime work authorized in advance will be paid, does not cancel the employer’s obligation to pay overtime to workers for hours worked beyond 40 hours per week.
Can An Employer Refuse To Pay An Employee For Overtime For Hours That Have They Have Worked?
No. An employer cannot refuse to pay an employee for overtime, unless the employee qualifies for an exception from overtime under Pennsylvania’s Minimum Wage Act or the FLSA.
Source: PA Department of Labor & Industry/Overtime Rules In Pennsylvania
EMPLOYEES IN PENNSYLVANIA WHO BELIEVE THEY HAVE BEEN MISCLASSIFIED AS EXEMPT FROM OVERTIME PAY, OR OTHERWISE FINANCIALLY HARMED BY EMPLOYER WAGE AND HOUR VIOLATIONS, ARE ENCOURAGED TO CONTACT KEHOE LAW FIRM, P.C., MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], FOR A FREE, NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS.
