Jan 13, 2022 | Overtime & Wages
Wage And Hour Class Action Challenges Policies & Practices Of Ryder Integrated Logistics & Ryder System For Their Alleged Failure To Permit Meal Breaks, Pay For Missed Meal Breaks & Pay Minimum Wage, Overtime And All Hours Worked
On January 12, 2022, a class action complaint was filed in United States District Court, Central District of California, on behalf of individuals who have worked for Ryder Integrated Logistics, Inc. (“Ryder Integrated”) and Ryder System, Inc. (“Ryder System”) as nonexempt, hourly employees, including, but not limited to, laborers, material, cargo and warehouse handlers, forklift operators, shipping and receiving clerks, clamp operators, quality auditors, storeroom attendants, trailer inspectors, warehouse coordinators, wave and inventory clerks, warehouse sanitation associates, and other employees with similar job duties, to challenge the Defendants’ alleged violations of California wage and hour laws.
The class action complaint challenges the polices and practices of Ryder Integrated and Ryder System which, allegedly, (1) failed to authorize and permit Plaintiff and the Class Members to take meal breaks to which they are entitled by law and failed to pay premium compensation for missed meal breaks; (2) failed to compensate Plaintiff and Class Members for all hours worked; (3) failed to pay Plaintiff and Class Members minimum wage for all hours worked; (4) failed to pay Plaintiff and Class Members overtime wages; (5) failed to provide Plaintiff and Class Members true and accurate itemized wage statements; and (6) failed to pay Plaintiff and Class Members all wages owed during employment and following separation from employment.
The complaint also alleges that the Defendants deny Plaintiff and Class Members a compliant 30-minute, uninterrupted meal period, in that they are routinely interrupted during meal periods and/or receive meal periods that are less than 30 minutes, in addition to not receiving premium pay for the non-compliant meal periods. Consequently, employees are, allegedly, denied compensation for all hours worked, including minimum wages, and overtime, which they are lawfully owed resulting from the additional off-the-clock work in excess of eight hours per day and 40 hours per week.
Further, the complaint alleges that after long work hours, second meal periods are denied; accurate, itemized wage statements reflecting premium payments for non-compliant meal violations are not provided; and, consequently, Plaintiff and Class Members do not receive all waged owed during employment and following separation from employment.
If you believe you have been a victim of Ryder Integrated Logistics’ and Ryder System’s alleged wage and hour violations, please complete the form above on the right, e-mail [email protected], or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], for a free, no-obligation evaluation of potential legal claims.
Jan 9, 2022 | Overtime & Wages
U.S. Department of Labor Recovers More Than $9.3 Million For Minnesota Employee Stock Ownership Plan After Investigation Finds Plan Overpaid For Shares – Order Protects Retirement Fund Of Kurt Manufacturing Company ESOP Eligible Employees
The U.S. Department of Labor has recovered more than $9.3 million for participants of a Minneapolis manufacturing company’s employee stock ownership plan (“ESOP”), after the fund overpaid for company stock in 2011, under the terms of a consent judgment entered in a federal court.
Entered in the U.S. District Court for Minnesota, the judgment ordered the ESOP’s previous trustee – Reliance Trust Company (“Reliance Trust”) – to restore $8,409,090 to the plan to resolve a lawsuit filed by the department. The court also ordered Reliance Trust to pay an $840,909 penalty for violating the Employee Retirement Income Security Act.
The action follows an investigation by the department’s Employee Benefits Security Administration and subsequent lawsuit alleging Reliance Trust caused the ESOP to overpay when it purchased the remaining shares of Kurt Manufacturing Company Inc. stock for $39 million in October 2011.
Kurt Manufacturing Company board members and fiduciaries of the company’s ESOP – Steven R. Carlsen, Paul A. Lillyblad and Kelli Watson – will restore $984,042 to the plan. The lawsuit alleged that, as the ESOP’s fiduciaries, the board members failed to monitor Reliance Trust’s determination of the stock’s value and allowed the company to purchase it for more than its true value. The court also ordered the directors to pay a $215,957 penalty for violating the Employee Retirement Income Security Act.
In total, the department recovered $9,393,132 for the participants in the Kurt Manufacturing Company Inc. Employee Stock Ownership Plan.
The three Kurt Manufacturing Company board members also agreed to not participate in Kurt’s stock appreciation rights plan; forego their right as of July 1, 2021 to any future contributions from Kurt to the supplemental executive retirement plan and rescind agreements that provided termination severance payments of their contract salaries for two years. The court barred Lillyblad and Watson from serving as fiduciaries of the ESOP in the future and barred Carlsen from serving as a fiduciary to any ERISA-covered plans.
Source: U.S. Department of Labor
Employees who believe their 401(k), employee stock option or other workplace retirement plan pension investments have suffered financial losses due to the breach of fiduciary duties by retirement plan administrators and the companies they represent are encouraged to complete the form on the right or contact Kehoe Law Firm, P.C., [email protected], for a free, no-obligation evaluation of potential legal claims.
Dec 23, 2021 | Overtime & Wages
The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.
- FLSA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
- FLSA Overtime: Covered nonexempt employees 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. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days. Some exceptions to the 40 hours per week standard apply under special circumstances to police officers and fire fighters employed by public agencies and to employees of hospitals and nursing homes.
- Hours Worked (PDF): Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
- Recordkeeping (PDF): Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.
- Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.
Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.
Many states, such as Pennsylvania, also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate. Where state law requires a higher minimum wage, the higher standard applies.
Some states have also enacted overtime laws. Where an employee is subject to both the state and federal overtime laws, the employee is entitled to overtime according to the higher standard (i.e., the standard that will provide the higher rate of pay).
Wage and Hour Division, U.S. Department of Labor
The Wage and Hour Division of the U.S. Department of Labor enforces the FLSA’s federal minimum wage, overtime pay, record keeping, and child labor requirements. The following are links to FLSA-related investigations conducted by the Wage and Hour Division of the U.S. Department of Labor:
$125K in overtime, prevailing wages recovered for 34 plumbers employed by federal project’s subcontractor
$1.3M in back wages recovered for 500 farmworkers in Texas denied full wages, overtime
$137,838 in wages, damages for 71 home healthcare workers who were denied overtime
Home healthcare provider pays $120K in back wages, damages to 36 employees after DOL finds wage violations
$139K in overtime back wages recovered for 21 employees after federal court orders employer to comply
$79K in wages recovered for 39 healthcare workers serving individuals with disabilities in Louisiana
Federal investigators find Texas residential builder owed employees $163K in overtime
Federal court orders Weymouth, MA restaurant and owner to pay $345K in back wages and damages to 13 workers denied overtime pay and earned tips
New Hampshire Retailer Pays $50,000 In Punitive Damages To Worker Terminated After Asking For Owed Overtime Wages
Investigation Recovers $97K In Back Wages, Damages For 330 Workers After U.S. Department Of Labor Finds Violations At 11 Frozen Yogurt Franchise Locations
Honolulu company to pay more than $1 million to 171 security officers after investigation found that the employer illegally schemed to deny payment of overtime wages
North Charleston employer found to have kept workers tips, failed to pay overtime; investigation recovers $154K in back wages, damages
Court orders Long Island horse trainer, stable to pay $132K to 52 employees after US Department of Labor finds wage theft, falsified records
$72K in back wages and damages recovered, after an investigation finds California construction employer underpaid its workers – employees not paid for required off-the-clock work
Hawaii restaurants operator shortchanged cooks In Honolulu, Kailua, failed to pay overtime wages
Federal court orders Massachusetts contractor with history Of FLSA violations to pay $438K in unpaid overtime to 250 employees
Court orders Long Island pizzeria to pay $178K in back wages, damages, penalties for denying workers overtime wages
$105K recovered in back wages for 92 workers, after investigation finds overtime violations by Tampa healthcare services provider
Oklahoma City area nursing homes operators failed to pay workers for time spent in training, meetings
US Department of Labor finds violations at Mississippi fish farms, recovers more than $102K in back wages for 123 workers
Luxury apartment complex in San Jose’s historic Japantown denied maintenance workers overtime wages owed
Wage & Hour Lawsuits
Oct 13, 2021 | Overtime & Wages
Important Things Employees Should Know About The Minimum Wage, Overtime Pay, And The Fair Labor Standards Act
Kehoe Law Firm, P.C. is making employees aware that the Fair Labor Standards Act (“FLSA”) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments.
Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.
The federal minimum wage provisions are contained in the FLSA. The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both.
The FLSA does not provide wage payment collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some states do have laws under which such claims (sometimes including fringe benefits) may be filed.
Covered, nonexempt workers are entitled to a minimum wage of $7.25 per hour effective July 24, 2009. Special provisions apply to workers in American Samoa and the Commonwealth of the Northern Mariana Islands. Nonexempt workers must be paid overtime pay at a rate of not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek.
Wages required by the FLSA are due on the regular payday for the pay period covered. Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA.
The FLSA contains some exemptions from these basic standards. Some apply to specific types of businesses; others apply to specific kinds of work.
While the FLSA does set basic minimum wage and overtime pay standards and regulates the employment of minors, there are a number of employment practices which the FLSA does not regulate.
For example, the FLSA does not require:
- vacation, holiday, severance, or sick pay;
- meal or rest periods, holidays off, or vacations;
- premium pay for weekend or holiday work;
- pay raises or fringe benefits; or
- a discharge notice, reason for discharge, or immediate payment of final wages to terminated employees.
The FLSA does not provide wage payment or collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some States do have laws under which such claims (sometimes including fringe benefits) may be filed.
Also, the FLSA does not limit the number of hours in a day or days in a week an employee may be required or scheduled to work, including overtime hours, if the employee is at least 16 years old.
The above matters are for agreement between the employer and the employees or their authorized representatives.
All employees of certain enterprises having workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person, are covered by the FLSA.
A covered enterprise is the related activities performed through unified operation or common control by any person or persons for a common business purpose and —
- whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated); or
- is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or an institution of higher education (whether operated for profit or not for profit); or
- is an activity of a public agency.
Any enterprise that was covered by the FLSA on March 31, 1990, and that ceased to be covered because of the revised $500,000 test, continues to be subject to the overtime pay, child labor and recordkeeping provisions of the FLSA.
Employees of firms which are not covered enterprises under the FLSA still may be subject to its minimum wage, overtime pay, recordkeeping, and child labor provisions if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in any closely-related process or occupation directly essential to such production.
Such employees include those who work in communications or transportation; regularly use the mails, telephones, or telegraph for interstate communication, or keep records of interstate transactions; handle, ship, or receive goods moving in interstate commerce; regularly cross State lines in the course of employment; or work for independent employers who contract to do clerical, custodial, maintenance, or other work for firms engaged in interstate commerce or in the production of goods for interstate commerce.
Domestic service workers such as day workers, housekeepers, chauffeurs, cooks, or full-time babysitters are covered if:
- their cash wages from one employer in calendar year 2010 are at least $1,700 (this calendar year threshold is adjusted by the Social Security Administration each year); or
- they work a total of more than 8 hours a week for one or more employers.
Tipped employees are individuals engaged in occupations in which they customarily and regularly receive more than $30 a month in tips. The employer may consider tips as part of wages, but the employer must pay at least $2.13 an hour in direct wages.
The employer who elects to use the tip credit provision must inform the employee in advance and must be able to show that the employee receives at least the applicable minimum wage (see above) when direct wages and the tip credit allowance are combined. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. Also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement.
The federal overtime provisions are contained in the FLSA. Unless exempt, employees covered by the FLSA must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit in the FLSA on the number of hours employees aged 16 and older may work in any workweek. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.
The FLSA applies on a workweek basis. An employee’s workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods. It need not coincide with the calendar week, but may begin on any day and at any hour of the day. Different workweeks may be established for different employees or groups of employees. Averaging of hours over two or more weeks is not permitted. Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned.
On May 20, 2020, the Department of Labor announced a final rule that allows employers to pay bonuses or other incentive based pay to salaried, nonexempt employees whose hours vary from week to week. The final rule clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek method under the FLSA. For more information, see www.dol.gov/agencies/whd/overtime/fww.
On May 18, 2020, the U.S. Department of Labor announced a final rule to withdraw the partial lists of establishments that lack or may have a “retail concept” under the FLSA. For more information, click www.dol.gov/agencies/whd/overtime/2020-7i.
On December 12, 2019, the U.S. Department of Labor announced a Final Rule that will allow employers to more easily offer perks and benefits to their employees. For more information, click www.dol.gov/agencies/whd/overtime/2019-regular-rate.
On September 24, 2019, the U.S. Department of Labor announced a final rule to make 1.3 million American workers eligible for overtime pay. For more information, click www.dol.gov/agencies/whd/overtime2019/index.
Overtime must be paid at a rate of at least one and one-half times the employee’s regular rate of pay for each hour worked in a workweek in excess of the maximum allowable in a given type of employment. Generally, the regular rate includes all payments made by the employer to or on behalf of the employee (except for certain statutory exclusions). The following examples are based on a maximum 40-hour workweek applicable to most covered nonexempt employees.
- Hourly rate (regular pay rate for an employee paid by the hour) – If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due. Example: An employee paid $8.00 an hour works 44 hours in a workweek. The employee is entitled to at least one and one-half times $8.00, or $12.00, for each hour over 40. Pay for the week would be $320 for the first 40 hours, plus $48.00 for the four hours of overtime – a total of $368.00.
- Piece rate – The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings. Example: An employee paid on a piecework basis works 45 hours in a week and earns $405. The regular rate of pay for that week is $405 divided by 45, or $9.00 an hour. In addition to the straight-time pay, the employee is also entitled to $4.50 (half the regular rate) for each hour over 40 – an additional $22.50 for the 5 overtime hours – for a total of $427.50.Another way to compensate pieceworkers for overtime, if agreed to before the work is performed, is to pay one and one-half times the piece rate for each piece produced during the overtime hours. The piece rate must be the one actually paid during nonovertime hours and must be enough to yield at least the minimum wage per hour.
- Salary – The regular rate for an employee paid a salary for a regular or specified number of hours a week is obtained by dividing the salary by the number of hours for which the salary is intended to compensate. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the salary.
If, under the employment agreement, a salary sufficient to meet the minimum wage requirement in every workweek is paid as straight time for whatever number of hours are worked in a workweek, the regular rate is obtained by dividing the salary by the number of hours worked each week.
To illustrate, suppose an employee’s hours of work vary each week and the agreement with the employer is that the employee will be paid $480 a week for whatever number of hours of work are required. Under this agreement, the regular rate will vary in overtime weeks. If the employee works 50 hours, the regular rate is $9.60 ($480 divided by 50 hours). In addition to the salary, half the regular rate, or $4.80, is due for each of the 10 overtime hours, for a total of $528 for the week. If the employee works 60 hours, the regular rate is $8.00 ($480 divided by 60 hours). In that case, an additional $4.00 is due for each of the 20 overtime hours for a total of $560 for the week.
In no case may the regular rate be less than the minimum wage required by the FLSA.
If a salary is paid on other than a weekly basis, the weekly pay must be determined in order to compute the regular rate and overtime pay. If the salary is for a half month, it must be multiplied by 24 and the product divided by 52 weeks to get the weekly equivalent. A monthly salary should be multiplied by 12 and the product divided by 52.
Source: U.S. Department Of Labor, Wage and Hour Division (Last accessed 10.13.2021)
Apr 30, 2021 | Overtime & Wages
Financial Advisors & Brokers – Have You Been Denied Deferred Compensation As A Participant In A Performance Award Contribution Deferral Plan?
Kehoe Law Firm, P.C. is investigating potential class action claims on behalf of financial advisors and brokers who participated in a performance award contribution deferral plan and were denied deferred compensation.
If You Served As A Financial Advisor Or Broker And Were Denied Deferred Compensation, You May Have Claims Under The Employee Retirement Income Security Act Of 1974, 29 U.S.C. § 1001, et seq. (“ERISA”), For The Failure Of Your Employer To Pay The Required Deferred Compensation.
If You Have Questions Or Concerns About Kehoe Law Firm’s Class Action Investigation Or Potential Claims, Please Contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804 [email protected], [email protected].
Feb 27, 2019 | Overtime & Wages
Under the Fair Labor Standards Act (“FLSA”), Can Uniforms or Other Items Primarily for the Benefit of the Employer Be Included as Wages?
The FLSA does not allow uniforms, or other items which are considered to be primarily for the benefit or convenience of the employer, to be included as wages. Thus, an employer may not take credit for such items in meeting his/her obligations toward paying the minimum wage or overtime.
FLSA Requirements for Uniforms and Other Items
Uniforms: The FLSA does not require that employees wear uniforms; however, if the wearing of a uniform is required by some other law, the nature of a business, or by an employer, the cost and maintenance of the uniform is considered to be a business expense of the employer. If the employer requires the employee to bear the cost, it may not reduce the employee’s wage below the minimum wage of $7.25 per hour effective July 24, 2009 – nor may that cost cut into overtime compensation required by the FLSA.
For example, if an employee who is subject to the statutory minimum wage of $7.25 per hour (effective July 24, 2009) is paid an hourly wage of $7.25, the employer may not make any deduction from the employee’s wages for the cost of the uniform nor may the employer require the employee to purchase the uniform on his/her own. However, if the employee were paid $7.75 per hour and worked 30 hours in the workweek, the maximum amount the employer could legally deduct from the employee’s wages would be $15.00 ($.50 X 30 hours).
The employer may prorate deductions for the cost of the uniform over a period of paydays provided the prorated deductions do not reduce the employee’s wages below the required minimum wage or overtime compensation in any workweek.
Other Items: Employers at times require employees to pay or reimburse the employer for other items. The cost of any items which are considered primarily for the benefit or convenience of the employer would have the same restrictions as apply to reimbursement for uniforms. In other words, no deduction may be made from an employee’s wages which would reduce the employee’s earnings below the required minimum wage or overtime compensation.
Some examples of items which would be considered to be for the benefit or convenience of the employer are tools used in the employee’s work, damages to the employer’s property by the employee or any other individuals, financial losses due to clients/customers not paying bills, and theft of the employer’s property by the employee or other individuals. Employees may not be required to pay for any of the cost of such items if, by so doing, their wages would be reduced below the required minimum wage or overtime compensation. This is true even if an economic loss suffered by the employer is due to the employee’s negligence.
Employers may not avoid FLSA minimum wage and overtime requirements by having the employee reimburse the employer in cash for the cost of such items in lieu of deducting the cost from the employee’s wages.
Examples of Employee Reimbursement Issues
A minimum wage employee working as a cashier is illegally required to reimburse the employer for a cash drawer shortage.
An employer improperly requires tipped employees to pay for customers who walk out without paying their bills or for incorrectly totaled bills.
An employer furnishes elaborate uniforms to employees and makes them responsible for having the uniforms cleaned.
An employee driving the employer’s vehicle causes a wreck, and the employer holds the employee responsible for the repairs, thereby reducing the employee’s wages below the minimum wage.
A security guard is required to purchase a gun for the job, and the cost causes him/her to not earn the minimum wage.
The cost of an employer-required physical examination cuts into an employee’s minimum wage or overtime.
Source: U.S. Department of Labor. According to the Department of Labor, the aforementioned is for general information and is not to be considered in the same light as official statements of position contained in regulations.
