DOL Recovers $4.83 Million in Back Wages From Wal-Mart for More Than 4,500 Workers

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Published on Tuesday, 01 May 2012 22:22

Wal-Mart Stores Inc., has agreed to pay $4,828,442 in back wages and damages to more than 4,500 employees nationwide following an investigation by the U.S. Department of Labor's Wage and Hour Division (DOL) that found violations of the federal Fair Labor Standards Act's overtime provisions. Wal-Mart has also agreed to pay $463,815 in civil money penalties. The alleged violations related to current and former vision center managers and asset protection coordinators at Wal-Mart Discount Stores, Wal-Mart Supercenters, Neighborhood Markets and Sam's Club warehouses. The DOL alleged that Wal-Mart failed to compensate these employees with overtime pay, considering them to be exempt from the FLSA's overtime requirements. However, the DOL’s investigation apparently determined that the employees were nonexempt and consequently Wal-Mart owed them for overtime pay for any hours worked beyond 40 in a week.

According to Secretary of Labor Hilda L. Solis, "Misclassification of employees as exempt from FLSA coverage is a costly problem with adverse consequences for employees and corporations…Let this be a signal to other companies that when violations are found, the Labor Department will take appropriate action to ensure that workers receive the wages they have earned." The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in executive, administrative, professional and outside sales positions, as well as certain computer professionals, provided the employees meet certain criteria regarding their job duties and are paid on a salary basis at not less than $455 per week (the federal standard). It is important for employers to recognize that job titles and job descriptions do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the DOL’s regulations. Read More.

Wage and Hour Lawsuits Have Become a Major Concern for Employers

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Published on Wednesday, 04 April 2012 05:40

Wage-and-hour lawsuits have become a major concern for employers. As reported by www.workforce.com, “The complexity of federal and state laws, the relative ease of winning class action certification and workers laid off as a result of the weak economy have led to more litigation in recent years, observers say. For example, the Department of Labor said there were 40,000 wage-and-hour complaints during fiscal 2010, up about 15% from the roughly 35,000 complaints in fiscal 2009. Many claims fall into two major categories: misclassification of workers as exempt, and unpaid overtime, observers say. However, employers can minimize the chances of litigation by taking steps that include periodic audits to determine whether employees are being properly classified, as well as careful record-keeping. When employers are sued, experts say settling the case may be the wiser course. Wage-and-hour litigation is the fastest-growing type of class action, legal experts say. ‘If you asked me what was the headache that kept folks up at night five years ago when it comes to workplace-related lawsuits, I'd say employment discrimination lawsuits,’ said Gerald L. Maatman Jr., a partner with law firm Seyfarth Shaw L.L.P. in Chicago. ‘Today, the headache that keeps people awake at night’ is wage-and-hour litigation, he said. ‘If you're interested in saving money and avoiding the courthouse, I think that's the No. 1 issue right now,’ Maatman said. ‘Every year we think we're at the top of the bell curve, but we haven't reached that yet.’" Read More.

DOL Cracks Down On Restaurants in Massachusetts for Overtime Violations

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Published on Tuesday, 03 April 2012 15:46

An investigation by the U.S. Department of Labor (DOL), focusing in on the restaurant industry in Massachusetts, has apparently uncovered substantial violations of the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act (FLSA). To date, investigations by the Boston District Office of the department's Wage and Hour Division, have found $1,307,808 in back wages due to 478 employees of multiple establishments. In addition, the division now is assessing liquidated damages, payable to employees, when employers are found in violation. According to Secretary of Labor Hilda L. Solis, “The restaurant industry employs some of our country's lowest paid workers, who are vulnerable to exploitation…In response to the extensive level of noncompliance we discovered, we will expand our efforts to bring the industry into compliance to ensure that employees receive the minimum wage and overtime wages required by law…Our investigations found that several restaurants violated the FLSA by paying employees flat salaries for all hours worked without overtime pay, failing to combine hours worked at multiple locations for overtime purposes, paying incorrect overtime rates to tipped employees, making illegal deductions from employees' wages and failing to keep accurate records of employees' hours." George A. Rioux, the division's district director in Boston, commented that "Even more serious, our investigations found an emerging trend of misclassifying restaurant workers as independent contractors in order to avoid minimum wage, overtime and record-keeping requirements of the FLSA." Read More.

DOL Extends Comment Period on Proposed Rule to Require Minimum Wage and Overtime Protections for In-Home Care Workers

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Published on Tuesday, 13 March 2012 17:49

The U.S. Department of Labor's Wage and Hour Division has announced a nine-day extension of the comment period for its proposed rule to require minimum wage and overtime protections for workers who provide in-home care services. The division originally published a notice of proposed rulemaking in the Federal Register on December 27, 2011, with a comment period set to end on February 27, 2012. The division then extended the comment period to March 12. The DOL has now decided to extend the comment period through March 21. Comments received between December 27 and March 21 will be included in the rulemaking record. The extension of time is intended to provide additional time for members of the public to analyze the issues raised in the proposal and to provide comments. The proposed rule expands minimum wage and overtime protections to include all home care workers employed by third parties, such as staffing agencies. It also clarifies that individuals performing skilled in-home care work are entitled to minimum wage and overtime pay. However, individuals engaged by families for “true companionship or fellowship activities,” such as visiting with friends or pursuing hobbies, still would be considered "companions" and thus will not be required to meet the act's labor standards provisions. To learn more about the proposed rule, visit http://www.dol.gov/whd/flsa/companionNPRM.htm.