Tag: overtime

NY ATTORNEY GENERAL SUES PAPA JOHN’S PIZZA FRANCHISEE FOR $2 MILLION

Earlier this month, New York’s Attorney General Eric Schneiderman sued the owners of five Papa John’s pizza restaurants located in New York City for $2 million.  Papa John’s has been the subject of an ongoing investigation by the Attorney General regarding its pay practices. 

The lawsuit claims that defendants underpaid more than 400 delivery workers, failed to pay overtime, and shaved down workers’ hours.  The suit also alleges that pizza delivery workers received as little as $5.00 per hour for their work, which is far lower than the state’s minimum wage requirement, and required delivery workers to pay for and maintain their bike equipment needed for deliveries.

This firm will continue to monitor the developments in this case.

TD BANK AGREES TO $9.9 MILLION OVERTIME SETTLEMENT IN ASSISTANT STORE MANAGERS CLASS ACTION LAWSUIT

Last month, TD Bank NA agreed to pay $9.9 million as a class action settlement over allegations that the bank failed to pay overtime wages to assistant store managers.  The lawsuit, filed in February 2013 by current and former TD Bank assistant store managers, alleged that they were improperly classified as exempt employees and denied overtime wages. 

Plaintiffs claimed that they performed various non-exempt work, such as bank teller duty, counting money in the bank’s vault and opening and closing branches.  Soon after the case was filed, Plaintiffs received class certification.   The settlement will provide relief to an estimated 2,600 eligible class members and covers employees who worked in New Jersey, New York and Pennsylvania.

While the job title of manager suggests that employees would not be entitled to overtime wages due to the executive exemption under federal and state laws, it is important to review the actual duties of such employees to determine whether they are properly classified as exempt.  TD Bank now joins Capital One as another bank to have paid a substantial class action settlement to assistant store managers.

MORGAN STANLEY TO PAY $4.2 MILLION IN OVERTIME CLASS ACTION LAW SUIT

In June 2011, three client service associates in the wealth management division of Morgan Stanley filed a class action lawsuit in New York federal court on behalf of current and former client service associates.  Plaintiffs claimed that Morgan Stanley, one of the world’s largest brokerage firms, violated the federal Fair Labor Standards Act and New York state labor law by failing to pay overtime.

  Last week, Morgan Stanley agreed to settle the case for $4.2 million.  The three lead plaintiffs agreed to settlements of $10,000 each in addition to their individual settlement amounts and the other plaintiffs who joined shortly thereafter will receive $7,500.

Client service associates are often compensated by both the brokerage firm and the individual broker for whom they work.  They are usually classified as non-exempt employees, which entitles them to overtime pay if they work more than 40 hours per week pursuant to both federal and state law, but as here, such employees are often not paid overtime pay.

LINKEDIN SETTLES OVERTIME CASE FOR $6 MILLION DOLLARS

Earlier this week, LinkedIn, a social networking site for professionals, agreed to pay approximately $6 million to 359 current and former workers in New York, California, Illinois and Nebraska.  The U.S. Department of Labor conducted an investigation and found that LinkedIn violated the Fair Labor Standards Act by failing to record and compensate workers for all hours worked.

  LinkedIn will pay over $3.3 million in overtime owed to workers and more than $2.5 million in damages.  As a part of its settlement, LinkedIn also agreed to train all employees that “off-the-clock-work” is prohibited for non-exempt workers.

Off-the-clock work continues to be an issue faced by workers all over the country.  Employers often will have employees continue to work, for example, through lunch breaks or after they punch out, without compensation.  This is a violation of federal and state wage and hour law.

DOMINO’S PIZZA FINED BY ATTORNEY GENERAL FOR IMPROPER PAY PRACTICES

New York Attorney General Eric Schneiderman recently announced a $448,000 settlement with six Domino’s pizza franchisees operating in New York.  The business owners paid workers less than the $5.65 per hour tipped minimum wage and failed to pay adequate overtime, thereby violating wage and hour laws.  Specifically, delivery drivers were inadequately paid for their work, some receiving only $5.00 per hour, and workers who used their cars to deliver pizza were not reimbursed for their expenses.

  Moreover, employees were shifted from one store to another just before they were to reach 40 hours worked, and a manual override or a system flaw in the timekeeping system prevented an accurate calculation of the overtime worked. The settlement money will be dispersed among approximately 750 employees.

The Attorney General is also investigating Papa John’s franchisees.

PRESIDENT OBAMA ISSUES EXECUTIVE ORDER REGARDING EXPANSION OF OVERTIME PAY

On March 13, 2014, President Obama issued an executive order requesting that the U.S. Labor Department issue regulations that mandate overtime pay to employees who otherwise would be exempt under the federal Fair Labor Standards Act (“FLSA”).  The administration hopes to qualify employees, such as fast-food managers, office workers and other employees that are currently classified as exempt white-collar employees, for overtime pay under the FLSA.  Generally, these workers are exempt from the overtime requirements of the FLSA because they are deemed to be “administrative, executive or professionals.”

The proposed changes will likely be subject to public comment before final approval by the Labor Department, and may result in modifications of the original proposal.

MCDONALD’S BECOMES THE SUBJECT OF WAGE AND HOUR LAWSUITS IN NEW YORK, CALIFORNIA AND MICHIGAN

Last week, several McDonald’s employees filed lawsuits in New York, California and Michigan alleging that McDonald’s and its franchise owners have unlawfully underpaid them by not paying overtime, manipulating time-cards and ordering them to work “off the clock.”  Specifically, the Michigan plaintiffs claim that they were unlawfully required to pay for uniforms and were improperly told to show up to work, but then ordered to wait an hour or longer, without pay, until more customers arrived.   Workers in California cited to improper pay practices such as failing to pay for all hours worked, reducing hours worked from pay records and denying workers meal periods and rest breaks.  Lastly, the New York plaintiffs claim they were not reimbursed for the cost of cleaning their uniforms. 

This firm will continue to monitor the developments in these cases.

CHICKIE’S AND PETE’S TO PAY $6.8 MILLION FOR VIOLATING WAGE AND HOUR LAWS

Chickie’s and Pete’s, a prominent sports bar with 9 locations throughout New Jersey and Philadelphia, has recently agreed to pay $6.8 million in back wages and damages for taking tips from bartenders and waiters and for violating federal minimum wage and overtime laws.  The U.S. Department of Labor conducted a year long investigation and found that Chickie’s and Pete’s illegally underpaid and took tips from 1,159 servers and improperly retained 60% of the monies from the staff members’ tip pool, which was known as “Pete’s Tax.” 

 Separately, Chickie’s and Pete’s also announced that it agreed to pay an additional $1.68 million to settle a wage and hour claim commenced by 90 current and former employees.  As part of the settlement, Chickie’s and Pete’s also agreed to train all employees regarding their rights under the wage law and operation of tip pools and agreed to compliance monitoring for 18 months. 

The Department of Labor has described this case as one of the largest cases ever brought against an employer for violating tip-credit laws.

CONSTRUCTION COMPANY HIRED TO REBUILD SEASIDE HEIGHTS BOARDWALK FACING WAGE AND OVERTIME LAWSUIT

Jamali Developers LLC, the construction company hired to rebuild the iconic Seaside Heights boardwalk after the aftermath of Superstorm Sandy, has just been served with a lawsuit.  The suit names Jamali Developers’ CEO and managers as well as another company alleged to be related to Jamali Developers.  According to their complaints filed in the Superior Court of Middlesex County, carpenters, Fredy Beza and Angel Martinez, seek a representative action for workers under the New Jersey Prevailing Wage Act on grounds that Jamali Developers allegedly failed to pay workers the mandatory wage rate.  Alternatively, Plaintiffs seek a class action suit due to Jamali Developers alleged failure to pay overtime on the reconstruction project and thereby violating the federal Fair Labor Standards Act.  The Plaintiffs state that there may be over 75 workers entitled to such pay.

This firm will continue to monitor the developments in this case.