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Fair Labor Standards Act (FLSA) Archives

Is tip sharing illegal?

When you are working in a bar or restaurant, the tips that you make from high quality customer service are likely to be what you depend on in order to pay your rent. Therefore, you will put a lot of effort into ensuring that your customers have a great experience. But when your hard-earned tips are being pooled and shared with other members of staff, you might feel like you have been short-changed. Here's a short overview of the legalities of tip pooling and what you can do about it.

Avoiding overtime lawsuits in Pennsylvania

The Fair Labor Standards Act (FLSA) has a set of guidelines for employers. One of these is demanding that employers categorize their employees as either exempt or nonexempt from the FLSA's overtime pay. The common and dangerous mistake that employers make is misclassifying their employees as exempt from the Overtime Labor Law. In doing this, employees can bring about a lawsuit and reclaim up to three times their normal hourly rate for the overtime that they were not paid enough for.

Are you an employee or a contractor?

According to the Fair Labor Standards Act (FLSA), the employment rights of an employee differ to those of a contractor. Those who have an "employment relationship" are the recipient of many more benefits. Because of this, a problem can occur. Employers often misclassify their workers for the unfair benefit of their business.

How to classify independent contractors and employees differently

In Pennsylvania, it's critical for employers to clearly define whether someone who works for them is classified as an independent contractor or an employee. That's because, according to state law, unless an employer proves it otherwise, all individuals who work for a company are perceived to be employees of it.

Frequently asked questions about overtime and work hours

As an employer, it is important to make sure that you are abiding by the fair labor standards act (FLSA) so as to ensure that you will not be subject to any complaints or claims made against your employees in regards to overtime and working hours.

2015 FLSA Litigation: On the Rise

During the last 15 years, wage and hour lawsuits filed in federal court have risen over 450%. According to the Judicial Resource Center, 8,781 Fair Labor Standards Act lawsuits were filed in 2015, which is a 7.6 percent increase from 2014. This year has seen new federal labor proposed regulations, the fight for higher minimum wage, an increased scrutiny on independent contractor classification and joint employer status. Experts believe these events, changes and public awareness have contributed to the rising onslaught of wage and hour suits. [1]

Zannikos and the Fifth Circuit: Highly Compensated Oil Workers May be Exempt from the FLSA

Over the winter, our firm wrote an article about various FLSA exemptions and used the case of Zannikos v. Oil Inspections to illustrate the application of the highly compensated employee exemption. To summarize, in 2012, Vasilios Zannikos, on behalf of all similarly situated employees, filed suit in the United States District Court for the Southern District of Texas against his employer, Oil Inspections U.S.A. He alleged his employer failed to pay him overtime wages pursuant to the Fair Labor Standards Act. Oil Inspections U.S.A. specializes in loss control operations in connection with oil cargo transfers. Zannikos was employed as a marine superintendent. This job required the Plaintiff to monitor and observe oil transfer operations, ensuring they were performed accurately, legally and safely. Plaintiffs served as quality control by inspecting loading and discharge equipment, identifying problems with equipment, safety or calibration, and then recommending remedies to the customers or Oil Inspections. Oil Inspections responded to this suit by filing for summary judgment, alleging marine superintendents were exempt from the requirements of the FLSA because their some of their duties were administrative and they were highly compensated employees. Both parties moved for summary judgment. On January 30, 2014, the District Court entered an order that Vasilios Zannikos was exempt from the FLSA due to the fact he was highly compensated, however the court did not find marine superintendents to be administrative employees. Both parties filed appeals and the Fifth Circuit Court of Appeals affirmed this ruling. Zannikos v. Oil Inspections (U.S.A.), Inc., 14-20253, 2015 WL 1379882, at *1 (5th Cir. Mar. 27, 2015).

Department of Labor to Propose New Overtime Rules

The Executive Branch has pushed for the expansion of overtime availability. Last year, President Obama used his executive authority to trigger a review and revision of the current overtime rules, which currently prevent certain classes of salaried workers from receiving overtime compensation. Specifically, Obama asked the Department to reevaluate the salary threshold at which employers are no longer obligated to pay employees overtime. That weekly threshold has been $455 since 2004. A change in that threshold level could make low-level supervisors in retail, fast food, health care and other industries eligible for overtime pay.

FLSA: Employers, the Courts and Private Settlements

No matter how an employer choses to handle an FLSA complaint, it is important to know that the FLSA requires the Department of Labor to supervise all potential violation settlements. This means that employees who receive severance packages or conditioned settlement agreements that purport to release all employment-related claims, may have not effectively released all of their claims under the FLSA.

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