Tag Archives: arbitration

A Well Drafted Employee Arbitration Agreement Is Essential to Avoiding Costly Lawsuits

FLSA Lawsuits can cost employers significant amounts of money, both in defense costs and paying claims, however, there is a way to avoid these costly lawsuits. A well drafted arbitration agreement that covers actions brought under the Fair Labor Standards Act (FLSA), and other state/federal laws, is essential to avoiding several kinds of lawsuits. An arbitration agreement is an agreement that your employees sign which obligates them to bring their issues to an arbitrator you select, rather than to court. Employees who represent Plaintiffs in FLSA, and other, cases, rarely wish to pursue any action that involves arbitration, because it requires a significant investment on the part of the attorney in a type of case usually taken on contingency. The significant investment comes in the form of a filing fee for the arbitration. A filing fee for arbitration can cost that attorney ten times what bringing a lawsuit costs, and most Plaintiff’s attorneys are hesitant to invest that type of money up front, especially because under a contingency agreement they are only paid if they win. It is rare to find a Plaintiff’s Lawyer who wants to bring any type of case to arbitration because of cost, but also because arbitrators picked by employers tend to favor employers. Courts will enforce arbitration clauses, especially in FLSA lawsuits, but they must be written properly, and written to cover actions properly brought under the FLSA. An insufficient arbitration agreement, or a poorly written arbitration agreement, may not be enforced by a court. For help in drafting a proper arbitration agreement that a court can uphold contact Joshua Sheskin at Lubell Rosen’s Broward County Headquarters. – By: Joshua H. Sheskin, Esq., 954-880-9500JHS@LubellRosen.com.

 

An Illegal Immigrant Can Sue Their Employer in Federal Court

One of the most common misconceptions that employers have is that illegal immigrants cannot sue their employers. Illegal immigrants can sue their employers in Federal Court for the non-payment of minimum wage, and overtime, pay under the Fair Labor Standards Act (FLSA). Under the FLSA it does not matter whether someone is in the country illegally, nor will they be deported for filing a lawsuit. There are places in the country where an illegal immigrant cannot bring a Federal Lawsuit, but in Florida, Alabama, Georgia, and other states, an illegal immigrant can bring a lawsuit under the Fair Labor Standards Act (FLSA). Employers have to pay all of their employees in accordance with Federal Regulations or risk an expensive lawsuit. – By Joshua H. Sheskin, Esq., 954-880-9500JHS@LubellRosen.com

Under Federal Labor Law Very Few Employees are Independent Contractors

The law does not give the option to employers to pay their employees as independent contractors by paying them via 1099 rather than W-2. For purposes of Federal Labor Laws, and the Fair Labor Standards Act (FLSA), an independent contractor is a person who is not economically dependent on any one employer as a primary source of income. When you hire someone to paint your house you are hiring them as an independent contractor, but when you own a business and your employees depend on you to make a living you cannot hire them as independent contractors. This comes as a surprise to many business owners, and I defend businesses all of the time that make the mistake of classifying their employees as independent contractors. The line between independent contractor and employee can get fuzzy, even a part time employee with a second job may, or may not, be an independent contractor. Companies such as Grub Hub have come under fire, recently, for classifying their drivers as independent contractors. Do not risk misclassifying your employees, it can be a costly mistake. For advice as to whether your employees are independent contractors call, or email, attorney Joshua Sheskin of Lubell Rosen. – By Joshua H. Sheskin, Esq., 954-880-9500JHS@LubellRosen.com